Manchester City have reported on Tuesday a net loss of £126 million for the 2019-2020 season, while the club expect to return to profitability in 2020/21, as a result of a less COVID impacted season and deferred 2019/20 revenues.
In an official club statement on Tuesday, the club announced that it had released its Annual Report for 2019-20, which has covered an 'unprecedented season' that was paused between March and June, and then completed in the 2020-21 financial year, as a result of the global pandemic.
The report highlighted within the statement that Manchester City have reported an 11% reduction in revenues to the value of £478.4 million - which the club credits to revenue delays relating to just under a quarter of Premier League matches and the latter stages of the Champions League and FA Cup.
In addition, the statement draws attention to the impact of significant players sales, such as Leroy Sane to Bayern Munich, being delayed by the pandemic and do not appear in the 2019-20 accounts.
The club continue, "Ticket and all stadium related sales ceased, season cards were refunded, and broadcasting revenues were reduced following rebates given by the Premier League to broadcasters."
Despite the decrease in revenues, Manchester City have reiterated the fact that they have "continued to meet its full financial commitments, in addition to providing support to staff and the local community".
Despite the loss of £126 million, Manchester City announced in their statement that the club expects to return to profitability in the current season, stating: "The result of these extraordinary pandemic factors is a reported net loss of £126.0m for the 2019-20 season. However, the club expects to immediately return to profitability in 2020-21, as a result of a less COVID impacted season and deferred 2019-20 revenues. The likely normalised losses for each of the 2019-20 and 2020-21 seasons will therefore be less than £60m per year."
Chairman Khaldoon Al Mubarak observed within the report that the club have "a business that is fundamentally strong, with committed shareholders and with significant assets, built carefully over a decade and upon more than a century of history.”
CEO Ferran Soriano continued by stating, “Clearly, the 2019-20 accounts in isolation are not the best representation of the reality of the season with delayed player trading and numerous games being played after 30th June 2020, the revenues from which will be accounted in the 2020-21 period. A better financial picture of the COVID years will be provided at the end of the 2020-21 season, when the two seasons are combined and normalised.”
The full club statement including the annual report can be found here.
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