15/16 financial results - £20.5m profit announced

I want to know what those fucking Gooner idiots have got to say particularly that one prize plumb who loves to go on about our accounts!
 
I'm out of the country at the moment with only patchy internet access so only seen the headline figures and the bottom line is well below what I was expecting.

This seems to be because of (a) higher player amortisation and (b) neutral player trading profit whereas I'd anticipated £72m for the former and £30m profit for the latter, giving a basic profit of £36m with an overall profit of £66m. This was based on some deals where we'd loaned players out with an

The figures released suggest that maybe we've got players still on the books that we thought had been sold for a profit.

Another disappointment is the match day revenue,which I thought would be closer to £60m. This was based on last year's revenue of £43m based on a reduced capacity of 44k. So that was the equivalent of £1,000 per seat over the season.

I extrapolated that using this season's 54k capacity to give around £55m with additional premium seating. Then I added the revenue from a league cup semi & final, plus a CL quarter & semi final, to get £60m. The lower figure suggests that the revenue from hospitality seating isn't that great.

I'll maybe be able to say more when I get to read the report in detail but that might not be until I get back from the USA at weekend.
 
john@staustell said:
Well he may mean the switching of large amounts of wages to CFG last year (or before, can't remember). Which sort of brought down our wages ratio. But there were no eyebrows raised at the time so it's all sound and above board.

I really would welcome some explanation of the financial structure regarding CFG, the club and the other clubs. Basically we have no idea.
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It's not complicated particularly. CFG is owned 87% by ADUG and 13% by the Chinese. It owns 100% of Manchester City and at least some part of the other clubs. CFG also owns 2 other companies, City Football Services (CFS) & City Football Marketing (CFM). We transferred some staff previously paid by City to these companies and they now provide their services to all the CFG clubs. So we provide scouting services and arrange global marketing deals with companies like Nissan.

In doing that, the wages came off City's books and onto those of the new companies, meaning our wage bill was reduced. But the two companies charged their services back to the football clubs, meaning our wages went down but operating expenses went up, as the bill for those services became a non wage expense for City. All the people crying foul, and that we were fiddling the books, didn't understand that. The net effect was negligible overall, with maybe a £2-3m benefit to us overall in the first year.

The eventual intention that CFS and CFM make a profit by charging back more than they cost.
 
UEFA have their views and we have ours, in the end football will show who was right...Cannot remember our chairman's exact quote but it was something along those lines.

There are pro's and con's within these accounts as a business, I own an accountancy but do not have any Clients anywhere near this size to be able to analysis the accounts fully. However as others do I will give my go.

Commercial revenue has not increased which is strange as I would imagine most clubs have seen increased commercial revenue. However, we are so well run I do think we are playing a waiting game with the big commercial deals and will look to do a deal when our hand is the strongest, back to back PL's or CL. The analysis who said City just need to win a CL and we will be laughing all the way to the bank, is correct.

Matchday revenue, interesting what PB says with it being slightly under what he suggested and is probably due to the large quantity of extra seats been taken by season tickets under £500. It is an improvement and one we will hope to see go up in terms of numbers as opposed to price increases. It is a tough one with cheap season tickets as although the theory of a full stadium helps bring in other money, a £300 season ticket is value if you only go to 10 games so missing games you do not feel under pressure that you need to sell the ticket etc.

Broadcasting revenue, always the optimist until No bias at all Gill gets his way and all English UEFA money goes straight to United I do expect this to go up. However, next season maybe less due to lower league position this season meaning less CL money.

United/ RM/ Barca are still a long way ahead of us in terms of turnover, but in United's case they are so far behind in so many other ways it is not important. It will be a very hard task to get close to them within the next 5 years, but the gap for me will close within that time.

Most football fans look at the accounts as an indication of what we can do in the transfer market and these say we are in great shape. I truly believe we are in position to buy any player who wants to come to us and we can buy at an accepted market value. I also on a sporting point of view think next season will need a lot of changes but if done right, we will be in a position where we only need to buy 1-2 a year and get real quality (this is where Bayern, Barca and RM are in my view).

I also think after everything the owner has done for this club, the crowning glory for them would be the CL and not the PL as it is for most of us. It would also propel the club forward and help us to catch up the teams still ahead. So I do think all Man City fans should get behind the club and leave the battle with UEFA to the club, so far without shouting they have been very adept.

Overall, every reason to be 100% positive of how we are placed for sporting success.
 
Peggy's a blue said:
I do not know if the owners are happy with it or not, but the overall return on investment (ROI) seems low, however the improvement would be most satisfying.
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The ROI is huge if you take into account the capital growth as opposed to simply income
 
I'd have thought matchday revenue might have been higher, particularly as for that season a fair number of seats were sold twice through the ticket exchange scheme being brought in-house and those selling the tickets only being recompensed this season with a reduction in the cost of their seasoncard. But overall it looks more than satisfactory.
 
SWP's back said:
The ROI is huge if you take into account the capital growth as opposed to simply income
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Indeed. Just comparing the clubs market value now to 8 years ago should make them happy.
The fact we're profitable is the cherry on the cake.

To be in the top 4/5 in the world in terms of revenue is an astonishing achievement within such a short period of time.
 
SWP's back said:
Munich's sponsors own the club don't they? Or at least in part.
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That's right. Adidas, Audi and Allianz each own 8,33% of Bayern Munich AG (AG means a stock company). The remaining 75% is owned by Bayern Munich e.V. (maybe this translates to registered association, the "mother" club).
Bayern sold 10% of the shares at the time in 2002 to Adidas for approximately 77 million Euros, in 2010-2011 another batch of shares to Audi for 90 million Euros, and lastly in 2014 Allianz bought their part for 110 million Euro's. Via a small capital increase in 2010 this ensured that all 3 companies own 8,33% of the stocks in the company.
All 3 companies provide a member of the board of director of the stock company. Also the Deutsche Telekom CEO and the board spokesman of Unicredit Bank are members of that board of directors.
That's the facts. Now allow me a couple of personal remarks.
1. Looking at the time of these investments, and at the amount of money in German football these investments are huge. Hamburg today has a yearly turnover of 100 million Euros. Bayern's success in the last 15 years has a lot to do with them having a lot more money that everybody else (a lot as in orders of magnitude). When Bayern pride themselves about their fantastic ability to create healthy finances, this is a large part of the explanation.
2. Bayerns attitude towards City and PSG and anybody else who got investment in the last years is extremely hypocritical.
3. Fuck them ! Can't stand the arrogant bastards.
 
Peggy's a blue said:
Fair point swp but we always calculated the sum invested, that created the profit, mute point I suppose :-)
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That would be worthwhile if the owners were looking to take a dividend (on which case the yield would be fairly poor), but he's seen a 100% growth on his invested capital (buying the club and investment in facilities and playing staff).

If he were to sell today he'd walk away with a very tide profit.
 
Thaksinssoldier said:
An interesting aside that I hadnt realised is the chairman of Etihad Airways is on our board of directors since 2010.
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Two different guys with very similar names http://www.directorstats.co.uk/director/mohamed-al-mazrouei/ The Chairman of Etihad is not the one on City's board

There are two people named Mohamed Al Mazrouei in the DirectorStats.co.uk database. Agewise one of them is 38 years old and the other is 38 years old. Records show that there are currently 78 filings mentioning a professional called Mohamed Al Mazrouei. Below you'll find short descriptions of the two people sharing the Mohamed Al Mazrouei name we have information about. Complete information can be found above.

Mohamed Mubarak Al Mazrouei, of Manchester City Women's Football Club Limited (City Football Hq, 400 Ashton New Road, M11 3FF, Manchester) is a 38-year-old director that is mentioned in 77 filings. This Emirati national worked for 8 companies, to name just a few Manchester City Women's Football Club Limited, City Football Services Limited, and City Football Marketing Limited. This director worked with Khaldoon Khalifa Al Mubarak in Manchester City Women's Football Club Limited, Simon Pearce in Manchester City Women's Football Club Limited, John Theodore Macbeath, Alberto Galassi, Martin Lee Edelman.

There is another officer named Mohamed Mubarak Fadel Saeed Al Mazrouei at DirectorStats.co.uk (38 years old). This Uae citizen's work history includes holding the position of a director at Etihad Airways (New Airport Road, P.o.box 35566, Abu Dhabi). Since the appointment on 2009-05-07 we found 1 filing about this manager in the categories: officers (appointments).
https://www.cpc.gov.ae/en-us/thecrownprincecourt/CPC_Management/Pages/The_Undersecretary.aspx
 
Gordyola said:
Two different guys with very similar names http://www.directorstats.co.uk/director/mohamed-al-mazrouei/ The Chairman of Etihad is not the one on City's board

There are two people named Mohamed Al Mazrouei in the DirectorStats.co.uk database. Agewise one of them is 38 years old and the other is 38 years old. Records show that there are currently 78 filings mentioning a professional called Mohamed Al Mazrouei. Below you'll find short descriptions of the two people sharing the Mohamed Al Mazrouei name we have information about. Complete information can be found above.

Mohamed Mubarak Al Mazrouei, of Manchester City Women's Football Club Limited (City Football Hq, 400 Ashton New Road, M11 3FF, Manchester) is a 38-year-old director that is mentioned in 77 filings. This Emirati national worked for 8 companies, to name just a few Manchester City Women's Football Club Limited, City Football Services Limited, and City Football Marketing Limited. This director worked with Khaldoon Khalifa Al Mubarak in Manchester City Women's Football Club Limited, Simon Pearce in Manchester City Women's Football Club Limited, John Theodore Macbeath, Alberto Galassi, Martin Lee Edelman.

There is another officer named Mohamed Mubarak Fadel Saeed Al Mazrouei at DirectorStats.co.uk (38 years old). This Uae citizen's work history includes holding the position of a director at Etihad Airways (New Airport Road, P.o.box 35566, Abu Dhabi). Since the appointment on 2009-05-07 we found 1 filing about this manager in the categories: officers (appointments).
https://www.cpc.gov.ae/en-us/thecrownprincecourt/CPC_Management/Pages/The_Undersecretary.aspx
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Very big, rich and influential family/clan the Mazrouei actually.. They pop up everywhere in Abu Dhabi and Dubai, I think the Emir is married to one of them as well.
 
This is how it feels to City
This is how it feels to be small....
 
Some brief comments on the financial report.

The operating profit has barely changed i.e. the increase in revenue has been eaten up by cost increases. Most of those cost increases are not down to items that vary directly with revenue: they largely relate to amortisation and depreciation, with the biggest increase being in the amortisation of transfer fees.

The main contributors to the £40m increase in top line revenue are match day and UEFA income. It’s a bit of a rough comparison, because it ignores variation in the number of home games, but match day revenue was up 21% against a 17% increase in stadium capacity; so they look broadly in line.

Revenue from UEFA rose by 86% (£30m), which just reemphasises the importance of doing well in that competition.

Commercial revenues 3% increase is pretty modest and one presumes the club are looking for much more from this line given that they include this percentage in their key performance indicators (KPI’s). I have no idea if sponsorship income is linked to league position but that might have held progress back. I am sure though that continued on field success will see this line continue to be an important contributor to revenue growth and improved profitability.

The important thing is that most increases in revenue now will either flow to the bottom line or be used to fund (even more) transfer spending. The club’s number of employees is stable, its staff cost to revenue ratio (another KPI) is good and even signing a Lionel Messi on £1m a week probably would not harm it much. The club’s cash flow shows no requirement for funding in the year and a relatively modest £20m outflow, which is particularly encouraging when the increase in trade debtors more than accounts for that use of cash (quite why trade debtors more than doubled I don’t know or whether that level will remain). The key point though is that the club appears to have reached a point where it has considerable discretion over how much to spend on transfers / players without Mansour having to dip into his own pocket to fund it.

Best run club in the world? Quite possibly.
 
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