City post record revenues of £473.4million for 16/17

[Eslam elcity]

Can anyone explain the actual sources of the commercial revenues and their values ??

 

[Cityfan]

Can anyone explain the actual sources of the commercial revenues and their values ??

I have just listened to the excellent podcast which seems to give a very clear exposition of the accounts to a layperson like myself.
He does discuss the sources of the commercial revenue on them but as most of them are confidential the actual value of each one is uncertain, though it appears the Etihad deal MAY have increased but is probably still well within any arms length worth.

 

[Prestwich_Blue]

Can anyone explain the actual sources of the commercial revenues and their values ??

No. All we know is that it comes from a variety of sources. These include:

• sponsorships
• merchandise sales & revenue from the kit manufacturer
• revenue from use of the stadium and its facilities for conferences, concerts and other events

There's no breakdown of these at any level other than a total for all sources.

 

[Blue Maverick]

So how much do they make from seats? Would be interesting to know if they could reduce prices and how much a difference it would make.

 

[blueparrot]

So how much do they make from seats? Would be interesting to know if they could reduce prices and how much a difference it would make.

I am probably over simplifying matters and could be wrong, but by my way of thinking, with last years figures and the extra month we made a 1 mill profit with matchday takings of £54 mill, so if we had reduced prices by more than about 50 th we would have made a loss. So in the scheme of things while only a small part of our turnover it is still the difference between a loss or a profit. I could have the wrong end of the stick though.

 

[Prestwich_Blue]

So how much do they make from seats? Would be interesting to know if they could reduce prices and how much a difference it would make.

We can take a stab at that I think because up to 2012 I believe they reported hospitality revenue as part of Commercial income. The reason I say that is that in 2012 match-day revenue was £22m then shot up to nearly £40m in 2013. So the match-day revenue of £22m in 2012 was presumably just ordinary seats. Assume that went up 10% in 2013 meaning that in 2013 it was £24m and premium seat revenue was therefore £16m.

Let's assume prices have increased another third on average since 2013. That would put non-premium revenue around £32-33m, taking into account the extra seats added by the SS extension. But if that is the case then revenue from premium seats/executive boxes is around £20m, when it was £16m in 2012. If those estimates are right then the increase in premium seating revenue has been just 25% and means that we're subsidising them to some extent, rather than it being the other way round. That confirms my deep suspicion that they're struggling to sell what they've got at the prices they're asking.

 

[Prestwich_Blue]

I am probably over simplifying matters and could be wrong, but by my way of thinking, with last years figures and the extra month we made a 1 mill profit with matchday takings of £54 mill, so if we had reduced prices by more than about 50 th we would have made a loss. So in the scheme of things while only a small part of our turnover it is still the difference between a loss or a profit. I could have the wrong end of the stick though.

You're forgetting that it was a 13-month accounting period so expenses were higher than they would have been normally whereas revenue won't have been much different. City were saying that profits would have been about £10m higher had the accounts been prepared over a 12-month period.

 

[Thekinkygoat]

You're forgetting that it was a 13-month accounting period so expenses were higher than they would have been normally whereas revenue won't have been much different. City were saying that profits would have been about £10m higher had the accounts been prepared over a 12-month period.

So match tickets (ordinary) could have been cut in price by around 33% without making a loss?

 

[mrbelfry]

Quick question for the brains. When we have a cup game and we share gate receipts do we also share costs? Presumably we pay staff, police etc.

 

[meltonblue]

Although Match tickets could have been cut, I do think we need to be careful to not have our cake and eat it. None of our money is going to pay off interest or pay dividends, it's being reinvested in the playing squad and we are reaping the rewards as fans and there are plenty of clubs that have it far worse than we do in terms of pricing for what is effectively an inferior product.

Ticket prices are wrong across the whole of football. I can't see it changing when the demand is still there though, same with TV money.