This article by Paul Kelso in the Telegraph is a far better and balanced piece of journalism. Read this for a far better perspective on the whole situation at City:
"Three ways for Manchester City to fix the price of their success
On the front of Manchester City’s annual review, Vincent Kompany and Pablo Zabaleta are pictured following the 2010 FA Cup final clutching a flag: “Winners,” it says.
Buried inside is the price of that success. City's first trophy in 36 years came in a season in which the club lost £197.4 million.
The staggering hit on Sheikh Mansour bin Zayed al-Nahyan’s resources came despite revenues rising to a club-record £153 million. Wages alone eclipsed that by £21 million. Add a £156 million transfer spree and £34 million in written-off contracts — City taking out the trash before the new rules kick in — and you have a record loss for an English club.
City’s aim is to make the FA Cup the first of many prizes, but they have to do it without breaching the Uefa Financial Fair Play regulations designed precisely to stop their sugar-daddy fuelled success.
City have three obvious options. One, they can earn more. Two, they can spend less. Or three, try to do a little of both.
Option one is achievable. The Champions League will add at least £25 million, and a new sponsorship deal with Etihad should add another £35 million, though Uefa will examine whether this deal is inflated to get round its rules. So revenue this season should exceed £200 million.
Option two is far, far harder. In three seasons, wages at Eastlands have more than doubled, from £82.5 million to £174 million. Reversing that trend is unrealistic, with the arrival of Sergio Agüero, Samir Nasri, Gael Clichy and Stefan Savic since these figures were compiled.
So costs are almost certain to exceed income again this season, the first to count towards the new FFP rules. By how much will depend on Roberto Mancini’s ability to resist reaching for the chequebook.
City’s best hope, and their obvious intention, is to explore option three.
There is certainly enough room for interpretation in the FFP rules to offer them encouragement.
To start with they can lose £38.5 million in total over the next three seasons, including this one, and not face punishment. These results suggest that will be used up in one season.
But Uefa will also treat clubs more lightly if they are showing the correct “direction of travel” over the monitoring period ending in 2014-15. If losses are coming down, they will be treated leniently.
Youth development and infrastructure can also be written off from the break-even calculation, so expect accounting of the Etihad deal to be tilted in favour of support for the academy scheme. But Uefa will look hard at such deals to ensure they are not benefactor payments from Abu Dhabi passed off as commercial contracts. Etihad is controlled by Sheikh Khalifa, Sheikh Mansour’s brother. Uefa may well start there."
Nothing to see here. Move on.
