Manchester City Financial Results 2023/24

Apart from Manchester United, which is a publicly traded company, Manchester City is the first Premier League club to release its financial results for the 2023/24 season.

While City awaits the outcome of the over 100 alleged breaches of financial regulations, the show goes on, reporting a record turnover of £715 million and a substantial profit of £73 million. This marks the fourth consecutive season of profitability for City, a notable achievement in a league where profitable seasons are rare. City has solidified its position as a financial powerhouse, leading the league in various financial metrics.

For this analysis, we will set aside the ongoing financial breach allegations; however, there is no denying that they cast a significant shadow over the club's success, both on and off the pitch.

On the pitch, City’s domestic dominance remained unmatched, securing a fourth consecutive Premier League title and finishing the season with a nine-match winning streak crushing Arsenal's title hopes. However, the pinnacle of their 2022/23 treble success could not be replicated, as they were eliminated in the Champions League quarter-finals by Real Madrid and suffered an FA Cup final defeat to their Manchester rivals.

Manchester City Overview of Financial Results 2023/24

Manchester City's financial statistics are impressive. In the 2023/24 season, they achieved a record Premier League turnover of £715 million, slightly exceeding the £713 million from their treble-winning season. The club remains consistently profitable, generating more profit over the past four years than any other club. Their net transfer spending is lower than all the other "Big Six" clubs. With no debt (they even lend to other clubs within the City Group) they hold the highest net assets in the league and boast a brand value of £1.4 billion.

However, they also have the highest salaries and wages in the league, which comes as little surprise, along with the highest reported total squad cost (although Chelsea is likely to surpass this once their results are released). Furthermore, their impressive profit figures in recent seasons have been driven largely by substantial profits from player sales.

Still, there is no doubt that in recent seasons, they have successfully translated their on-pitch achievements into financial success.

Manchester City Turnover

Aside from the Covid-affected year, turnover has consistently grown year on year in recent times. Following a treble-winning season, which resulted in maximum distributions from both the Premier League and UEFA, City still achieved a modest increase in 2023/24. Their record turnover of £715 million is impressive, surpassed only by Real Madrid, whose reported revenue for 2023/24 was €1,073 million—approximately 20% higher than City's. City's nearest domestic rival is their Manchester counterpart, who reported revenue of £662 million, about 8% lower than City's.

In the 2023/24 season, City hosted six fewer games at the Etihad compared to the previous year, yet still managed to increase matchday revenue from £72 million to £75.6 million. When accounting for domestic cup matches (where revenue is shared), this growth is driven by a 14% increase in revenue per paying fan, rising to £54.20 per fan per match. While still trailing behind the other "Big Six" clubs, as shown below, this is an impressive increase, especially considering that season ticket prices only rose by 5%.

Broadcasting revenue saw a slight decrease, from £299 million to £294 million. City's quarter-final exit in the Champions League led to a drop in UEFA distributions, from £114 million to £105 million. However, this decline is somewhat offset by City’s high UEFA co-efficient, which plays a significant role in revenue distribution. (The co-efficient is based on the last ten seasons of UEFA performance, and City remains at the top for 2024/25.) Domestic broadcast and media revenue, on the other hand, grew by £5 million, reaching £190 million.

City's commercial revenue, which has been growing at an average rate of 10% per year over the past five years, saw a more modest increase of 1% compared to the previous season. Despite this, it remains the highest reported commercial revenue in Premier League history, exceeding the nearest rival, Manchester United, by £40 million. The club has strong, long-term partnerships with UAE-based associates such as Etihad Airways, and also boasts 15 partners who have been with the club for five years or more. Other notable partnerships include Puma, Asahi, Nissan, and Kellogg's.

We can expect their commercial revenue to continue growing, especially with the completion of the major £300 million North Stand investment for the 2025/26 season. This project will create an "entire entertainment destination," featuring a 400-bed hotel, a sky bar, a club shop, a museum, and additional retail spaces.

Manchester City Staff Costs

City’s salaries and wages, totaling £413 million, represent a slight decrease from the previous year but still remain the highest in the Premier League. This is £50 million more than Manchester United’s, and only surpassed in Europe by PSG's last reported figures of a whopping €621 million.

With over £200 million invested in new players in each of the last two seasons, player amortization increased by £20 million to £165 million. This is lower than Manchester United’s £190 million and Chelsea’s £203 million in season 2022/23. When combining salaries, wages, and amortization, City’s total cost reaches £578 million, higher than United’s but likely below Chelsea’s. This represents 81% of revenue before accounting for profit from player sales.

In the 2023/24 season, City reported a club record £139 million in profit from selling Mahrez, Laporte, Palmer, and academy players such as Trafford, Forbes, and Charles. Generating profits from player sales, especially academy players, has been a key strategy for City over the past five seasons, during which they have earned over £400 million from sales. Without these profits, the club would have reported a loss in each of these five years, making player sales crucial to their continued profitability. Around 50% of these profits have come from selling academy players..

Manchester CIty Profit and Loss

The 2023/24 season marked City’s fourth consecutive year of reporting a profit, which is unmatched in the Premier League.

Their reported profit of £76 million is expected to be the second highest last season, behind Brighton, who are likely to report a significant profit from player sales.

As noted, City have relied significantly on player sales to generate their profits. If we examine their operating profit—before exceptional items like profit on player sales and interest payments—the picture changes. While only the two Manchester clubs have reported results for the 2023/24 season, we predict City’s operating loss, at 63 million will fall in the lower half, slightly behind United’s.

The key difference between City and United is that City’s high profits come from player sales, while United does not benefit as much from this. United also has substantial interest payments on their debt, whereas City has no debt.

It will be interesting to see in the coming season whether the strategy of selling academy players can continue, especially given the current form of both the team and some of their recent academy sales.

Manchester City Player Trading

City’s player investment has been relatively consistent over the past five seasons, ranging from £150 million to £226 million per season, totalling just under £1 billion over the five-year period. This is the second-highest in the league, behind Chelsea and slightly ahead of Arsenal and Manchester United.

Over the same five-year period, player disposals have totaled £570 million, again second only to Chelsea.

Net transfer spend (acquisitions less disposals) is £400 million over the five-year period. This would place City seventh in the ranking of highest net transfer spend, ahead of Liverpool but behind clubs like Aston Villa and Newcastle.

One could argue that City have made smart investments to achieve outstanding success with relatively moderate player acquisitions. However, the question now being raised is whether the strategy of academy player sales has left the squad lacking in fresh talent. Regardless, they should have the resources to address this issue.

This summer, their transfer activity was notably low, with Savinho being the only significant addition. On the other hand, they sold Alvarez, Cancelo, and academy players Harwood-Bellis, Delap, and Hamilton, generating a net transfer income of around £120 million so far this season. However, indications suggest that City are preparing to spend in the January transfer window.

Debt and Net Assets

City are one of the few clubs with no debt; in fact, they lend money to other clubs within the City Group, with loans receivable of around £275 million. This contributes to City having the highest net assets (total assets minus total liabilities) in the league.

Two notable figures on City’s balance sheet are their share capital and retained earnings:

• At £1.4 billion, City have the second-highest share capital, surpassed only recently by Chelsea. After the club was acquired in 2008, its growth was initially funded by debt, but this debt was converted into shares in 2012. The £1.4 billion in share capital plus the quoted £150 million acquisition cost is a good reflection of the total amount invested in the club by its owners. Whilst it may not have been the main driver of the acquisition by the Abu Dhabi United Group it has proved a great investment with a current market value quoted around £4 billion.

  
  

• Despite four consecutive profitable years, City still have negative retained earnings, with cumulative losses of £520 million. This figure peaked in 2020 at around £730 million and is surpassed only by Chelsea (£1.1 billion) and, surprisingly, Aston Villa (£584 million). Everton are also nearing this figure.

The below graph shows how these two key figures changed over time and shows the initial investment years and the financial success over recent periods. It also shows the club has required little additional investment since 2014.

Manchester City Financial Outlook

As of this report, City are currently 7th in the Premier League and 22nd in the newly formatted Champions League, just on the edge of play-off qualification. Success in either competition is still possible, but based on current form, it seems unlikely. This will impact broadcast and potentially commercial revenue and could result in a relatively small year-on-year decline in revenue. Profit from player sales will remain strong, with over £90 million generated from the summer transfers, so we expect a fifth consecutive profit to be reported for the 2024/25 season.

They are also proceeding with the £300 million investment in the North Stand, which is expected to further boost matchday and commercial revenue starting from the 2025/26 season.

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