Manchester City recently announced their annual financial report for the 2022/23 season and the whole football community was surprised when the Etihad Stadium team earned 712.8 million pounds in just one season, a record number. of the Premier League.

After completing the historic treble, Man City also achieved a profit of up to 80.4 million pounds – nearly double that of a year earlier.

The first Champions League championship in the team’s history brought Pep Guardiola’s team lucrative income from television rights, relationships with other commercial partners also received many positive signals. . If you look more broadly, this is the third year in a row that Manchester City’s revenue far exceeds its city rival, Man United.

However, these record numbers come at an extremely sensitive time for Manchester City. At the beginning of this year, there were allegations that Man City violated financial rules and they are currently under strict supervision over the source of investment funds.

Let’s analyze Manchester City’s financial situation at the present time and have a clearer view of how this team balances its finances.

Record revenue – £712.8 million

Man City’s total revenue has increased in all aspects and reached a league record, but what does that revenue include? Let’s clarify some of the income ranges announced by City in their financial statements.

Advancing in all competitions helps Erling Haaland and his teammates play more matches than in previous years. Specifically, in the 2022/23 season Man City has 4 more home matches than the 2021/22 season. These four matches helped City’s matchday revenue increase by £17.4 million and reach a total of £71.9 million for the season.

However, this source of revenue is only a small detail in the overall financial picture of the green half of Manchester. To achieve this 71.9 million pound revenue, Man City also had to spend huge sums of money to renovate Etihad Stadium and invest in services here to serve the audience coming to the stadium. Most of this team’s huge money comes from other sources of revenue, sources of income that they invest less money in.

Specifically, television copyright broadcasting revenue last season reached 299.4 million pounds, an increase of 50.4 million pounds over the same period. Reaching the final and winning the Champions League helped this club’s television rights skyrocket. But this is still not the strongest point in City’s financial story, instead commercial revenue is the key to making them so “rich”. Compared to the previous season, 2022/23 saw Man City achieve commercial revenue of up to 314.4 million pounds, an increase of 32 million pounds.

City has also reached sponsorship contracts with Japanese beverage company Asahi as well as bookmaker LeoVegas. Another Man City partner, 8XBet, is currently under close scrutiny following investigations by Josimar and Daily Mail into the background of this gambling company.

Partnerships with tire manufacturer Nexen Tire, cyber protection provider Acronis and LED display provider Unilumin were also extended.

City’s total revenue of £712.8m surpassed the £648.4m United reported last month, the previous Premier League record. City’s turnover has outstripped their historic rivals for three consecutive seasons.

Wages – £422.9m

However, that wasn’t the only Premier League record broken. Man City’s spending on wages increased significantly last season to £422.9m, up from £353.8m the previous year – an increase of £69.1m, an increase of almost 20%.

Another record for Man City, but this record is the amount of money they had to spend. Last season, the amount of salary and bonuses that Pep’s army received amounted to 422.9 million pounds, an increase of nearly 20% in just one season. This number also far exceeds the previous record belonging to Man United in the 2021/22 season with 384 million pounds.

According to the explanation, Man City’s consecutive championships have caused the bonuses to increase suddenly and reach a team record. Despite the records of salaries and bonuses, Man City’s salary-to-income ratio is still within UEFA’s allowable level and much lower than the limit.

Profit from player sales – £121.7 million

Generating income through buying and selling players has become one of Man City’s strengths over the past few years. The figure of 121.7 million pounds of profit continues to be another record for this team.

That number is only slightly less than the £123.1 million Chelsea earned in the 2021/22 season. The London team has the ability to buy and sell players extremely well and this contributes a lot to the budget. common to the whole club.

City is gradually following the model of Chelsea in previous years, the reigning Premier League champion has earned more than 330 million pounds from player sales in the past 5 years.

The majority of the £121.7m sum came from the departures of players such as Jesus, Sterling and Zinchenko. The young players who leave only contribute a small part of that and this money is often transferred to the academy instead of being included in the first team’s sales budget.

Last summer’s net spend – £84 million

These expenses are only until the end of the 2022/23 season, specifically only until June 30, 2023. Any expenditures that occur after June 30 will be counted towards the following season.

Man City had an exciting summer when they brought quality names to the Etihad Stadium on all three lines such as: Doku, Kovacic, Matheus Nunes and Gvardiol. On the other hand, they also have many names leaving and bringing back a significant amount of money: Mahrez, Palmer and Laporte are the ones leaving the blue shirt of Manchester.

In a note contained in these accounts, Man City revealed that their net spend on transfers before this season was around £84m.