Manchester City released its annual report for the year 2019-2020. The club has occurred a net loss of £126 million for the 2019-2020 season on Tuesday. The club is expecting to return to profits in 2020/21 due to a less COVID-impacted season and deferred 2019/20 sales.
On Tuesday, the club announced in an official statement to have published its Annual Report for 2019-20. The annual report includes an ‘unprecedented season’. Due to the global pandemic, the season was suspended between March and June. It was than later concluded in the 2020-21 fiscal year,
MAN CITY ANNUAL REPORT – NET LOSS
According to the announcement, Manchester City has announced an 11% decrease in turnover to the tune of £478.4 million, which the club attributes to revenue delays relating to just under a quarter of Premier League matches, as well as the later stages of the Champions League and FA Cup.
Furthermore, the comment highlights the effects of major player transactions, such as Leroy Sane to Bayern Munich, that have been delayed by the pandemic and do not feature in the 2019-20 accounts.
“Ticket and other stadium-related purchases stopped, season cards were refunded, and television profits were limited as a result of Premier League rebates granted to broadcasters,” – the club continues.
Manchester City continues to fulfill its full financial obligations despite the drop in sales. Man City is also offering assistance to workers and the local community.
Manchester City hopes to return to profitability this season, despite the £126 million loss, the club stated.
“The estimated net loss for the 2019-20 season is £126.0m. The loss was because of these exceptional pandemic causes. However, the club anticipates returning to growth instantly in 2020-21. This would be a consequence of a fewer COVID-impacted season and postponed 2019-20 sales. The expected normalized losses for both of the 2019-20 and 2020-21 seasons will be less than £60m per year.”