Manchester City lost $150M in first season under Sheikh Mansour’s ownership

Man City loses $150M in season after buyout

MANCHESTER, England — Manchester City’s losses tripled to almost $150 million during its first season under Sheikh Mansour’s ownership, although he’s written off its debts to him to help comply with future UEFA regulations.

The member of Abu Dhabi’s royal family has invested $630 million since buying the heavily indebted club in August 2008, financial figures released by the club showed Wednesday.

Following the takeover, Sheikh Mansour immediately funded the purchase of Robinho from Real Madrid along with another large outlay in the January transfer window. That meant an operating loss of $54.7 million in the year ending May 31, 2009, soared to about $148 million when the massive investment in remaking the squad was taken into account.

“The financial results reflect a period of rapid change at the club, the result of long-term planning and investment by the board and our owners, to create a sustainable business in the future,” club CFO Graham Wallace said. “This transformation will take a number of years.”

Since the end of the financial year, Sheikh Mansour has followed the lead of Chelsea owner Roman Abramovich by wiping out debts to ensure Manchester City doesn’t breach UEFA controls, which could see clubs banned from the Champions League after 2012 unless they break even on soccer-related business.

Sheikh Mansour converted his approximately $487 million worth of loans to Manchester City into equity, while injecting about $143 million into the club by purchasing further shares.

“The owner’s decision to convert debt to equity is in line with their previously stated financial strategy,” Wallace said. “(The) club is now on a secure financial foundation that gives a tremendous platform to build from in future years.”

The figures don’t take into account transfers in the most recent window, including Carlos Tevez, Emmanuel Adebayor and Kolo Toure in an effort to break into the Premier League’s top four and qualify for the Champions League.

Manchester City, which fired manager Mark Hughes and replaced him with Roberto Mancini last month, is fifth in the standings, two points behind fourth-place Tottenham.

Sheikh Mansour bought the club from Thaksin Shinawatra for approximately $336 million after the ousted Thai prime minister fled his homeland amid corruption charges. Thaksin retained a 10 percent stake, which Sheikh Mansour bought in September.