Manchester City capped off a remarkable 2021/22 season by claiming their second Premier League title in three years. But that wasn’t the only area where the team succeeded. According to a SportingPost.com report, Manchester City also topped the 2021/22 global Clubs’ Operating Revenue rankings. Its record-breaking €731 million return represented a 13% jump from its 2020/21 figures, enabling it to retain the top spot for the second season running.
City’s returns saw it narrowly edging out Real Madrid, who had total revenue of €714M during the same timeframe. Paris Saint-Germain (PSG) came in third place with an income of €670M, while Bayern Munich closed out the top four with €627M. The report also shows all the champions of Europe’s most prominent leagues, bar Portugal’s Porto, registered increased earnings.
City’s Shrewd Management
According to SportingPost’s CEO Freddie Smith:
City’s impressive revenue achievement is a testament to its shrewd financial management and strategic decision-making, which have allowed it to remain competitive on the world stage while other teams struggle.
SportingPost’s CEO Freddie Smith
He singles out the team’s record commercial revenue, which shot up 21% year-on-year to an eye-watering €373M, as pivotal to the team’s incredible returns. This surge in commercial revenue was due to several lucrative sponsorship arrangements, including agreements with PUMA, Etihad Airways and NEXEN, among others.
City’s success in generating commercial revenue can also be credited to its strong digital presence. The club currently has around 130 million worldwide followers across all major platforms such as Facebook, Instagram and Twitter. This strong fan base has allowed it to leverage its brand recognition and engage more effectively with potential sponsors.
But it wasn’t just money coming into the club that contributed to its high operating revenue figure. City’s efficient financial management also minimised costs across all areas of its operations while still maintaining quality on the pitch. That’s evidenced by its staff cost-to-operating ratio standing at 57% after falling by five percentage points which is no mean feat for a club of City’s stature.
Netting Profits
Manchester City also topped a successful 2021/22 season by registering a €48M after-tax profit. These, again, were the highest net profits the club has achieved in its history. To put City’s figures in perspective, Porto, the second most profitable champion across Europe’s eight most prominent leagues, posted a net profit of €21M. Real Madrid and Bayern Munich returned profitabilities of €13M and €9M, respectively.
On the flip side, PSG registered the largest net loss of the eight teams (€369M). The signings of Lionel Messi, Gianluigi Donnaruma, and Sergio Ramos, plus the renewal of Kylian Mbappe’s contract, contributed significantly to the Parisian side’s disappointing returns. That loss saw PSG fail to comply with UEFA’s break-even regulations incurring a €65M fine from the body.
