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Looked upon City with mocking contempt rather than as an enemy saving their true loathing for Liverpool and Leeds United behind the scenes things were even worse whilst City fans were excited at the start of the 2007 2008 season at the prospect of new tie owner Texan Shinawatra's promises of big spending and success an investment in the likes of Rolando Bianchi Felipe Caicedo and Alana didn't prove to be successful and the money from the new owner came from unreliable sources city borrowed 46 million pounds in one year if Shinawatra zone ership whilst borrowing money has
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some benefits these loans came at a price as city's interest costs more than doubled to ten point seven million pounds the acquisition of the club by Sheikh Manso in September 2008 safe City in more ways than one and by this stage Shinawatra had more pressing issues to deal with in the form of corruption charges from his homeland Manso transformed city with an initial scattergun spending policy on marquee signings such as Robinho and an audacious attempt to sign Kaka at

this time transfer fees and wages were an irrelevance to the owners this impacted on city's financial performance which moved from a profit of 17 million pounds in 2006 to a loss of 190 million pounds in 2011 these losses were sustainable because Sheikh Mansour was willing to underwrite the losses through a combination of interest-free loans and shares had financial Fair Play rules.
been in existence at the time than the investment would not have been possible this allowed the Abu Dhabi owners to pump nearly 1.2 billion pounds worth of cash into the club the owners huge investment startled the existing elite of European football who now saw City as a potential threat to their cartel at the top table of UEFA competitions these established clubs put pressure on Platini the UEFA president to introduce some method of reduce the rise of new money clubs such as Chelsea city and PSG after much internal haggling and huge amounts of money being spent on accounting and legal fees by UEFA Financial Fair Play rules relating to non-payment of transfer fees were introduced in 2011-12 and then extended in the 13-14 season in the form of a break-even model these rules are now so complex that the latest version takes up to 116 pages of legal and accounting pontification, UEFA claim that FFP can be summarized in one sentence financial fair play is about improving the overall financial health of European club football and we were described that one sentence in one word and that word is nonsense businesses go bankrupt due to a lack of cash not profit which is an arbitrary accounting concept open to sleight of hand estimates and manipulation the initial rules restricted clubs losses 245 million euros over three years ending in that period and then 30 million euros from 2015-16 a break-even model calculates losses as income less expenses clubs have three main sources of income matchday broadcasting and commercial it's difficult but not impossible to manipulate matchday income which is the number of tickets sold multiplied by the ticket price and the same is true for broadcast income which is negotiated and distributed centrally by individual leagues and uf4 itself commercial income is different as it represents deals signed by clubs and.
their business partners the prices for these deals are open to negotiation in the years prior to the Abu Dhabi takeover city's commercial income was far less than their rivals from Old Trafford whose ability to negotiate deals in the back of their popularity and success was ruthlessly exploited by unites American owners this is where eyebrows had been raised in relation to Manchester City Etihad Airways the national airline of Abu Dhabi the place Thomas Cook as shirt sponsor in 2009 this had an immediate impact on city's commercial revenues which increased by 126 percent in 2011 the Etihad deal was expanded to include naming rights for what had previously been known as the city of Manchester Stadium which became the Etihad Stadium along with surrounding training facilities called the Etihad campus the agreement was for 10 years at an estimated value of 400 million pounds which included shirt sponsorship as well as the name lies at the time the largest fee for naming rights was just 2.8 million pounds per year by Arsenal for the Emirates and other clubs had tried and failed to secure high-value sums from sponsors the accusation leveled at City is that the Etihad deal has been used to reduce the club's losses and help it in satisfying financial Fair Play rules because of the Etihad Deal city's commercial income initially matched that of United but has subsequently fallen behind as their rivals have managed to partner themselves with everyone from Japanese track to partner Yanmar to mattress partner milli city's partnership with Etihad does however mean that they have the second highest amount of commercial income in the Premier League and the 5th largest of any football team globally such was the extent of the Etihad deal that there were accusations of financial doping from the likes of arson Venga UEFA had tried to minimize the impact of deal signed by clubs with organizations connected to the owners through the related party transaction rules a related party is one that is controlled
by the club owner or a close relative in addition UEFA have set up a club financial control body to ensure that clubs do not overstate the value of commercial deals city tried to set up their deal with Etihad in such a way that it complied with financial fair play rules but such were their losses they were put on the FFP naughty step in 2014 with the following penalties a forty nine million pound fine part of which was conditional on improving the club's business model City Julie received a rebate of two thirds of this sum an agreement not to increase the wage bill excluding bonuses for two seasons a squad reduction for UEFA competitions from 25 to 21 players and a reduction in the amount spent on player signings limited to a net 49 millionmpound spend City managed to comply with the sanctions and kept their wage bill which had been 36 million before Shinawatra in 2007 and zoomed to 233 million by 2014 in check until Pep Guardiola arrived PSG were given a similar fine in what was seen as a victory for the existing elite of European clubs clubs can however dispute any rulings for the CF CP and this is likely to trigger a long and expensive legal action where the winners will be the accountants and the lawyers in 2015 under pressure from you guessed it a series of lawsuits from unhappy club UEFA relaxed the ffp rules this has allowed the likes of city and PSG to spend money more freely the city and Etihad partnership was born to an extent out of necessity on the part of the club to satisfy you a firs financial Fairplay rules if the value of the deal initially was excessive given the global position and reputation of city in 2011 then today with the club having won the Premier League three times the four hundred million pound deal which has been renegotiated since its original signing is probably about right for Pep Guardiola's team in the current market