City face uphill battle after UEFA cash warning

City made a £121.3 million loss in 2009-10 and can expect to make a further loss of at least £130 million for 2010-11 and, according to The Independent, UEFA has warned that their heavy transfer spending "cannot be written off as a loss on next year's accounts alone".

When UEFA's Financial Fair Play (FFP) regulations are fully enforced, clubs will be forced to break even, although benefactors - such as the City owners - are allowed to contribute up to £39.54 million for the 2013-14 and 2014-15 seasons and £26.36 million for the period covering 2015-16, 2016-17 and 2017-18.

City will have to spread the losses of their recent heavy spending over the length of the corresponding players' contracts, though, meaning they will have to cope with a £50 million loss at the start of each season, over and above any other spending on transfers and wages. The club made an operating loss of £55.1 million in 2009-10, largely due to wages, which is set to rise.

City's chief football administrator, Brian Marwood, recently said the big spending at the club was over and that the focus would now be on developing youngsters through the academy, but it appears that will not be enough to secure a place in the Champions League when the new rules are introduced.

UEFA's head of club licensing, Andrea Traverso, told The Independent that any attempt to wipe out the spending before the rules come into play would "be seen as a way to circumvent the rules, and that is not allowed".

Source: espnsoccernet.com