That's rich! Manchester City owner Mansour writes off club's £305m debts

06 January 2010 11:14
Manchester City owner Sheik Mansour has sensationally wiped out the club's £305million debts. [LNB]After Roman Abramovich pulled off a similar stunt at Chelsea last month, the mega-rich Abu Dhabi businessman - whose estimated worth is £560billion - has transformed the club's huge debt into equity.[LNB] Party time: High-flying Manchester City are now debt free[LNB]Enlarge Delight: A fake banknote celebrating the Sheik's investment at Man City[LNB]The release of City's yearly financial figures - that came peculiarly late last night - underlined how far they have to go if they want to take their rivals' Barclays Premier League crown. [LNB]City were bought by the Sheik Mansour's Abu Dhabi investment company in August 2008 and have subsequently spent more than £200m on players in a bid to break into the Premier League's top four. [LNB]With their revenue streams not greatly different from previous years - City have not yet had the benefit of Champions League income to bolster their finances - the world's richest football club lost £92.6m for the financial year ending May 31, 2009. [LNB] Expensive: Robinho and Carlos Tevez were costly acquisitions[LNB]'The financial results reflect a period of rapid change at the club, the result of long-term planning and investment by the board and owners, to create a sustainable business in the future,' said City's chief financial officer Graham Wallace. [LNB]Splashing out: Sheikh Mansour[LNB]'The owners' decision to convert debt to equity is in line with their previously-stated financial strategy and is fantastic news for supporters of Manchester City, whose club is now on a secure financial foundation that gives a tremendous platform to build from in the future.'[LNB]The Sheik's outlay is down in a document filed at Companies House on Christmas Eve. [LNB]The £305m includes some debt he inherited when buying the club from Thaksin Shinawatra, as well as the purchases of star players like Robinho, Carlos Tevez and  Emmanuel Adebayor.[LNB] Manchester City's financial figures reveal staggering cost of fighting Fergie...£92.6mMan City will tear your Old Trafford banner down, vows new boss ManciniRoman's £340m Christmas gift: Chelsea owner Abramovich writes off huge debtMANCHESTER CITY FC

Source: Daily_Mail