manchester city cf, annual report 2012/2013

7/27/2019 Manchester City CF, Annual Report 2012/2013

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MANCHESTERCITY

ANNUAL REPORT201213


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CONTENTS

INTRODUCTION 02FOOTBALL 06FANS 22COMMUNITY 40COMMERCIAL& OPERATIONS 54FINANCIAL REPORT 74

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MESSAGE FROMTHE CHAIRMAN

n the 2012-13 season, Manchester City reinforced its placeas one of the leading Clubs in Englis h football with second

place finishes in the Barclays Premier League and the FACup. While our performance in the UEFA Champions Leagueremained below expectations, the Clubs ongoing success indomestic competitions has generated significant commercialopportunities for the organisation and underpinned a s trongmomentum for the years ahead.

We have every reason to be optimistic. The core group ofplayers we have assembled in recent years has shown thatt has what it takes to prevail in the most challenging of

circumstances. With the arrival of Manuel Pellegrini andthe further strengthening of our squad, Manchester Cityhas entered the 2013-14 season with a renewed sense ofconfidence for the future.

The Club has made no secret of the fact that winningchampionships is at the heart of its strategy. However, we arealso seeking to create teams that play creative, entertainingfootball, and at the same time to continue to build a sociallyresponsible and commercially successful off-field operationto harness the opportunities generated by our on-pitchperformance. That is the model for a successful andsustainable football club and it is one we continue to pursuen all aspects of our operations.

Rapidly expanding our global presence remains a priority.With that in mind, this year the Club made its first major movento football outside Europe, partnering with the New York

Yankees to establish a new MLS team i n New York City. Thiss an important development. Football is one of the fastest

growing sports in the US and establishing a team in New York

another great city with a rich sports culture representsa powerful commercial opportunity.

However, success in Manchester remains at the heart of ourplans. That is why during the 2012-13 season, His Hi ghness

Sheikh Mansour bin Zayed Al Nahyan approved a potenti alexpansion of the Etihad Stadium, the commencement ofconstruction on the City Football A cademy (CFA), the Clubsformal backing of Manchester City Ladies Football Club and afurther strengthening of our youth development capabilities.

We are already seeing results from investment in our Academyin recent years, with both our U13 and U14 sides winning nationalchampionships in 2012-13. The development of homegrownyouth talent into first team players a stated aim at the time ofthe Clubs acquisition remains an achievable ambition in theyears ahead.

In this review of 2012-13, it is important to acknowledge ourformer first team manager, Roberto Mancini, and thank himonce again for the lasting contributions he made t o the Clubduring his tenure.

Looking ahead though, the message is clear. The Clubsambition for the 2013-14 season is to bring silverware tothe Etihad Campus. We have the squad, the management,the fans and the organisation to achieve good outcomes inall competitions. Importantly, we also have a new level ofconfidence tempered by the disappointment of last season.As a Club we now know what it takes to win and I believe thatwe are more motivated and capable than ever of doing so.

Khaldoon Al MubarakChairman

NTRODUCTION

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CHIEF EXECUTIVESSTATEMENT

n last years Annual Report I described Manchester Cityas a Club on the verge of a historic transformation. Today that

transformation is well underway and moving at a fast pace.The Club continues to grow while maintaining a path tosustainable profitability.

Naturally, there have been some challenges. Our footballresults in the 2012-13 season were below expectations. It isthe nature of sport and particularly of the highly competitivePremier League that staying on top requires continualmprovement. Our football did not improve during 2012-13

and this was reflected in our on-field results.

Quickly bouncing back from that experience, Manchester Cityhas entered the 2013-14 season with a new resolve. We arevery satisfied with the improvements that were made to ourfirst team squad in advance of the season. This strengtheningwas carefully planned and efficiently executed and hasgiven our new manager, Manuel Pellegrini, the opportunity tomanage what we believe to be one of the best squads in Europe.

However, recruitment is only part of the picture. We are workingvery hard to continue evolving the way football is played atManchester City, to share football concepts, style andphilosophy at all levels of the Club and eventually developplayers from our youngest sides all the way into our first team.

Our view is that if the Club plays good football and cultivatesa strong and consistent football philosophy at all levels, resultswill follow. This process takes time, but the foundationshave been put in place. And, with the landmark City FootballAcademy (CFA) due to open in advance of the 2014-15 season,our youth development and training capabilities will soon beamong the best in the world.

Manchester City has also made a number of improvementsto its commercial strategy and organisation. This has includeda significant expansion of our commercial partnerships teamthat has enabled us to better meet the needs of our existingpartners while establishing new relationships around theworld. We have also invested significantly in the digitalcontent area, with new offerings for our fans and excitingdevelopments to come.

The Club has also continued to invest in its infrastructureand match day capabilities. The addition of WiFi to the Etihad

Stadium will enable us to radically improve the experience ofwatching football for our supporters. We are als o conductinga public consultation on the potential expansion of the EtihadStadium to a capacity of 5 4,000 and in time up to 60,000.I believe these initiatives will strengthen the reputationof the Etihad Stadium as one of the bes t venues in Englandand in Europe.

Financially, the Club continues to improve. Growing revenuesand controlled expenses are bringing the Club to breakeven inthe immediate future and profitability thereafter.

There have also been some changes to the organisation andmanagement structures. Most notably, the new City FootballGroup (CFG), established this year will now oversee theoperations of Manchester City Football Club, ManchesterCity Ladies Football Club, the newly established New YorkCity Football Club and other potential future initiatives. Thisstructure is designed to ensure that each of these entities candraw upon the world-class football and commercial capabilitiesthat exist within the City family.

Alongside growth in Manchester Citys profile around theworld, the Club has maintained its long-standing commitmentto the local community. This commitment to the communityhas always been, and will remain, at the heart of our missionas a football club.

Manchester City is a modern football Club with an identitythat has been indelibly shaped by its experiences over morethan a century. Through the ongoing commitment of theownership, employees and partners and t he unwaveringsupport of our fans, we have an incredible opportunity tocontinue to grow at pace, while staying t rue to the essenceof who we are.

Ferran SorianoChief Executive Officer

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NTRODUCTION

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01.

FOOTBALL

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The 2012-13 season was one of mixed results. Most notably,the Club did not repeat its historic success in the BarclaysPremier League and fell j ust short of winning the FA Cup.However, there is much about our domestic per formance togive us confidence. In the last three years alone, the Club hasachieved three top three finishes in the Barclays PremierLeague, reached two FA Cup finals and won both of theseprestigious competitions for the first time in decades.

While results at home have reinforced our place at the highestevels of English football, the Clubs performance in the UEFA

Champions League was disappointing. We failed to proceedpast the group stage for the second year running and did notmeet the targets we had s et at the beginning of the season.

The Clubs priority for the year ahead is to maintain itsperformance in domestic competitions delivering silverwaren the process and to significantly improve its performance in

Europe. With that goal established, the Club enters the 2013-14season with a new manager, a strengthened squad, and a beliefthat it can compete to win every competition it plays in.

Youth development remains the key long-term priority of thefootball department. This season the Club has continued therollout of its Academy Development Plan. Our results at youthevels are particularly promising, with both our U13 and U14

sides crowned national champions in the 2012-13 season.These sides include some of the first Academy scholars tobenefit from the full-time education opportunities providedby the Club an initiative that has significantly expanded thecoaching contact hours we are able to deliver while ensuringour players receive a quality education.

OVERVIEW

Our development capabilities at the critical 18-21 year oldstage have also received a significant boost with Patrick Vieiraassuming responsibility for the Elite Development Squad.The pathway from our development system into the first teamremains strong with five EDS players making their first teamdebuts in the 2012-13 season.

With highly promising results in our younger age groups andthe landmark City Football Academy to open its doors in2014, it is our expectati on that the number of homegrownplayers making their first team debuts will only increasein the years to come.

The Club has also made an important commitment to womensfootball in the UK during 2012-13 with Manchester City LadiesFootball Club (MCLFC) with whom the Club had an existingrelationship becoming an official subsidiary of the widerorganisation. MCLFC has also been admitted to the toptier of an expanded FA Womens Super League that willcommence in 2014.

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Clean sheets for Joe Hart, who was awarded the Premier

Leagues Golden Gloves for the third season running

Active internationals in first team squad more thanfor any other team in Europe

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A STRONG AND COMPETITIVEFIRST TEAM SQUAD

Manchester City f inished second in the Barclays PremierLeague for 2012-13 and qualified for the UEFA Champions

League in 2013-14. The Club has now finished in the topthree for the last three seasons running.

Pablo Zabaleta was one of the four defenders namedby the Professional Footballers Association (PFA) inits 2012-13 Premier League Team of the Year.

The Club were runners up in the FA Cup after conceding alate goal in the Final at Wembley Stadium. We have nowreached the FA Cup Final twice in the last three seasons.

On the back of our success in the FA Cup i n 2010-11 andthe Barclays Premier League in 2011-12, Manchester Citywon the FA Community Shield in August 2012.

34 goals conceded the best defence in thePremier League

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CASE STUDY: MANCHESTER CITYHOME GAME AGAINST REAL MADRIDMEDIA INTEREST IN

MANCHESTER CITY

Manchester City s home UEFA Champions League gameagainst Real Madrid attracted the greatest global media

interest of the season for the Club. 16 live commentary teamswere present at the Etihad Stadium, al ong with around 200journalists and photographers, and a further 200 crew toprovide the pictures that were transmitted around the world.

The first t eams success in recent years has driven greaterTV coverage and viewing of games involving Manchester Cityin the UK and around the world. The total number of hoursof global broadcast coverage of games i nvolving the Clubacross all competitions r ose by 5% year-on-year, and hasmore than quadrupled since 2009-10.

Total hours of TV coverage of games featuringManchester City overseas (thousands)

Source: Repucom

17hrs 66hrs 73hrs 77hrs2010-11 2011-12 2012-132009-10

10

60

20

70

30

80

40

50

Crew from Sky

200

30Radio journalists

Print journalists

110

City on TV: changes since 2008-09

Increase in number of live gamesfeaturing Manchester City shownon UK TV across all competitions

Increase in global TV audience for live PremierLeague games featuring Manchester City

57%

133%

Increase in UK TV audience for live PremierLeague games featuring Manchester City

103%

LiveCommentaryTeams16

Deutschland

Deutschland

Italia

Norway

Denmark

Photographers

58

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FOOTBALL


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A WORLD-CLASSSQUAD FOR 201213

FOOTBALL

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Stablisation of the first team continued in 2012-13, with thesquad size falling for the second successive season, while

net transfer payments were lower than at any time since2008-9. The Club added six players to its first team squad(Matija Nastasic, Maicon, Richard Wright, Javier Garcia,Jack Rodwell, Scott Sinclair). Six players were sold(Emmanuel Adebayor, Mario Balotelli, Nigel De Jong,Stefan Savic, Vladimir Weiss, Greg Cunningham), anda further three were released (Michael Johnson, OwenHargreaves and Stuart Taylor).

STABILISATIONOF SQUAD

Expenditure on newplayers was at the lowestlevel since 2008-9and proceeds fromthe sale of players atthe highest level over

this period

First Team Player Transfer Activity

Millions

Transfer Fees Paid

Source: Manchester City

2009-10 2010-11 2011-12 2012-132008-09

20

120

40

140

60

160

180

80

100

138m

15m 13m24m 21m

39m

145m

165m

90m

72m

Transfer Fees Received

FOOTBALL

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The Academy providedalmost 2,000 playerhours of coachingper week in 2012-13 22% more than in the

previous season

Weekly coaching hours for eachage group in Academy

Under 9s, 10s & 11s Under 11s, 12s & 13s

U nd er 14 s, 15 s & 16 s Un de r 18s

8hrs1/3 11hrs1/3

14hrs12hrsSource: Manchester City

Manchester City considers a holistic approach vital to thedevelopment of players, coaches and teams at all levels.

Our Elite Development Squad (EDS) remains the keystepping-stone from our Academy to the first team, and thisseason two players from our development system (JrmyHlan and Marcos Lopes) made their competitive firs t team

debuts. Ten academy players graduated to the EDS in2012-13, up from six players the seas on before.

In May 2013 it was announced that Patrick Vieira would beheading the EDS in 2013-14. We expect this appointment toinspire our most promising players and help bring out theirbest at a critical time in their careers.

A HOLISTIC APPROACH

FOOTBALL

The sale of a number of Academy graduates (GregCunningham, Vladimir Weiss, Ryan McGivern) also generatedadditional revenue for the Club during 2012-13 while enablingsome talented young players to accelerate the developmentof their careers.

In August 2012, the Club formally welcomed Manchester

City Ladies Football Club (MCLFC) with whom we hadan existing relationship as a full subsidiary of the widerorganisation. MCLFC has also been admitted to the toptier of the expanded FA Womens Super League that willcommence in 2014 and be broadcast on BT Spor t.

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180 players in theAcademy acrossall years a 30%

increase over thelast two seasonsGeographical split of Academy playersin 2012-13 season

72% of players in MCFCs Football Academyare drawn from the local area

36%36%28%OTHER

GREATERMANCHESTER MANCHESTER


ROLL-OUT OF ACADEMYDEVELOPMENT PLAN

The Club has continued the roll-out of its Academy DevelopmentPlan, boosted by our recognition as a Category One Academy

under the Premier Leagues Elite Player Per formance Plan(EPPP) in August 2012. Investment in our A cademy in recentyears is already producing impressive results: both our U13and U14 sides won national championships in their PremierLeague Tournaments during 2012-13, while the U12s wereunbeaten throughout the season.

Manchester City s partnership with St. Bedes College wasexpanded in 2012-13 to cover the U15s as well as the U14s.As a result, the number of Academy scholars attendingSt. Bedes increased by 117%, from 18 to 39.

We remain focused on providing a developmental pathway forcoaches with our U16s coach becoming an Assis tant Coach

with our U21s, and our U13s coach taking over the U18s. In Septembe r 2012, the Club announced the appointment

of a contractor for the construction of the City FootballAcademy (CFA). Due to come on line in advance of the 2014-15season, the CFA is expected to transform the Clubs youthdevelopment capabilities, make the Etihad Campus an evenmore attractive destination for the worlds most promisingplayers and coaches, and bring all of the Clubs operationsonto a single site.

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02.

FANS

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The Clubs historic Barclays Premier League triumph in 2011-12helped generate significant demand for member ships in 2012-3 with our capped allocation of 36,500 Seasoncards sold out.

Furthermore, attendance figures remained strong with 18 outof 19 Premier League home games sold out, ensuring a vibrantatmosphere inside the Etihad Stadium throughout the seas on.The Clubs attendance record for the year was 47,386 for ourmatch against Everton and a new record was set for matchreceipts and hospitality revenue generated during a single game.

Despite increased demand for tickets and memberships, theClub has maintained its commitment to affordable pricingfor its supporters and still offers an adult season ticket atthe competitive price of 275 the second cheapest seasonticket product in the Premier League. At the same time, wehave greatly improved aspects of the match day offering,nstalling free WiFi in the Etihad Stadium (due to be operationaln January 2014), creating new hospitality spaces and

establishing a groundbreaking catering partnership with chefJamie Oliver in advance of the 2013-14 season. The opening ofthe Metrolink in February 2013 has also made transport to andfrom the Etihad Campus far more efficient for our supporters.

The Club has continued to produce and distribute high-qualityonline, video and social media content. During 2012-13, theClubs English-language website attracted more than 32million visits, while visits to our Arabic website rose by 28%.Over the year, we saw a shift from PCs to mobile devices, andfrom Manchester Citys own website to the Clubs presence onsocial networks. Our new mobile site generated 6 million visits,while the official Manchester City YouTube channel attracted60 million video views (an increase of more than 100% on theprevious year), helped along by the squads Harlem Shake thatwas viewed a record 8.5 million times. The Clubs FacebookLikes rose by 89%, and Twitter followers increased by 179%.

Manchester Citys official channels on digital and socialmedia platforms generate significant traffic from overseas.Also consistent with our ambition to accelerate growth in theManchester City fan base around the world, there were almost5,000 members of our SkyBlue programme for City supportersn the UAE by the end of the season while our Abu Dhabi Schoolof Football had doubled in size during the year.

OVERVIEW

FANS

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On the back of our historic Premiership vict ory in 2011-12,the Club sold out its full allocation (36,500) of Seasoncards

for 2012-13. These included a range of options tailored tothe preferences of individual supporters and a new youthmembership, named CityKicks, launched in August 2012.The Club has also sold out its expanded allocationof Seasoncards for the 2013-14 season.

There was also a significant increase i n take-up of theSkyBlue programme for City supporters in the UAE, createdin partnership with Etihad Airways. Total membership stoodat just under 15,000 by the end of the 2012-13 season, anincrease of more than 50% on the year be fore. OutdoorFanzone events launched in 2012-13 proved very popularevents for the SkyBlue members.

There has been significant uptake in the purchasing oftickets online during 2012-13. In addition, through a newpartnership with Viagogo announced in August 2012 (thatincludes an annual 25,000 donation to a charity chosen byCity in the Community), our Superbia and Platinum membersare now able to exchange their tickets for matches they areunable to attend.

At tendance was strong during 2012-13 with 18 out of 19home league games and all of our home FA Cup games soldout. The stadium had an average 99% occupancy rate forBarclays Premier League games during the 2012-13 seasonwith the vast majority of tickets for home Premier Leaguegames selling out within days of sale. The highest attendancefor the season was 47,386 for our match against Everton inDecember 2012. Hospitality and premium seating was popularthis year with the Club needing to use off-site locations to

meet surplus demand on bigger match days.

MEMBERSHIPSAND TICKETS

Manchester Cityoffered thesecond-cheapestadult seasonticket in thePremier League

MCFC MEMBERSHIP2012-13

4hours

Cheapest and most expensive season ticket prices in 2012-13 season

Source: BBC Sport (Price of Football Survey 2012)

CheapestClub

ManchesterCity

MostExpensive Club

CheapestClub

ManchesterCity

MostExpensive Club

Cheapest season ticket Most expensive season ticket

Sources: Manchester City

42.9 45.5 45.9 47.02008-09 2009-10 2010-11 2011-12 2012-13

40

45

41

46

42

47

43

44

48

Average league attendance at Etihad stadium(thousands)

47.0

255 275 985 310 695 1,995

Time taken for new 2012-13 Seasoncardsto sell out on the opening day of sale

FANS

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Averageattendancesof over 42,000for cup games,up 7% on theprevious season

MATCH DAYEXPERIENCE

In October 2012, Manchester City recei ved the Best FanInnovation award from Visit Football for City Square and the

Family Stand, which the judges describ ed as a benchmarkfor football clubs. Regular City Square visitors spent onaverage 26 minutes in City Square to enjoy the pre-matchentertainment before entering the stadium on match daysduring 2012-13, up from 21 minutes in the 2011-12 season.The Club made another innovation this year through theintroduction of its Playmakers who were appointed towelcome, assist and entertain visitors to the Etihad Stadium.

During 2012-13, the Club replaced the former Boardroomsuite with the Connell Club (which has now evol ved intothe Chairmans Club for the 2013-14 season), refurbishedthe Mancunian Suite, created three new experiential boxesin partnership with Richard Mille, EA Sports and EtihadAirways, renovated the press desks in the Etihad Stadium,and greatly expanded our stadium tour offerings.

The opening of the new Metrolink in February 2013 hassignificantly improved access to and egress from the EtihadCampus, with capacity to carry 3,000 passengers per hourpost match. To help build the match day atmosphere, thetrams feature the voices of Manchester City players makingon-board announcements to and from the Stadium.

In M ay 2013 the Club announced an agreement with O2for the installation of a high-density WiFi network for theEtihad Stadium the first of its kind in the Barclays PremierLeague and the introduction of new technology to improvemobile phone connectivity on match days. In additi on tokeeping fans connected, the WiFi network will enablethe Club to deliver innovative content and services to its

supporters, beginning with live video and event informationthrough StadiumVision Mobile.

The Club has also installed more than 350 new digitaldisplay boards supplied by LG throughout the EtihadStadium that will improve the ways in which we candeliver information to our guests.

FANS

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12%M an ch es te r Ci ty Fa ns Av er ag e fo r f an s o f a ll

Premier League clubs

Source: Premier League Match Attender Survey 2012-13

M an ch es te r C it y f an s Av er ag e f or f an s o f a llPremier League clubs


82% 82%

Number 1s were

How welcome youare made to feelwhen you arrive atthe ground

Facilities for fansto bring children

Cleanliness1st 1st 1stSource: Premier League Match Attender Survey 2012-13

Number of unique fans attending a homematch at the Etihad Stadium across the season

Countries from which peoplecame to games at the Etihad Stadium

Average time a City supporter hasbeen a fan, the second longest periodin the Premier League

80,000

76

21Years

MCFC was rated in the top three for 10 out of 17statements on the live Matchday experience surveyedby the Premier League in its latest national fan survey

1st 1st 1st 2nd 2nd

2nd 3rd 3rd 3rd 3rd

94%

82% of MCFC match attenders are aware of theFan Zone and have visited it at least onceProportion of match attenders who have visited theirClubs fan zone

94% of MCFC match attenders believe the Clubmakes an effort to create a child-friendly environmentProportion of fans responding to Premier Leaguesurvey who agreed with the following statement aboutthe Club that they support: My Club makes an effort tomake the ground a child-friendly environment

52%Proportion of MCFC fans who went to a home gamethat live within 10 miles of the Etihad Stadium

FANS

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Almost half of Seasoncardholders in 2012-13have been membersfor the 10 years sincethe Club moved to the

Etihad Stadium

Manchester Citys recent success is a well-deserved rewardfor some of the most passionate and loyal supporters in the

Premier League. According to the Premi er Leagues MatchAttender Survey for 2012-13, the average City supporter hasbeen a fan of the Club for 20.9 years (joint second in thePremier League) while, according to the Clubs own data, ourseason ticket holders have been members for an average ofseven years. In 2012-13, 46% of our members had been seasonticket holders for the entire ten years that the Club has been atthe Etihad (formerly City of Manchester) Stadium.

Support for City i s growing. According to the PremierLeagues Football Nation Survey for 2012-13, support forManchester City has doubled in the two seasons since2010-11. Today, 4% of UK football fans suppor t ManchesterCity and the Club is the 7th most supported in the PremierLeague. Local supporters continue to form the heart ofManchester Citys fan base: more than half of all City fanswho went to a home game in the 2012-13 season live w ithin10 miles of the Etihad Stadium. The Clubs global appeal hasgrown too. According to Manchester City s ticketing data,people from 76 different countries attended matches at theEtihad Stadium in 2012-13.

According to the Premier Leagues Match Attender Surveyfor 2012-13, 97% of City supporters feel positive towardsthe Club (8% above the Premier League average) and 97%agree the Club is being well run (12% above the PremierLeague average).

A PASSIONATE ANDLOYAL FAN BASE

97% of MCFC fans feel positive towards the Club


Manchester City Fans Average fans of allPremier League clubs

Proportion of fans responding to Premier League survey who saidthey feel positive towards their Club

97% 89%

FANS

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Top 5 videos on MCFCs YouTube channel

1. The Harlem Shake

8.5 million views

3. Mario Balotelli mimics Joe Hart

3.3 million views

2. Mario Balotelli v City photographer

3.9 million views

4. Brazilian football legend Falcao takeson City Academy lads

1.4 million views5. Advent Calendar: Tevez teaches Balotelli

1.2 million viewsSource: Google Analytics

DIGITAL ANDSOCIAL MEDIA

Manchester City has continued to harness the potentialof digital and social media to remain connected with its

growing community of supporters in Manchester, the UKand around the world.

The Club is highly responsive to changes in consumer behaviouras it seeks to interact with audiences across different platforms.Key innovations in 2012-13 included optimising the Clubswebsite for mobile devices, the launching of new smartphoneapps tailored to the needs of our supporters, and an expansionof the Clubs social media presence.

During 2012-13, the new mobile version of Manchester Cityswebsite attracted over 6 million visits.

Our d edicated YouTube channel enjoyed particularly s tronggrowth. Total video views more than doubled in 2012-13,with more than 60 million views in total. The number ofsubscribers to the channel almost quadrupled over the courseof the year. The most popular video, the Clubs version of theHarlem Shake, was viewed 8.5 million times.

The number of Likes on the Clubs Facebook page almostdoubled with more than 2.5 milli on new Likes over thecourse of the season while the number of followers of itsTwitter account increased by almost 180%, t hanks to morethan half a million new followers in 2012-13.

In an initiative run by Twitter in January 2013, Manchester Citytopped the #TwitterLeagueTable, which ranked PremierLeague clubs on the basis of the number of followers theyand their players have, how engaged supporters are with theclubs tweets, and the extent to which they use team hashtags.

In February 2013, injured defender Micah Richards becamethe first Premier League player to live tweet during a matchvia the Clubs official account.

In April 2013, the Club celebrated its fifth year on Twitterby recalling its most popular tweets (based on retweetsand favourites). Not surprisingly, at the top of the lis t was:95. AGUERO SCORES AND WINS THE LE AGUE!!!!

Manchester City s #together campaign won MarketingCampaign of the Year at the Northwest Football Awards inNovember 2012.

In February 2013, Manchester City became one of the firstfootball clubs to begin creating and sharing video contentthrough social media app Vine.

MCFC top of #TwitterLeagueTable

Source: Twitter

Top Premier League clubs on Twitter, based onfollowers for team and player accounts, use of officialteam hashtags and fans interaction with contentshared by the teams

RANK CLUB

1 Manchester City

2 Chelsea

3 Tottenham Hotspur

4 Liverpool

5 Arsenal

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Visits to the Clubs website

33million

Facebook Likes by the end of May 2013

5.4million

Video views on the MCFC YouTube channel

60million 855,000Twitter followers by the end of May 2013

Page views on the Clubs website

90millionOf visits to the Clubs website from overseas

46% The proportion of MCFC fansthat use their official Clubwebsite at least 2 or 3 times perweek is greater than that forany other Premier League team

Source: Departamento de Internet

RANK CLUB POINTS

1 Barcelona 93

2 Manchester City 923 Benfica 91

4 Dinamo Kyiv 91

5 Paris St Germain 90

City continue to be pioneers in thesocial video space. After being thefirst club to run a Google+ Hangout

with fans, weve continued to seeCity embrace Google+. Sharingregular updates and match photoswith fans has helped grow theirfollowers to nearly 2 million.

Richard Keelty,Google+ Sports Marketing

Best Club websites of UEFA Champions League teamsbased on criteria such as usability, design and quality

Manchester Citys official Club website was rated thesecond best of the Clubs competing in the 2012-13UEFA Champions League

FANS

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INTERNATIONALOUTREACH

Alongside global coverage of Premier League and Europeanmatches, digital and social media play an impor tant role in

helping Manchester City reach its fans overseas. Overseasfans account for large proportions of activity on the Clubsofficial presence on YouTube and Facebook, while visits toManchester Citys Arabic-language website rose by 28%,to over 600,000.

In China, Manchester City has more followers than anyother European club on the two main micro-blogging sites,Sina and Tencent.

MCFC Sina Weibo is a classicmodel for football clubs.Manchester City has the biggestSina fan base globally in football,with far more followers thanany other club. Chinese fansparticularly welcome the livecommentaries and news feeds,which include translations fromother foreign language websites.

Wenjuan Ho, Weibo DevelopmentManager, Sina Sports Channel

European football clubs with the most followerson Sina Weibo and Tencent Weibo

RANK CLUB FOLLOWERS

1 Manchester City 4.4m

2 Real Madrid 2.1m

3 Chelsea 2.1m

4 Barcelona 2m

5 AC Milan 1.1m

Source: Mailman Group

International

Facebook likes by end of 2012-13 season YouTube views for MCFC channel, 2012-13

Source: Facebook

UK In ter na ti ona l UK

Source: Google Analytics

MCFC has more followers than any otherEuropean football club on the two mainmicro-blogging sites in China

5%23%

95% 77%

Visits to Arabiclanguage websiteup by 28%

Football clubs on YouTube with the highestlevels of viewing to their official channels

MCFCs YouTube channel registered more video views

over the 2012-13 season than any other football club

Source: YouTube data API (15 August 2012-31 May 2013)

RANK CLUB TOTAL VIEWSDURING SEASON

1 Manchester City 51.2m

2 Barcelona 50.5m

3 Santos 30.7m

4 Real Madrid 24.8m

5 Juventus 19.6m

FANS

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03.

COMMUNITY

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OVERVIEW

During 2012-13, the Clubs landmark City in the Communityprogramme engaged with more than 250,000 people for thefirst time, harnessed the goodwill of more than 100 generousvolunteers and raised 1.3m in charitable donations.

City in the Community has continued to deliver programmesacross the four pillars of Football and Multisport, Enterprise,

Cohesion and Health and Activity, with football increasingly atthe heart of its activities. This year, the Club has brought all ofts community initiatives under the umbrella of the City in the

Community Foundation in order to better integrate its activitieswith the Clubs broader operations and support functions.

We are committed to bei ng a good neighbour. The Club isconducting a public consultation on the potential expansionof the Etihad Stadium to a c apacity of around 54,000 inthe first instance and potentially up to around 60,000 ands actively seeking the views of the local community on this

proposal. We are also committed to ensuring that theongoing construction of the City Football Academy (CFA)has a minimal impact on local residents while deliveringbenefits to the local economy.

Manchester City has monitored its environmental and ethicalperformance since 2006. The Club continues to purchase00% renewable energy, ensures that none of its waste goes toandfill, and is one of the few companies to ensure all customer

travel and event-related operations are incorporated into themeasurement of its carbon footprint.

Finally, as Manchester City has continued to expand itsnternational presence, it has made long-term philanthropic

contributions to a number of communities around the world. InOctober 2012, Manchester City, in partnership with City Soccern the Community and the UAE Embas sy in Washington, helped

to deliver a football pitch in Chicago. This is the fourth project ofts kind and follows the successful launch of soccer fields and

coaching programmes in New York, East LA and Miami. The

Club has also continued to deepen its collaboration with SOSVillages through a new three-year partnership in China.

42 43

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CITY IN THECOMMUNITY

In its 26th year in 2012-13, the City in the Community (CITC)programme impacted more than 250,000 people through

programmes delivered across its four pillars of Football andMultisport, Enterprise, Cohesion and Health and Activity.

Following a comprehensive benchmarking process thatincluded consultation with the Premier League, this yearthe Club brought all of its community initiatives under theumbrella of the City in the Community Foundation.

Consistent with its increasingly holistic approach tooperations, the Club has sought to more closely integrate itscommunity activities with its broader operations, includingincreased collaboration between the CITC Foundation andthe Clubs commercial partnerships, marketing and digitalcommunications teams. For example, during the Clubs CITCCelebration Week in March 2013, CITC released a new v ideoeach day to showcase success stories from its communityprogrammes via the Clubs website and social mediachannels, generating more than 18,000 views.

During 2012-13, the City i n the Community Foundationraised 1.3 million for its community initiatives, whilebenefiting from the skills and energy of more than 100generous volunteers. These contributions enabled Cityin the Community to deliver more than 60,000 hours ofcommunity work during the year.

City i n the Community has also strengthened its eventscapabilities during 2012-13, helping to deliver the annual

Santa Stroll (involving 1,000 people) and the 24-hourVelocity cycling event at the National Cycling Centre inManchester that raised 45,000.

In May 2013, eight teams including sponsored teams fromHeineken, Virgin Media, Optimum Procurement and theMCFC Official Supporters Club took part in the inauguralCITC Etihad Tournament to raise money for CITC.

Celebrating the success of the Paralympi cs, in September2012 CITC helped deliver a variety of sports activities for 60young people with disabilities at the BBCs Media Cityin Salford.

After delivering disability football programmes for morethan ten years, City i n the Community has now created adedicated team for participants with hearing impairmentsthat has been entered in the Greater Manchester AbilityCounts Open Age League.

At the Northwest Football Awards in Oc tober 2012Manchester Citys One City Disability Sports project wasshortlisted for Project of the Year and City in the Communitywas shortlisted for Community Scheme of the Year.

Hours of participation in projects

43,000hrs 61,000hrs2011-12 2012-13



43% year-on-year rise in participation

More than 250,000 contacts across all activitiesCity in the Community: breakdown of participationby kind of activity in 2012-13 (percentage of hoursof total activity)

21%

Football & Multi-sport

Community Cohesion

35%Health & Activity

22%

Skills & Enterprise13%9%Disability Sports

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INTERNATIONALCOMMUNITY OUTREACH

Manchester City has made import ant contributionsto communities outside Manchester and the UK.

In October 2012, City Soccer in the Community opened anew soccer field in Chicago, serving 900 members of theHaas Park community centre. During 2012-13 the Club hascontributed coaching programmes to football pi tches inNew York, Chicago, Miami and Los Angeles and establisheda new three-year partnership with SOS Villages to assistdisadvantaged children in China.

In addition, CITC representativ es have been involved inthe delivery of Premier Skills a joint programme of thePremier League and the British Council that has includedthe provision of coaching education and activities in Mexico,India and the Sudan.

The four City Soccer inthe Community fields inthe US serve more than5,000 kids each week

CITC has delivered

aprogramme tomore than90% ofprimary schools inManchester over thecourse of the year

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Manchester City has continued to make important social,cultural and economic contributions to the East Manchester

community to which it belongs during 2012-13. The CFA project has already added around 500 new

construction jobs to the local economy (with more than halfof those emp loyed being from Greater Manchester), and thisis expected to grow to around 650 by Summer 2014.

180 people were employed over the course of the remediationof the City Football Academy site, including 82 from thelocal community. 32 of those employed were previously longterm unemployed, more than half of which were f rom northand east Manchester. The remediation phase of the p rojectmaintained a local procurement rate of 68%.

The Club is als o committed to minimising the impacts on thelocal community now that construction has commenced onthe CFA and hosts monthly meetings with local residents andbusinesses at the Etihad Stadium t o hear any concerns orsuggestions they may have.

The Club has commenced a public consultation on thepotential expansion of the seating capacity of the EtihadStadium. The Club is seeking the views of fans, localresidents and other stakeholders via an exhibition atthe Etihad Stadium where people can complete a shortquestionnaire on the proposal. Individuals can also reviewthe information and submit their feedback online.

Manchester City has continued to expand the role of theEtihad Stadium and Campus as a local hub for entertainmentand events through initiatives such as the Christmasmarkets, the annual Santa Stroll and the hosting of concerts

and non-football events at the Stadium. This effort has beenenhanced by the completion of the Metrolink in February2013. In the last year, it has been confirmed that the EtihadStadium will be the site of three One Direction concerts in2014, as well as the Rugby League Magic Weekend for thethird year in succession, and one match of the Rugby WorldCup in 2015 (the only England match that will not be playedat Twickenham).

Construction has been commenced by Manchester Cit yCouncil on a 16-acre site in Beswick, East Manchester. The

Clubs donation of 5.5 acres of remediated land on whichthe New Connell Sixth Form College will be located and itscontribution to the creation of leisure facilities for localresidents are fundamental to the continuing developmentof the area, bringing with it further opportunities for localemployment, upskilling and procurement.

SOCIAL, CULTURAL AND ECONOMICCONTRIBUTION TO EAST MANCHESTER

Local firms representedmore than two-thirds ofall subcontracted work,ranging from plant hire tospecialised remediation,

security and site set-up

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Hours of onsite training for the workforce Trainees working towards qualifications

INITIAL STAGE OF CFA CONSTRUCTION

Contracts awarded to local companies

Of workforce from Greater Manchester People on site were previously unemployed22 Work experience placements14

160

55%

People employed onsite

C500

C3,000

People employed during remediation process

Employees were from the long-term unemployment register Of all sub-contracted work was allocated to local firms

Of people employed during remediation processfrom the local community

COMPLETION OF REMEDIATION PROCESS

180

68%

46%

32

MCFC has set ambitious employment,procurement, community andenvironmental targets for theconstruction of the CFA

33

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Manchester City promotes equality of opportunity, diversityand respect across all its activities. It is committed to making

football a welcoming place for ever yone including thoseparticipating in the sport, people attending matches andthose working or volunteering in the sport.

We aim to provide a welcoming environment for all fans,regardless of their age, gender, race, relig ion or sexualorientation. The Clubs Customer Charter and GroundRegulations expressly forbid racial, homophobic ordiscriminatory abuse, chanting or harassment any ofwhich may result in arrest or ejection from the ground.

ANTI-DISCRIMINATION

Consistent with its commitment to responsible corporatecitizenship, Manchester City has thoroughly measured its

environmental and ethical performance since 2006. Energy use is one of the largest contributors t o the Clubs

environmental impact. In the 2012 calendar year, the Clubsoverall energy use increased due to higher attendance, acold winter and the added impact of hosting UEFA ChampionsLeague matches at the Etihad Stadium. However, the Clubwas able to reduce its water consumption.

The Club has significantly improved its waste disposal overthe past seven years, now ensuring that none of its wastegoes to landfill. All waste is closely monitored to ensure thatreuse and recycling are maximised and that, when wastedisposal is required, it is done responsibly. The introductionof food waste segregation helped Manchester City increasethe proportion of waste that is recycled to 36% in 2012-13,up from 22% the year before.

In 2012-13, the Club became one of the few companies toincorporate all of its vehicle use, transport, customer traveland event-related operations (such as broadcast and eventset-up) into the measurement of its carb on footprint. TheClub believes this provides it with a more honest assessmentof its carbon impact that will help it to i dentify the best waysto minimise and offset it.

As part of the CFA project, the Club has prepared 2,000 new,mature trees that are expected to be brought on to the sitein 2014. These new trees will make a significant contributionto biodiversity in the local environment and enhance thesustainability of the entire project.

RESPONSIBLE CORPORATECITIZENSHIP

72% year-on-yearfall in MCFCs carbonfootprint afteroffsetting in 2012-13

MCFCs commitmentto recycling andwaste managementZero landfill as part of policy to dispose of waste in a safeand environmentally-friendly fashion, with a focuson reuse, recycling and where this is not possible waste-heat reuse to recover energy

Proportion of waste that is recycled

In 2011-12 In 2012-13

22% 36%Source: Manchester City

0%landfill

The Club has continued to participate in, and activelysupport, a range of high-profile initiatives and agreements

aimed at promoting equality in football and in all sectors inwhich the organisation operates. This seas on, the Club hasworked closely with the anti-discrimination organisation KickIt Out and supports the Show Racism the Red Card campaign.A signatory to the UK Governments Charter for ActionTackling Homophobia and Transphobia in Sport, ManchesterCity also continued its valued partnership with Football vHomophobia as well as providing support in event hostingand kit donation for the Gay Football Supporters Network(GFSN) and local Village Manchester FC team.

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04.

COMMERCIAL& OPERATIONS

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OVERVIEW

Commercial revenue growth has been fundamental toManchester Citys drive for sustainable profitability. Cognisantof the opportunities for significant uplift in this area, the Clubstrengthened its commercial capabilities with the hiring of topevel talent at all levels of the organisation. This followed the

appointment as Chief Commercial and Operating Officern May 2012 of Tom Glick, former CEO of Derby County FC.

The Club is now supported by an expanded multi-nationalcommercial team. This capability has been strengthenedby the targeted recruitment of a talented staff, capable ofrealising existing opportunities while harnessing those newopportunities created by the teams improved performanceson the pitch. The approach has resulted in revenue growthfrom multiple streams in 2012-13.

Underpinning all areas of commercial activity is the commitmentof the Club to enhancing existing relationships and offeringswhilst also seeking to create new and meaningful connections.This ethos is applicable to all engagements locally, nationallyand internationally.

The team, a large number of which is now working out ofoffices in London, enables the creation of additionalcommercial partnerships whilst delivering maximum valueto our existing partners. It is from both hubs, Manchesterand London, that we operate a more consultative style ofengagement as we seek to listen and respond to our partnerneeds, maximising the benefits to both parties.

This approach has seen an increase this year not only in thevalue of sponsorship contracts, but also the nature of thecontracts, with the Club forging regional deals for the firsttime, including Extra Joss and Est Cola in Indonesia andThailand respectively.

The Club continues to provide its new and existing fanswith some of the most affordable ticketing options in thePremier League and at the same time has modernised thestadium with cutting edge technology, improved cateringand refurbishments in both general admission areas andpremium hospitality suites.

As demand for seats grows, and with the stadium close tocapacity for the second consecutive season for all PremierLeague games, we are conducting a public consultation onthe possible expansion of the Etihad Stadium to a capacityof around 54,000 with the potential to rise to 60,000 in thefuture. Central to our expansion plans is our commitment toprices to suit all budgets with season tickets for the currentseason starting at 275 the second cheapest in thePremier League.

Finally, our fan engagement continues to expand at home andoverseas. We consult extensively with our local supportersto canvass their opinions and have also invested significantlyin digital outreach for our fans overseas, including the

development of ten new language websites ready for launchin the summer of 2013.

The announcement in May 2013 of the acquisition of theNew York City FC MLS franchise pres ents the organisationwith a unique opportunity for further engagement and expansionin a region of the world in which interest in football is growingat an unprecedented rate.

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The Clubs recent on-field success, including thehistoric 2011-12 Barclays Premier League victory, has

generated commercial benefits in the form of increasedcommercial revenue (up 33%) and match day revenue(up 11%) during 2012-13.

The Club has also experienced increased demand frompotential partners. Key existing partners have renewed theiragreements with the Club while a range of new partners havebeen added. The new partnership agreements will focus ondeveloping innovative content that benefits the Clubs fansin Manchester and across the globe, whilst also helping togrow the City brand internationally. The growing interestfrom international brands has enabled the Club to developregion-specific deals for the first time.

COMMERCIAL GROWTHAND EXPANSION

The Club is now supported by an expanded, experiencedand multi-national commercial team working out of offi ces

in London. This has included the appointment of accountmanagers with specific industry experience relating to thepartners with which they are working. The Club has alsodeveloped a new Partner Promise that seeks to ensure itworks proactively and collaboratively to create value for itspartners through a better understanding of their needs.

In April 2013, the Club hosted a two-day Partner Forum toprovide a detailed briefing on its current plans, understandpartners priorities and build deeper relationships.

The Club unveiled its firs t kit through its new partnershipwith Nike in May 2013, and expects to benefit significantlyfrom this relationship via increased sales and much widerinternational distribution. Source: Manchester City

Source: Deloitte Football Money League 2013

2009-10 2010-11 2011-122008-09

50

300

100

150

200

250

Growth in MCFC revenuesmillions

Clubs in 2013 Deloitte Football Money Leaguewith fastest growing year-on-year revenues

2012-13

87.026.8

54.0

44.3

29.1

68.8

55.3

35.5

88.1

107.5

125.1

153.2

231.1

39.6

88.4

143.0271.0

48.315.7

23.1

BorussiaDortmund

Napoli ChelseaManchesterCity

10%

60%

20%

30%

40%

50%

Juventus

80%

70%

68%

BroadcastMatchday

37% 27% 27%29%

Commercial

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PARTNERSHIPCASE STUDIES

Nike 13-14 Home KitLaunch (New York)Manchester Citys home kit for the 2013-14 seasonwas launched in New York during the post-seasontour, with new partner Nike. The launch campaign,featuring the players against the i conic New Yorkskyline and the tag line City Rising, was viewedby millions across MCFC, Nike and multiple othermedia channels. The image was also projectedonto Manchester Town Hall. Initial forecastsfrom Nike for 2013-14 shirt sales suggest a largeincrease on previous seasons.

City fans, from around the world, booking a flight with Etihadduring the five-month competition period were given the chanceo visit the Etihad Stadium and train at Citys training ground.

The global campaign ran across all MCFC communicationchannels, from digital to pitch-side LED boards, and was alsosupported by Etihad channels in ten of their key markets. Thisseason saw the highest number of entri es ever for the annualcompetition, which also reached over 20 million global fans.

Etihad: Fly With The BestTrain With the Best

Findout moreat www.etihadmcfc.com. Winners willbeannouncedinApril. Terms andconditions apply.*2009, 2010 &2011 WorldTravelAwards.

Fly Etihad Airways to win an exclusive trainingsession for you and a friend with Manchester City.EtihadAirways,theWorldsLeadingAirline,*isgivingsomeluckyCityfansthechancetowinadreamexperience with Manchester City. This fantastic prize includes breakfastand a behind-the-scenes tour at the Etihad Stadium, a visit to Citys training groundfor a training session with Manchester City coaching staff, a meet and greet with theManager and full training gear.

Enter the Prize Draw by registering yourpersonaldetailsandbooking confirmationnumberat www.etihadmcfc.comwhenyoubook any Etihad flight between9 December 2012 and 31 March 2013.

Etihad Playerof the MonthEach month of the season, Etihad gave global fans the chanceto vote for their MCFC Etihad Player of The Month. Hosted onCitys official website and social media platforms, over 17,000supporters voted across the season. Each month one lucky fan,selected from all of those voting for that months winning player,was invited to present the award in person at Citys trainingground. This was captured by City TV, with the presentationvideos being viewed by over 30,000 fans around the world.

This month-long campaign asked fans to share their detailson FIFA Online 2, in return for which they could win a tripto watch the City-United derby game, with Etihad flightsand accommodation included. More t han 500,000 dataentries were captured from entrants in Asia alone.

EA SPORTS:FIFA Online (Asia)

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Manchester City t ook a number of important steps thisyear to expand its international presence and accelerate

the growth of its global fan base. The Club conducted both post- and pre-season tours in the

Summer of 2013 to support its commercial objectives whilstprimarily enabling the squad to prepare for the upcomingseason. The combined tours featured nine matches on fourcontinents, including stops in New York, St L ouis, Durban,Johannesburg, Hong Kong, Munich and Helsinki.

The popularity of the Abu Dhabi School of Football has grownrapidly in 2012-13 with the number of partici pants doubling,including players from more than 50 different countries.More than two out of three of the 2011-2012 players choseto keep on participating in the 2012-13 programmes.

The SkyBlue programme, created in partnership with EtihadAirways specifically for City supporters in the UAE, boastedalmost 15,000 members by the end of the season.

In May 2013, a partnership was announced with the NewYork Yankees to establish a new Major League Soccer (MLS)franchise in New York City, to be known as Ne w York CityFootball Club (NYCFC). The Director of Football for NYCFC,Claudio Reyna, has been mandated to begin the process ofassembling a team that can take the field in the 2015 s eason.

GLOBALAMBITIONS

Tickets for theManchester City-Chelseafriendly at the BuschStadium in St Louissold out in 20 minutes.The game drew a recordcrowd of over 48,000

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Participants from morethan 50 countriesattended the Abu DhabiSchool of Footballprogrammes in 2012-13

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Manchester City has made consistent improvements tothe Etihad Stadium to improve the match day experience

and enhance the hospitality offering available throughoutits facilities. The Club has also continued to make itsfacilities available for a range of non-football events togenerate additional revenue and enhance the role of theEtihad Stadium as an entertainment hub in the hear t ofEast Manchester.

In M ay 2013 the Club announced an agreement with O2for the installation of a high-density WiFi network for theEtihad Stadium and new technology to improve mobilephone connectivity on match days and at other events.

This year the Club establis hed the Connell Club,refurbished the Mancunian Suite, created three newexperiential boxes, renovated the press desks at theEtihad Stadium and expanded the stadium tour offerings.Encouragingly, stadium tour attendance was at anall-time high during 2012-13.

The Clubs new catering partnership with Jamie OliversFabulous Feasts and Legends Hospitality through theirpartnership, Fabulous Fan Fayre announced in July2013 is expected to transform the dining experience atthe Etihad Stadium.

Through a partnership with LG, Manchester City is installingmore than 350 new digital signboards in the Etihad Stadiumthat will enable the delivery of better and more up-to-dateinformation to our guests and the introducti on of innovativeservices such as dynamic pricing at concession outlets.

The Club remains committed to achieving high standards at

its off-site facilities too. A Premier League Academy Health& Safety Audit Review and Assessment conducted in March2013 gave Manchester City a score of 97% on the standardsin place at Platt Lane f or the second consecutive year. Inthe most recent Food Hygiene audit in 2012-13, ManchesterCity achieved scores of 97% for Platt Lane and 89% forCarrington. In addition, the Club was gi ven an A rating ina Food Hygiene audit conducted by Trafford MetropolitanBorough Council in February 2013.

The Platt Lane complex, at which the Club operates a gymopen to the local community, continues to grow in popularity.

Income from the Platt Lane complex grew by 5.6% during2012-13 while the number of users rose by 19.3%. The numberof gym members grew by 43.5% with more than 65% livingwithin one mile of the centre.

During 2012-13, the Etihad Stadium hosted concerts byBruce Springsteen, Coldplay, Muse, Bon Jovi and RobbieWilliams (four nights). In May 2013, the rugby league Magi cWeekend was held at the Etihad Stadium for the second yearrunning, and will be held there again in 2014. It has also beenconfirmed that the Etihad Stadium will be the site of threeOne Direction concerts in 2014 and one match of the RugbyWorld Cup in 2015 (the only England match that will not beplayed at Twickenham).

The Club has expanded the number of events hosted at theEtihad Stadium while maintaining the quality of the playingsurface through effective planning and the exceptionaltalents of our grounds team. During 2012-13, the EtihadStadium was a finalist for the Institute of Groundsmanship(IOG) Professional Spectator Sports Ground of the Year andour grounds team were ranked in the top fi ve and highlycommended in the Barclays Premier League Groundsmanof the Year Award. At the IOG Awards in December 2012,two groundsmen from our Carrington training ground wereawarded winner and runner up respectively in the IOG YoungGroundsman of the Year category.

In November 2012, the Club won two awards at the inauguralFootball Business Awards for Best/Most Innovative Use OfTechnology and, for our partnership with EA Sports, Club

Sponsorship/Partnership of the Year.

WORLD-CLASS FACILITIESAND OPERATIONS

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AWARDS FOR2012-13 SEASON

Consistent wit h Manchester Citys goal to remain anemployer of choice in the UK and internationally, the Club has

introduced a number of new initiatives in 2012-13 to increasestaff consultation, training and professional developmentacross the organisation.

The Clubs e-learning tool, known as CityLearning, helped usdeliver training to more than 300 individual employees during2012-13 from more than 30 separate training modules.The Club has also introduced a new forum, known as BlueSky Thinking, for gathering feedback and suggestionsfrom its employees. Meanwhile, our new CitySpiritbehaviours framework which articulates the kind oforganisation we want to be was developed in directconsultation with our employees.

In July 2013, Manchester City was awarded Bronze status byInvestors in People, becoming the first Premier League club toreceive this nationally-recognised accreditation. The Bronzestatus achieved by the Club i s held by around only 5% ofInvestors in People organisations nationwide.

Football

Winner, Manager of the Year Award for Rober to Mancini,Northwest Football Awards 2012 (November 2012)

Pablo Zabaleta included in Professional Footballers Association (PFA) Team of the Year 2013 for the BarclaysPremier League (April 2013)

Winner for the third successive ye ar, Golden Glovesaward for Joe Hart for the most clean sheets in thePremier League (April 2013)

Winner, Premier League Under 14 National Tournament 2013

Winner, Premie r League Under 13 International Tournament 2013

Commercial and operational Winner, Best Club Marketi ng Campaign for #Together

campaign, Northwest Football Awards 2012 (November 2012)

Winner, Best / Mos t Innovative use of Technology by Clubs,Football Business Awards 2012 (November 2012)

Winner, Club Sponsorship / Par tnership of the Year forManchester City FC / EA Sports (Circle Agency), FootballBusiness Awards 2012 (November 2012)

ENGAGEMENT WITHOUR EMPLOYEES

There is a significant commitmentto corporate social responsibilityand club resources have beentargeted to deliver long termcommunity based programmesand events which really do havea positive impactInvestors In People Assessment report on awardof Bronze status to MCFC

Winner, Best Social Media Presence, City of ManchesterBusiness Awards (Downtown Manchester In Business

2013 (March 2013) IOG Rigb y Taylor/Top Green Young Groundsman of the Year,

IOG Industry Awards 2012 (December 2012) Winner, Luke Dodge Finalist, Paul Baker

Finalist, IOG Governing Bodies Professional Spectator SportsGround of the Year for the Etihad Stadium, IOG Industry Awards2012 (December 2012)

Winner, Directors Choice in the Premier League Award(voted by football club Boards of Directors when theyvisit an away match), Official Football Hospitality Awards,2013 (May 2013)

Winner, Strategic Award (Sport) for Manchester Citywebsite, Pan Arab Web Awards 2012 (May 2012)

Winner, Golden Award (Sport) for Manchester City website,Pan Arab Web Awards 2012 (May 2012)

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NorthAmericaSouthAmericaEuropeAfricaAsia

Australia

MCFCWEBVISITS

0-100K

100-500K

500K-1M

1M-5M

5M-20M

NTERESTEDFANS

0-1K

1-2.5K

2.5-5K

5-10K

10-20K

NorthAmericaSouthAmericaEuropeAfricaAsiaAustralia

GLOBALMAP

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TBC

NUMBER OF MANCHESTER CITY FANS WHOATTENDED

AT LEAST ONE MATCH AT THE ETIHAD STADIUM IN 2012-13

0 - 49 50 - 99 100 - 200

200 -350 350 -700

CITY IN THE COMMUNITY ACTIVITIES:

SCHOOLS ANDOTHER SITES THAT

WERE VISITEDREGULARLY

RESIDENCE OF YOUNG PLAYERS

N THE CITY ACADEMY

THE ETIHADSTADIUM

OLDHAM

TAMESIDE

STOCKPORT

MANCHESTER

TRAFFORD

ROCHDALE

SALFORD

BOLTON

BURY

WIGAN

GREATER MANCHESTERAREA (BY POSTCODE)

LOCALMAP

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05.

FINANCIALREPORT

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FINANCIAL REPORT

76 77

Directors and Advisors

DIRECTORS

K Al Mubarak (Chairman)J MacBeathM EdelmanS PearceM Al MazroueiA Galassi

COMPANY SECRETARY

S Cliff

REGISTERED OFFICE

Etihad Stadium, Manchester M11 3FF

BANKERS

Barclays Bank PLC, 51 Mosley Street, Manchester M60 2AU

AUDITORS

BDO LLP, 3 Hardman Street, Manchester M3 3AT

SOLICITORS

Shearman & Sterling LLP, Broadgate West, 9 Appold Str eet,London EC2A 2AP

Contents Page

Directors and Advisors 77

Directors Report 79

Statement of Directors Responsibilities 81

ndependent Auditors Report 82

Consolidated Profit and Loss Account 83

Consolidated Statement of Total Recognised Gains and Losses 84

Consolidated Note of Historical Cost Profits and Losses 84

Balance Sheets 85

Group Cash Flow Statement 86

Notes to the Consolidated Financial Statements 87

MANCHESTER CITY LIMITED

DIRECTORS REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2013

REGISTERED NUMBER 2989498


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FINANCIAL REPORT

78 79

Directors and Advisors

The Board of Directors comprises:

KHALDOON AL MUBARAK (CHAIRMAN)

Khaldoon Al Mubarak is Chairman of the Abu Dhabi Executive AffairsAuthority, which provides strategic policy advice to the Chairman ofthe Abu Dhabi Executive Council, of which he is also a member. He isChairman of the Emirates Nuclear Energy Corporation, the Abu DhabiMedia Zone Authority and Emirates Aluminium (EMAL). He is alsoDeputy Chairman of the Urban Planning Council and a board memberof First Gulf Bank and Ferrari SpA.

MARTIN EDELMAN (NON-EXECUTIVE DIRECTOR)

Martin Edelman was appointed to the Board on 23 September 2008.He was a Director of Cendant Corporation from 1997-2006 and wasa Director of HFS from November 1993 until September 1997. Hehas been Of Counsel to Paul, Hastings, Janofsky & Walker, LLP, aNew York City law firm, since June 2000 and currently serves asa Director of the Avis Budget Group. He is also a Director of AldarProperties, Ashford Hospitality Trust and Capital Trust.

SIMON PEARCE (NON-EXECUTIVE DIRECTOR)

Simon Pearce was appointed to the Board on 23 September 2008.He is a Special Advisor to the Chairman of the Executive AffairsAuthority of Abu Dhabi. He is also a Director of twofour 54, annitiative to accelerate the development of the media sector in the

UAE and MENA region, and ADMM, t he owners and operatorsof Yas Marina Circuit.

MOHAMED AL MAZROUEI (NON-EXECUTIVE DIRECTOR)

Mohamed Al Mazrouei joined Abu Dhabi Media Company as Chairmanof the Board in July 2010. Mr Al Mazrouei is Under Secretary to theAbu Dhabi Crown Princes Court, a role he ass umed in April 2008.He also serves as a non-Executive Director for Etihad Airways.

JOHN MACBEATH (NON-EXECUTIVE DIRECTOR)

John MacBeath is a Chartered Accountant with extensiventernational business experience in the oil & gas and aerospacendustrial sectors. He joined the Board in January 2010 and was

appointed Interim Chief Executive Officer between September 2011and September 2012.

ALBERTO GALASSI (NON-EXECUTIVE DIRECTOR)

Alberto Galassi was appointed to the Board on 24 June 2012.He is currently CEO of Piaggio Aero Industries and previouslyserved on the Executive Committee of Piaggio Aero as BoardMember responsible for Marketing and Sales. He is attorney ataw specialising in International commerce and arbitration and

has been a member of the Bar since 1996.

Directors Report

The directors present their annual report on the affairs of the Group,together with the financial statements and auditors report, for theyear ended 31 May 2013.

PRINCIPAL ACTIVITIES

The principal activity of the Group is the operation of a professionalfootball club.

BUSINESS REVIEW AND KEY PERFORMANCE INDICATORS

On the pitch, the Club backed up its first Barclays Premier Leaguetitle in 2011-12 by finishing runners up and qualifi ed for the GroupStage of the UEFA Champions League for the second success iveseason. The Club played 26 matches at the Etihad Stadium (2012: 27)attracting an average attendance in the Premier League of 46,977(2012: 47,032).

During 2012-13, Manchester City Football Club maintained the steadyreduction in annual losses that commenced in the previous reportingperiod and continued its trend towards sustainable profitability.

The Club returned a bottom line l oss of 51.6m for 2012-13,representing a near halving of the loss reported in the previousyear. Consistent with the Clubs prior advice that 2010-11 wouldrepresent the bottoming out of financial losses at Manchester City,this is the second consecutive year in which the annual loss hasbeen significantly reduced. It is also the first time under the currentownership that the Club has reported an operating profit beforeplayer trading which totalled 30.2m (2012: 21.1m loss).

Encouragingly, Manchester Citys revenues continued to grow during2012-13 to 271m, breaking the 250m threshold for the firs t time inthe Clubs history.

Specifically:

Matchday revenue increased by 12% from 35.5m to 39.6m,reflecting ongoing demand for memberships, tickets and hospitality;

Broadcasting revenue increased slightl y from 88.1m to 88.4m,as a result of the Clubs second p lace finish in the Premier Le agueand participation in the UEFA Champions League; and

Other commercial revenue increased by 33% from 107.5mto 143.0m, driven by an i ncrease in the number and value ofsponsorship contracts (including Etihad, EA Sports, Richard Mille andnew regional deals with Est Cola and Extra Joss) and income from the

Clubs post season tours to China and Malaysia in Summer 2012 andthe United States in May 2013.

Transfer activity has been relatively stable in 2012-13. Consistent withthe Clubs statement in 2009-10 that transfers on the scale seen in thepreceding years would be unlikely to be repeated in the near future,the Club has made limited adjustments to its squad. As a result, the costof amortisation of player contracts decreased from 83.0m to 80.9min 2012-13.

The capital base of the company was strengthened during 2012-13with 189.8m of new equity issued. The Club has also renegotiated thefinance lease on the Etihad Stadium and, after five years of in-depthplanning, remains on track to open the new City Football Academy(CFA) in advance of the 2014-15 season.

After paying off its remaining external borrowings, the Club is nowoperating with zero financial debt. The abs ence of financial debt atManchester City provides the Club with a strong and stable foundationfor its future growth and operations.


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80 81

DIRECTORS

The Directors who held office during the year were as follows:

K Al Mubarak (Chairman)J MacBeathM EdelmanS PearceM Al MazroueiA Galassi

RESULT FOR THE YEAR

The loss for the financial year was 51,621,000 (2012: 97,857,000).The Directors do not propose a dividend (2012: nil).

RISKS AND UNCERTAINTIES

The Board acknowledges that there are a number of r isks anduncertainties which could have a material impact on the Groupsperformance. The Groups income is affected by the performanceof the first team because significant revenues are dependent uponstrong team performances in the Premier League, domestic andEuropean Cup competitions. The Club is regulated by the rules ofthe FA, Premier League, UEFA and FIFA and any change to theseregulations could have an impact as the regulations cover areas suchas: the distribution of broadcasting income, the eligibility of playersand the operation of the transfer market. The Club monitors itscompliance with all applicable rules and regulations on a continuousbasis and considers the impact of any potential changes.

POLITICAL AND CHARITABLE CONTRIBUTIONS

The Group made no political contributions. Donations to UK charitiesamounted to 241,361 (2012: 231,027).

SUPPLIER PAYMENT POLICY

The Group had 35 days (2012: 23 days) of purchases outstandingat the end of the financial year.

The Group policy is normally to pay suppliers according to agreedterms of business rather than following any code or standard onpayment practice. These terms are agreed upon entering into bindingcontracts and the Group seeks to adhere to the payment termsproviding the relevant goods and services have been supplied inaccordance with the contracts.

EMPLOYEE INVOLVEMENT

Within the bounds of commercial confidentiality, staff at all levels arekept fully informed of matters that affect the progress of the Groupand are of interest to them as employees.

DISABLED EMPLOYEES

Disabled employees are given full and fair consideration for alltypes of vacancy. If an existing employee becomes disabled, suchsteps as are practical and reasonable are taken to retain him/her inemployment. Where appropriate, assistance with rehabilitation andsuitable training are given. Disabled persons have equal opportunitiesfor training, career development and promotion, except insofar assuch opportunities are constrained by the practical limitations oftheir disability.

Statement of Directors Responsibilities

DIRECTORS RESPONSIBILITY

The Directors are responsible for preparing the Directors reportand the financial statements in accordance with applicable lawand regulations.

Company law requires the Directors to prepare financial statementsfor each financial year. Under that law the Directors have el ected toprepare the Group and Company financial statements in accordancewith United Kingdom Generally Accepted Accounting Practice (UnitedKingdom Accounting Standards and applicable law). Under companylaw the Directors must not approve the financial statements unlessthey are satisfied that they give a true and fair view of the state ofaffairs of the Group and Company and of the profit or loss of t heGroup for that period.

In preparing these financial statements, the Directors are required to:

select suitable accounting policies and then apply them consistently;

make judgments and accounting estimates that are reasonableand prudent;

state whether applicable UK Accounting Standards have beenfollowed, subject to any material departures disclosed andexplained in the financial statements; and

prepare the financial statements on the going concern basisunless it is inappropriate to presume that the Company willcontinue in business.

The Directors are responsible for keeping adequate accountingrecords that are sufficient to show and explain the Companystransactions and disclose with reasonable accuracy at any time thefinancial position of the Company and enable them to ensure that thefinancial statements comply with the Companies Act 2006. They arealso responsible for safeguarding the assets of the Company andhence for taking reasonable steps for the prevention and detection offraud and other irregularities.

WEBSITE PUBLICATION

Financial statements are published on the Companys website inaccordance with legislation in the Unite d Kingdom governing thepreparation and dissemination of financial statements, whichmay vary from legislation in other jurisdictions. The maintenanceand integrity of the Companys website is the responsibility of theDirectors. The Directors responsibility also extends to the ongoingintegrity of the financial statements contained therein.

AUDITORS

All of the current Directors have taken all the steps that they oughtto have taken to make themselves aware of any information neededby the Companys auditors for the purposes of their audit andto establish that the auditors are aware of that information. TheDirectors are not aware of any rel evant audit information of whichthe auditors are unaware.

By order of the Board

J MacBeathDirector15 October 2013


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Independent Auditors Report to the Members ofManchester City Limited

We have audited the financial statements of Manchester City Limitedfor the year ended 31 May 2013 which comprise the consolidated profitand loss account, the consolidated and company balance sheets, theconsolidated cash flow statement and the related notes. The financialreporting framework that has been applied in their preparation isapplicable law and United Kingdom Accounting Standards (UnitedKingdom Generally Accepted Accounting Practi ce).

This report is made solely to the Companys members, as a body, inaccordance with Chapter 3 of Part 16 of the Companies Act 2006.Our audit work has been undertaken so that we might state to theCompanys members those matters we are required to state to themn an auditors report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyoneother than the Company and the Companys members as a body, forour audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

As explained more fully in the statement of Directors responsibilities,the Directors are responsible for the preparation of the financialstatements and for being satisfied that they give a true and fair view.Our responsibility is to audit and express an opinion on the financialstatements in accordance with applicable law and InternationalStandards on Auditing (UK and Ireland). Those s tandards requireus to comply with the Auditing Practices Boards Ethical Standardsfor Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

A description of the scope of an audit of financial statementss provided on the Financial Reporting Councils website at

www.frc.org.uk/auditscopeukprivate.

OPINION ON FINANCIAL STATEMENTS

n our opinion the financial statements:

give a true and fair view of the state of the Groups and the parentCompanys affairs as at 31 May 2013 and of the Groups loss for theyear then ended;

have been properly prepared in accordance with United KingdomGenerally Accepted Accounting Practice; and

have been prepared in accordance with the requirements

of the Companies Act 2006.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion the information given in the Directors report for thefinancial year for which the financial statements are prepared isconsistent with the financial statements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matterswhere the Companies Act 2006 requires us to report to you if,in our opinion:

adequate accounting records have not been kept by the parentcompany, or returns adequate for our audit have not been receivedfrom branches not visited by us; or

the parent company financial statements are not in agreementwith the accounting records and returns; or

certain disclosures of Directors remuneration specified by laware not made; or

we have not received all the information and explanations werequire for our audit.

Julien Rye (senior statutory auditor)For and on behalf of BDO LLP, statutory auditorManchester15 October 2013

BDO LLP is a limited liability partnership registered in Englandand Wales (with registered number O C305127).

Consolidated Profit and Loss Account


Note Operationsexcluding player

tradingYear ended

31 May2013

000

Player trading

Year ended31 May

2013000

Total

Year ended31 May

2013000

Total

Year ended31 May

2012000

Turnover 2 271,000 - 271,000 231,140

Other operating income 3 47,728 - 47,728 12,800

Operating expenses 3 (288,484) (80,869) (369,353) (348,031)

Operating profit/(loss) 30,244 (80,869) (50,625) (104,091)

Profit on disposal of players - 5,872 5,872 10,647

Profit/(loss) before interest and taxation 30,244 (74,997) (44,753) (93,444)

Interest receivable and similar income 6 233 - 233 1,815

Interest payable and similar charges 7 (3,737) - (3,737) (2,738)

Stadium finance lease charges (3,364) - (3,364) (4,338)

Profit/(loss) on ordinary activities before taxation 23,376 (74,997) (51,621) (98,705)

Taxation 8 - - - 848

Profit/(loss) on ordinary activities after taxation 19 23,376 (74,997) (51,621) (97,857)

The notes on pages 87 to 106 form part of these financial statements.


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FINANCIAL REPORT

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Consolidated Statement of Total Recognised Gains and Losses


Note Year ended31 May 2013

000

Year ended31 May 2012

000

Loss for the financial year (51,621) (97,857)

Unrealised deficit on revaluation of properties 19 (29,257) (17,141)

Total recognised losses for the year (80,878) (114,998)

Consolidated Note of Historical Cost Profits and Losses



000


000

Loss on ordinary activities before and after taxation (51,621) (97,857)

Difference between historical cost depreciation charge and the actualdepreciation charge for the year calculated on the r evalued amount

1,120

1,214

Historical cost loss on ordinary activities before and after taxation (50,501) (96,643)


Balance Sheets

AS AT 31 MAY 2013

Registered number:2989498

Group Company

Note 2013000

2012000

2013000

2012000

Fixed assets

Intangible assets 10 186,215 226,244 - -

Tangible assets 11 260,006 219,969 - -

Investments 12 - - 435,262 46,486

446,221 446,213 435,262 46,486

Current assets

D eb to rs - a mo un ts f al li ng d ue w it hi n o ne y ea r 1 3 156,307 81,819 - 279,872

Debtors - amounts falling due after more than one year 13 32,367 4,720

Cash at bank and in hand 14,045 12,600 - -

202,719 99,139 - 279,872

Creditors amounts falling due wi thin one year 14 (106,860) (109,657) - -

Net current assets/(liabilities) 95,859 (10,518) - 279,872

Total assets less current liabilities 542,080 435,695 435,262 326,358

Creditors - amounts falling due after more than one year 15 (67,336) (78,670) - -

Deferred income 17 (39,482) (30,667) - -

Net assets 435,262 326,358 435,262 326,358

Capital and reserves

Called up share capital 18 53,592 44,640 53,592 44,640

Share premium account 19 999,616 818,786 999,616 818,786

Revaluation reserve 19 44,686 73,943 - -

Profit and loss account 19 (662,632) (611,011) (617,946) (537,068)

Shareholders funds 21 435,262 326,358 435,262 326,358


These financial statements were approved by the Board of Directorson 15 October 2013 and were signed on its behalf by:

J MacBeathDirector


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Group Cash Flow Statement


Note Year ended31 May 2013

000


000

Net cash outflow from operating activities 24 (26,825) (53,176)

Return on investments and servicing of finance

Interest paid (5,369) (2,651)

Interest element of finance lease payments (4,120) (3,421)

Interest received 58 4

Net cash outflow from return on investments and ser vicing of finance (9,431) (6,068)

Capital expenditure

Purchase of intangible fixed assets (101,099) (122,854)

Sale of intangible fixed assets 22,145 27,621

Purchase of tangible fixed assets (40,422) (29,645)

Net cash outflow from capital expenditure (119,376) (124,878)

Net cash outflow before financi

manchester city cf, annual report 2012/2013

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