Manchester City's historic success on the pitch has been matched on the balance sheet after the Premier League club announced record revenue and profits in their annual report for the 2022/23 season.
City earned revenues of £712.8 million ($889.4 million) to June 2023 according to Manchester City FC Ltd's annual report, an increase of £99.8 million (16.3%) over the previous season, along with a record net profit of £80.4 million.
"The 2022/23 season saw Manchester City scale new heights and set new benchmarks," City chairman Khaldoon Al Mubarak said in a statement. "In short, last season saw Manchester City achieve the greatest football and commercial year of its storied history."
City experienced growth over the previous year across all revenue streams of commercial, matchday and broadcasting.
Commercial revenues accounted for £341.4 million, followed by broadcast at £299.4 million and then matchday at £71.9 million, for a profit of £80.4 million, nearly doubling the previous year's record profit of £41.7 million.
Matchday revenue saw an increase of £17.4 million (32%) with a 99 per cent occupancy rate at the Etihad Stadium and four more home games played across all competitions. However, the average attendance of 53,249 fans over 19 Premier League games was just shy of their record of 54,130 set in 2018/19.
Broadcasting revenues climbed by £50.4 million over the previous year (20.2%), primarily due to the club reaching and winning the Champions League and FA Cup finals.
Profits also benefited from significant transfer business with £121.7 million generated from player sales, up a significant 79.8 per cent over the previous 12 months.
City earned top spot on the Brand Finance Football 50 list with a brand value of £1.51 billion, passing La Liga side Real Madrid (£1.46 billion). Manchester United were fourth at £1.36 billion.
It marked the first time an English club had earned the top spot since 2018 with the report citing City's decade of dominance on the pitch and the highest revenue of any of the clubs in the report as key reasons for their rise in the rankings.
City also topped the Deloitte Football Money League for the second consecutive year with the biggest revenues of any European football club, ahead of runners-up Real Madrid.
On the pitch, manager Pep Guardiola guided City to a third successive Premier League title, an enthralling 2-1 FA Cup final victory over rivals Manchester United, and a first Champions League title.
The women's team finished fourth in the Women's Super League (WSL), but saw average attendance climb to 3,555, up 84 per cent over the 2021/22 season.
City have been majority-owned by Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Minister of the Presidential Court, since August 2008. In that time, the club has been transformed from the second-best team in Manchester to now the most valuable football club in the world.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
