Manchester City are executing a significant financial strategy, cutting their annual wage expenditure by more than £35 million as part of a major transformation of Pep Guardiola's playing squad.
A Strategic Shift Towards Youth
The club's latest financial accounts, published on Tuesday, reveal a continued but slight reduction in their wage bill. It now stands at £408 million for the year ending June 30, down from £412 million the previous year. However, this figure remains the highest in the Premier League.
Critically, these accounts do not reflect the summer exits of several high-earning senior stars. The departures of goalkeeper Ederson to Fenerbahce, midfielder Ilkay Gundogan to Galatasaray, and defender Kyle Walker to Burnley are not included. Furthermore, Jack Grealish and Manuel Akanji left on loan for Everton and Inter Milan respectively, with permanent moves anticipated next summer.
The Financial Impact of Departures
This quintet of players represented approximately £50 million per season in basic salaries. The club expects this substantial cost to be almost entirely removed from their books by the time the 2026 accounts are prepared. This marks a pivotal shift from two years ago, when the wage bill peaked at £423 million during the historic Treble-winning season.
While established stars have departed, the club has invested in younger talent. New signings such as Rayan Cherki, Tijjani Reijnders, Omar Marmoush, and Nico Gonzalez are factored into the current wage total. The accounts also include the massive new nine-year contract signed by striker Erling Haaland in January, whose wages are now a notable exception within the squad's structure.
Summer arrivals James Trafford and Gianluigi Donnarumma, who joined after the June 30 reporting date, are not included. The two goalkeepers are estimated to earn a combined £15 million per year.
Broader Financial Context and Future
Despite reducing player wages, the club expanded its overall staff, hiring 59 extra employees across football and commercial operations. Chairman Khaldoon Al Mubarak framed the period as crucial, stating: "I believe that we may look back on this year as one that was pivotal for the ongoing and long-term strengthening of the club."
He emphasised the club's "focus on continuous improvement" both on and off the pitch. In comparison with rivals, Liverpool's most recent wage bill from 2024 was £386m, with Chelsea, Arsenal, and Manchester United all above £300m. City also posted revenues of £694 million and a pre-tax loss of £9.9 million.
In a positive infrastructure update, the club confirmed that the expanded North Stand at the Etihad Stadium is on course to open before the end of the current season, signalling continued growth alongside fiscal recalibration.
