Manchester City's debt level has risen to €83.3 million despite positive signs that financially, the club is heading in the right direction.
On-going costs of transfers involving players such as Robbie Fowler and Nicolas Anelka, means City have not been able to make significant inroads into their debts.
Instead, they posted a loss of €24.1 million for the year ending May 31, 2004, a rise of €2 million from the previous 12 months, causing a subsequent increase in the overall debt, €11 million of which is regarded as `soft loans' from
chairman John Wardle.
There was some good news, though, as turnover increased dramatically, up over 26% to £88.9 million, despite a reduction in merit payments due the City's lowly 16th place finish in the Premiership last season.
In addition, the key wage-turnover ratio fell from 72% to just 61%, in line with the figure finance experts believe is sustainable over the long term.
However, unless City can attract new investment into the club, it appears unlikely manager Kevin Keegan will have cash to spend during the January transfer window.
