City halve losses
Manchester City are confident of breaking even as early as next year despite losses of £51.6million last season and a record wage bill.
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City have halved their losses for the second consecutive year, from £97.9million in 2011/2012 and £197.5million the season before.
That has led to bullishness among club executives that they are on course to be in the black from next season and will comply with UEFA's financial fair play rules.
City's turnover was a record high of £271million, up from £231million and the second-highest in the Premier League behind Manchester United.
In terms of wages though, City are by far the biggest payers in the top flight with a 15 per cent rise to £233.1million - compared with United's £180million.
City's chief executive Ferran Soriano said significant strides had been taken in cutting losses and boosting turnover, and the club is now debt-free.
He said: "Growing revenues and controlled expenses are bringing the club to break-even in the immediate future and profitability thereafter."
City will have extra income to look forward to this season from new commercial contracts, around £25million extra from the new Premier League TV deals, and more cash from the Champions League having qualified for the knock-out stages for the first time.
In terms of UEFA's financial fair play rules (FFP), club insiders believe that once the money spent on facilities and youth development are taken into account they will be within the 45million euro (£37million) limit of losses allowed by Europe's governing body.
In the club's annual report, City chairman Khaldoon Al Mubarak said winning trophies was the key to the club's strategy.
He added: "We have every reason to be optimistic. The core group of players we have assembled in recent years has shown that it has what it takes to prevail in the most challenging of circumstances.
"With the arrival of Manuel Pellegrini and the further strengthening of our squad, Manchester City has entered the 2013-14 season with a renewed sense of confidence for the future.
"The club has made no secret of the fact that winning championships is at the heart of its strategy. However, we are also seeking to create teams that play creative, entertaining football, and at the same time to continue to build a socially responsible and commercially successful off-field operation to harness the opportunities generated by our on-pitch performance."