The madness of football - Man City losses are £121m!

Manchester City lost a staggering £121m in the last financial year.

The club's annual report, released today, also reveals the Blues spent more on wages than their entire income for the 12 months up to 31 May 2010.

Their turnover - £125m - was surpassed by the £133m splashed out on salaries as a host of new stars arrived at Eastlands.

The figures, which come after mega rich Sheikh Mansour bin Zayed Al Nahyan's first full year in control, show income went from £87m in 2008/09 to £125m, a rise of 45 per cent.

The Blues now face a fight to break even and meet European governing body Uefa's financial regulations. The Uefa rules stipulate clubs can lose a maximum of £39m from now until 2014 or face sanctions which could see sides banned from competitions.

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The 85-page report also reveals that since May net expenditure on transfers has been £96.6m.

That includes the acquisition of stars including David Silva, Jerome Boateng, Yaya Toure, James Milner and Mario Balotelli and is offset by the departures of players such as Stephen Ireland and Robinho.

Since the end of the financial year over 25m shares were issued for £53.2m cash to parent company Abu Dhabi United Group Investment and Development Limited.

The report largely puts the loss down to a mammoth transfer spree which saw a galaxy of big name signings head to Eastlands including ex-United striker Carlos Tevez and Arsenal pair Emmanuel Adebayor and Kolo Toure.

Finance chief Graham Wallace says players were brought in 'to address historical needs'.

Chairman Khaldoon Al Mubarak admits the club fell short of its ambitions last season when it missed out on qualifying for the Champions League, football 's premier competition.

Despite that he says: "We are where we expected to be at this stage of the club's transformation."

Off the pitch City recruited an additional 106 non-playing staff.

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