And City have also relied on owner Sheikh Mansour strengthening the "capital base of the club through the issuing of £169m in new equity" during the year. However, senior figures at City point to the £99.6m reduction in losses as proof of the club's "positive loss trend" and evidence of accelerated movement towards compliance with Uefa's financial fair play regulations, despite FFP strictures allowing total losses of 45m euros (£36.3m) between 2011 and 2013.
City's Abu Dhabi hierarchy believe that the huge losses will not impact on the club's ability to comply with FFP because of a £15m exemption due of their infrastructure and youth development costs. The club also benefit from a one-off rebate on contracts pre-dating 2010 – including the £198,000 a week paid to Carlos Tévez – which amounts to approximately £80m of the loss figure.
However, with City relying on those detailed exemptions to come close to complying with FFP, the club continues to face a challenge in order to avoid falling foul of Uefa's measures.
Their European failure has not helped, potentially costing City around £20m in lost revenue.
Despite the losses and the growth in wages, which account for 87 per cent of the club's turnover, City chairman Khaldoon al Mubarak insists that the results highlight the club's progress towards self-sustainability.
"The hard work of everyone involved at Manchester City over the last four years has begun to create an obvious momentum," Khaldoon said. "However, 2011-12 will always be remembered as a particularly significant year in the history of the Club, a season when Manchester City demonstrated an ability to win in even the most challenging of circumstances.
"It is important to recognise the personal and ongoing influence of Sheikh Mansour bin Zayed on the rapid transformation that is taking place. In the last two seasons we have tasted victory in the FA Cup, experienced the Uefa Champions League, won the Barclays Premier League and with two goals in added time, redefined what is typical of City for a generation of supporters.
"The responsibility lies with all of us to continue the hard work that will ensure that this is only the beginning of a long and successful era for Manchester City."
City's recently appointed chief executive Ferran Soriano added: "What I have found is a club on the verge of a historic transformation, reinforced by a genuine commitment to doing things well. It is a club with a rich history and the potential for an even brighter future."
With City's wage bill unlikely to drop substantially in the next 12 months, however, the club faces a challenge in terms of generated the substantial commercial required to continue the drive towards FFP compliance.
The 10-year Etihad deal is just 18 months old, while the kit deal with Nike is understood to be worth just £12m a year to the club – substantially less than Premier League rivals United, Chelsea, Liverpool and Arsenal.
Manager Roberto Mancini has been told that new signings in January are highly unlikely and it is understood that next summer's transfer window will also follow a prudent blueprint in order to help the club keep pace with attempts to meet Uefa's FFP targets.
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