The Premier League giants posted revenues of £473.4m in the 2016-17 financial year, with profits down from £20.5m to £1.1m, though the accounts cover a 13-month period rather than the usual 12.
The club's wage bill is responsible for much of the increased spend, having risen from £197.6m to £264.1m for the 13-month period following Pep Guardiola’s arrival as manager.
However, Manchester City are just one of eight clubs comprising the City Football Group and the annual report went on to mention how the business structure allows players to develop and yield profit.
The prime example is that of Australian midfielder Mooy who was sold by City to Huddersfield Town for £8m after being signed from sister club Melbourne City for an undisclosed fee.
The report said: “We are now seeing how our growing network of clubs can translate both into commercial opportunities for the group and development opportunities for players.
“As an example, we saw young Australian Aaron Mooy, formerly a Melbourne City player, join Huddersfield Town.”
City’s record £473.4m revenue was a 21% increase on the previous period’s figure of £392m, with the extension to 13 months a one-off to synchronise the club with CFG’s other entities.
The added month of June adversely affected profits because income is reduced markedly in the close season.