London - Premier League champions Manchester City's hopes of complying with UEFA's Financial Fair Play (FFP) rules received a boost on Wednesday when they announced a significant reduction in their losses.
The club's annual report showed record revenues of 346.5 million ($544 million, 442 million euros) for the year ending in May 2014, while their overall losses halved to 23 million.
European governing body UEFA fined City 16.2 million in May for contravening FFP rules by spending beyond their means, but that figure will be taken out of the equation in this year's calculation.
"The club is where we hoped it would be when we began this transformation six years ago," chairman Khaldoon Al Mubarak said in the report.
Also read: Kompany out of Man City's Sunderland trip
"Now we have moved beyond the period of heavy investment that was required to make the club competitive again, it is commercial growth of the kind we are seeing today that will underpin and support our operations in the future."
City were additionally given a conditional fine of 32.8 million last season, but the club are confident that their latest financial results mean it will not take effect.
The club were also restricted to naming a 21-man squad for this season's Champions League and were told that they could not publish losses exceeding 15.7 million in the 2013-14 campaign.
As the 16.2 million fine will not be taken into account by UEFA, City have complied with the latter restriction.
Owner Sheikh Mansour bin Zayed al-Nahyan has invested over 1 billion since acquiring City in 2008, attracting the attention of UEFA's accountants, but the club appear to be moving towards a model of sustainability.
City recorded losses of 197.5 million in the 2010-11 season, but that figure has fallen progressively since then.
Since Sheikh Mansour's arrival, City have won two Premier League titles, in 2012 and 2014, as well as the 2011 FA Cup and this year's League Cup.