Manchester City are reportedly cutting their wage bill by about £35 million per year as part of a major squad restructuring under Pep Guardiola. The move comes amid a broader overhaul of the first-team squad, with senior players leaving and younger or lower-wage players being introduced.
The club’s latest financial reports (for the year ending June 30, 2025) show City’s overall salary expenses have already fallen slightly — from around £412 m to £408 m — and further reductions are expected once recent high-earners depart.
The primary reductions come from:
Major Departures: High earners like Ederson (to Fenerbahçe), Ilkay Gündoğan (to Galatasaray), and Kyle Walker (to Burnley) have left the club.
Legendary Exit: Kevin De Bruyne, one of the club’s highest-paid players, also departed at the end of the 2024/25 season after a 10-year tenure.
Loaned Out Players: High-wage players like Jack Grealish (to Everton) and Manuel Akanji (to Inter Milan) have been loaned out.
Financial Landscape:
• Even after the cuts, City remain one of the top spenders in world football, with wages still above £400m.
Strategic Sustainability Planning:
While cutting costs, the club is simultaneously reinvesting in younger, more cost-effective talent to ensure long-term competitiveness.
Latest Additions: The club has brought in players such as Rayan Cherki, Tijjani Reijnders, Omar Marmoush, Nico González, and goalkeepers Gianluigi Donnarumma and James Trafford.
Erling Haaland Extension: Part of the savings from veteran departures is being used to fund Erling Haaland’s lucrative nine-year contract extension, signed in early 2025.
Chairman Khaldoon Al Mubarak has described this period as “pivotal” for the long-term strengthening of the club, signaling a move away from an aging squad toward a new chapter of financial sustainability and tactical evolution
