The figure shows the sheer scale of the vast investment into City by owner Sheikh Mansour and the Abu Dhabi United Group.
Wage costs of £133.3m exceeded turnover (£125m), which in any normal business would be unsustainable.
"Two years ago I was fortunate enough to become part of the Manchester City story and I remain grateful for the warmth of the welcome that you have given me," Sheikh Mansour said in a letter posted on the official website.
"The ownership of a club like Manchester City, with such a rich heritage and diverse community of stakeholders, carries a unique set of obligations to the fans, staff and broader Manchester community. This is something I do not take lightly.
"Therefore the challenge I set my board and executive leadership team is to develop City so that it is one of the most successful clubs both on and off the pitch, but to do so without losing any of the characteristics that make it so special."
Source: PA
Source: PA