Manchester City post record loss
The figure, announced on the club's website on Wednesday, does not include last summer's 117 million pounds spending spree on Emmanuel Adebayor, Kolo Toure, Carlos Tevez, Roque Santa Cruz and Joleon Lescott.
It does include the previous year's 50 million pound layout on Brazilian duo Robinho and Jo following the arrival of new owner Sheikh Mansour bin Zayed Al Nahyan in September 2008.
Turnover increased by six percent to 87 million pounds, while attendances rose to 42,890 from an average of 42,081 in the previous season.
Ticketing revenues were ahead by 1.8 million pounds and TV revenues up 12 percent to 48.3 million pounds, mainly as a result of City's extended run in the UEFA Cup.
Player salaries rose to 39.4 million pounds from 25.4 million in the previous year.
City also announced that, just as Roman Abramovich has done at Chelsea, Sheikh Mansour has turned the 304.9 million shareholder loans he made to the club into equity
He has also purchased a further 89.6 million pounds-worth of shares as a "show of commitment."
"The financial year to May 2009 marked the beginning of a period of significant planned investment in all areas of the club; the playing squad, the youth academy, infrastructure, website and technology applications and our people," City said on the website.
"Not surprisingly, this substantial investment has had a significant impact on this year's financial results. This investment is also forecast to similarly impact the financial results of the next several years as the club seeks to achieve success both on and off the field."
The club's chief financial and administration officer Graham Wallace said: "The financial results reflect a period of rapid change at the club, the result of long-term planning and investment by the Board and our owners, to create a sustainable business in the future.
"We have always said that this transformation will take a number of years and these figures reflect that.
"The owners' decision to convert debt to equity is in line with their previously-stated financial strategy and is fantastic news for supporters of Manchester City, whose club is now on a secure financial foundation that gives a tremendous platform to build from in future years."