Manchester City have announced annual losses of £97.9million, despite winning the Premier League.
And although the sum is still huge, it is less than half the £197.5million announced 12 months ago.
Man City are also reporting turnover of £231.1million in the 2011-12 season, the highest in the club's history, which underlines the rapid progress being made as they establish themselves as one of Europe's elite clubs.
And they are confident even the huge losses confirmed today will not have an impact on their ability to meet UEFA's strict Financial Fair Play guidelines as £15million comes from infrastructure and youth development costs.
Their chief executive Ferran Soriano said: "What I have found is a club on the verge of a historic transformation, reinforced by a genuine commitment to doing things well.
"It is a club with a rich history and the potential for an even brighter future."