(Reuters) – Aston Villa has confirmed a loss of £119.6 million in their end of year accounts, despite a successful season that saw their return to European football after over a decade. The significant losses have raised concerns about Villa’s future transfer strategies, particularly in light of the league’s stricter financial rules.
Under the profit and sustainability (PSR) regulations, teams are permitted to incur a maximum loss of £105m over a three-year period. However, certain investments in infrastructure, academy, charity foundation, and women’s football can be deducted from the total loss to ensure compliance with the rules.
In a statement, the club stated, “These figures align with our strategic business plan, and we are committed to operating within the Premier League’s Profit and Sustainability rules. The owners of Aston Villa are dedicated to the long-term and sustainable development of the club.”
Despite the financial challenges, Aston Villa is currently in fourth place in the Premier League and on track to secure a spot in the Champions League next season. The club reported a revenue increase from £178.4m to £217.7m compared to the previous year.
The PSR calculations also allow for deductions related to COVID-19 costs incurred during the impacted seasons. In a similar vein, Everton faced a 10-point deduction in November for breaching the profit and sustainability rules, which was later reduced to six points following an appeal.
Furthermore, Everton, along with Nottingham Forest, are facing potential points deductions for separate breaches of the financial rules. Manchester City is also under scrutiny for numerous alleged breaches of financial regulations.
On the sporting front, Aston Villa is set to play Ajax in a Europa Conference League last-16 game on Thursday before hosting Tottenham Hotspur in a Premier League fixture on Sunday. They are currently five points ahead of Spurs, although the latter has a game in hand.
The financial stability and compliance with regulations will be crucial for Aston Villa as they look to continue their progress in both domestic and European competitions. The club remains optimistic about the future and is focused on executing its strategic plan for sustainable growth.
With key matches on the horizon and ongoing challenges in financial management, Aston Villa faces a balancing act to achieve success on and off the field. The club’s commitment to long-term development and adherence to financial regulations will be paramount in shaping its future trajectory.
As Villa navigates through a crucial period in their journey, the support of the owners, fans, and stakeholders will play a vital role in steering the club towards sustained success and stability in the competitive landscape of English football.
(Reporting by Lori Ewing; Editing by Michael Perry)
