March 4 – The painful financial turnround of Aston Villa is still on-going though the club maintain that they are on the right track and have “closed a chapter” on a period of heavy losses and are now self sufficient and within UEFA’s financial fair play regulations.
Villa’s chief financial officer, Robin Russell, said: “The 2012-13 accounts effectively close a chapter on a period of heavy losses. As we near the end of the 2013-14 season, the Club is financially self-sufficient, compliant with both UEFA’s and the Premier League’s Financial Fair Play requirements and we look forward to a period of continued growth and progress on and off the pitch.”
The latest figures show a £51.8 million loss in the accounts for 2012-13 but Villa have reduced their operating losses by £9.5 million to £42.6 million. The loss after tax for the financial year increased by £34.1 million to £51.8 million – unlike the previous year Villa did not generate money from player sales.
Turnover for the year was up £3.3 million to £83.7 million, with the club saying this was due to an improved Premier League position, higher average league attendance and progression to the Capital One Cup semi-final.
Owner Randy Lerner waived £90.1 million of loans to reduce the debt load. The loans were converted to equity.
Operating expenses were reduced by £6.2 million, mainly through reducing the wage bill of the playing squad.
Villa said the accounts now more accurately reflect the value of the playing squad. The club and its manager have now worked through what looks to be the toughest part of its financial battle and, crucially, retained Premier League status while doing this.
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