By David Gold
March 2 – Aston Villa have lost a record £54 million ($86 million/€64 million) for the year ending May 31, 2011, though they have made £92 million ($146 million/€109 million) in revenues, also a new club record.
Around £24 million ($38 million/€28 million) of the losses can be attributed to the signing of Darren Bent (pictured).
After the accounting year, Villa sold Stewart Downing (pictured below left) and Ashley Young (right) for close to £40 million (/$64 million/€47 million).
However, figures do not include monies spent on managerial changes, with Gerard Houllier having left the club last summer, subsequently replaced by Alex McLeish.
Aston Villa are currently struggling at 15th place in the Premier League and although they are eight points clear of the relegation zone, they are still in danger of being dragged into the bottom three.
Relegation, though it seems an outside chance right now, would be financially damaging for Villa, given the context these figures place on their situation.
More positive news is the increase in commercial revenues, driven mainly by a new shirt sponsorship deal with FxPro which began in the 2010-2011 season.
Villa’s wage bill should also reduce significantly after the departures of squad players on large salaries last season, such as Steve Sidwell, Curtis Davies and John Carew.
Cause for concern is the club’s average attendance at almost 3,000 lower this season – 34,273 – compared to last – 37,193 – which could reduce gate receipts despite a hike in season ticket prices for this season.
If Villa finish in their current position of 15th, they can expect to take £7 million ($11 million/€8 million) less in prize money at the end of the season.
The club insist they are committed to complying with UEFA’s new financial fair play rulings, which limit teams to losses of €45 million ($58 million/£38 million) over the first two years of its implementation, which began this season.
In the long term, the rules are intended to force teams to break even.
The club’s chief financial officer Robin Russell said: “Given the challenging economic environment that we have been experiencing in the West Midlands, and indeed globally, we are pleased with the positive trends in our financial performance.
“The Board of Aston Villa are confident that the actions taken since the end of the 2010-2011 financial year have galvanised the long-term sustainability of the club and have also given us a better financial platform on which to build for future success.
“Our objectives are to compete strongly on the pitch and to achieve sustainability as well as compliance with UEFA’s Financial Fair Play requirements.”
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