Now that the accounts of Aston Villa's holding company (Recon Ltd) have been published it is possible to get a more accurate idea of the club's finances. Aston Villa trading losses exceeded £1 million a week in 2017/18 or a total of £71m.
Broadcasting, including Premier League distributions, accounted for 59 per cent of the £68.6m turnover. Parachute payments were down by £8m. Sponsorship was up because of the training ground deal and represented 7 per cent of turnover. Gate receipts accounted for 17 per cent.
Wages were up £12 million to £73m as Villa count cost of John Terry and other loan deals but other employees count the cost as staff numbers fall by 270. Villa paid £106 in wages for every £100 of income in 2017/18. Income likely to fall by £25m in 2018/19 as in the final parachute year.
Villa claim youth development spending, which is excluded from FFP calculations, rose by £5m in 2017/18. Club received £3m land compensation, perhaps HS2 related?
Villa spent just £1.8 million on new players in 2017/18 but had sales of £32 million. Whilst Villa didn’t sign many players in 17/18 they did have to pay £41 million in instalments on old purchases. Share issue brought in £69 million to rescue the club.
Villa may be okay in terms of financial fair play as some costs are excluded. Kieran Maguire of the PriceofFootball has estimated that FFP losses for last two seasons are £25.1 million so maximum loss for 2018/19 is £13.9 million. Will be tough due to parachute payments falling but not impossible.
Comments
Post a Comment