Aston Villa has recorded a loss of £119.6 million in their most recent financial statements up to May 31, 2023.
This period coincided with Villa’s achievement of finishing seventh in the Premier League, thereby qualifying for European competition.
According to Villa, these figures align with their strategic business plan and remain compliant with the Premier League’s profit and sustainability regulations.
These regulations, known as PSR rules and implemented since 2015-16, allow for losses of up to £105 million over a three-year period.
A statement read: “The owners of Aston Villa remain committed to the long-term and sustainable development of the club, and we look forward to continued progress on the delivery of our strategic plan.”
Deductions from PSR figures can be made for investments in infrastructure, the academy, charity foundation, and women’s football. Clubs are also permitted to recoup losses incurred during the two seasons affected by the Covid-19 pandemic.
In their 2021-22 accounts, Villa recorded a profit of £300,000, primarily due to the transfer of England midfielder Jack Grealish to Manchester City for £100 million.
The club experienced a revenue increase from £178.4 million to £217.7 million in the 2022-23 financial year.
During this period, they invested £63.7 million in new players, including Diego Carlos from Sevilla for a reported £26 million and Philippe Coutinho from Barcelona for £17 million. They also earned £22 million from player sales.
Wage costs rose from £137 million to £194.2 million, and player contract amortization increased by £10 million to £92.5 million.
Managerial changes saw the departure of Steven Gerrard and the appointment of Unai Emery, who led the club to their highest league finish since 2009-10 and secured European qualification for the first time in over a decade.
Last summer, Villa signed France winger Moussa Diaby from Bayer Leverkusen for a reported £51 million and Spain center-back Pau Torres from Villarreal for a reported £31.5 million. However, these transactions will be reflected in next year’s accounts.
Currently occupying fourth place in the Premier League, Villa is on track for Champions League qualification next season.
Everton initially faced a deduction of 10 points, later reduced to six following an appeal, for violating PSR rules during the three-year period leading up to 2021-22.
In January, Everton, along with Nottingham Forest, faced charges for purported breaches in their financial statements up to 2022-23.
While Forest’s case is scheduled for a hearing this week, the date for Everton’s hearing is yet to be determined. However, it must be conducted by April 8. Any subsequent appeals could extend the process until May 24, the week after the conclusion of the season.
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