Rangers woe a warning says Aston Villa boss Alex McLeish

Alex McLeish today admitted the financial crisis at former club Rangers reinforces the need for Premier League clubs such as Aston Villa to balance the books.

McLeish was recruited by owner Randy Lerner last summer with a mandate to bring down Villa's wage bill.

Villa sold high earners Ashley Young and Stewart Downing last year while Nigel Reo-Coker was released and there will be further cost-cutting measures this summer.

McLeish was shocked by events at Ibrox but believes it vindicates Villa's policy to cut their cloth accordingly while money is tight.

"I didn't think it was ever going to happen to somebody like Rangers. It is horrible and unbelievable," said the Villa boss.

"Some huge clubs have been lost from the top division in England. And that's been as a result maybe of the finances and just trying to buy titles and cups."

McLeish believes that, despite the need for austerity, there is still scope for Villa to be competitive in the future without splashing out megabucks on transfer fees.

"If you can balance things it doesn't mean you can't progress as a football club," added McLeish.

"If you buy prudently and diligently then you can still enhance the quality without spending the earth."

And McLeish was coy on the prospect of signing Scotland Under-21 winger Gregg Wylde on a short-term deal until the end of the season.

The youngster quit Rangers this week and is free to join another team.

"It is not something I have totally dismissed, but he's still a kid," added McLeish.

"I think he is a player for the future."