Aston Villa confident of complying with Financial Fair Play despite big losses

A number of options are thought to be on the table, including the sale of players this summer to ensure the club remains within the regulations.

Figures released on Wednesday for the previous financial year revealed Villa lost £36.1million as former owner Tony Xia’s gamble to reach the Premier League ended in failure.

It sparked concerns the club might be at risk of breaching FFP, which restrict the total losses clubs can make over a three-season cycle.

Writing on behalf of the board, chief executive Christian Purslow admitted FFP regulations would provide a ‘significant challenge’ while Villa remain in the Championship. But he added: “The directors are actively seeking to implement actions to avoid future breaches of financial fair play.

“The directors believe they will remain compliant with the EFL profit and sustainability rules for the 2018-19 season.”

He continued: “The board recognises there are a range of opportunities available and depending on the impact of external factors which are always uncertain, including the market conditions prevailing in the 2019 summer transfer window, the board will determine the measures adopted in relation to ensuring this compliance.”

The accounts revealed a net spend on players of £10.4m since the arrival of majority shareholders Nassef Sawiris and Wes Edens, who rescued the club last July, after it had been plunged into a financial crisis when Xia’s cash supplies ran out. They have since injected £68million to keep Villa afloat.

The accounts for the club’s parent company Recon Group laid bare the extent of the gamble taken by Xia, with wages climbing nearly £12m on the previous year, to £73m, despite a fall in revenues.

Broadcasting income was down from £48m to £40.3m, though gate receipts rose from £10.7m to £11.8m as Villa challenged for promotion.

Sponsorship was also up, from £2.7m to £4.7m, with the increase thought to be connected to the renaming of Villa’s Bodymoor Heath training ground by the Recon Group.

Commercial income, including merchandising, was down from £12.3m to £11.6m.

The club, meanwhile, received £3m in compensation from the HS2 rail project, which will cut through part of the training ground.