Kieran Maguire: Aston Villa bulletproof amid 'surprise' £191m paperwork reveal
There is no immediate risk that Cazoo will be unable to fulfil their financial commitments to Aston Villa.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the current issues facing the used car retailer.
Cazoo have been Villa’s front-of-shirt sponsor since the beginning of the 2020-21 campaign, with the deal set to expire at the end of the current campaign.
It was reported in August that the club was actively looking for a new shirt partner ahead of next season as Cazoo is keen to scale back its sponsorship commitments across the board,
A Companies House submission in October revealed that the firm had lost over £191million in the last financial year.
Maguire claims that while the shortfall will have “surprised some”, it will not have any bearing on Cazoo’s ability to complete their contractual obligations to Villa.
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“The sponsorship arrangement with Cazoo is long-term,” he told Football Insider’s Adam Williams.
“While the losses may have surprised some, it’s common for startup businesses in order to try and achieve market share to have a very large marketing and sponsorship budget. This has proved to be the case with Cazoo.
“The company will have been relatively disappointed with the lack of penetration in markets, It has therefore had to retrench, mainly in mainland Europe but also in its relationship with some of its UK partners, namely Everton.
“As far as Villa are concerned, they will be watching things carefully. They will have seen other sponsors pull out of arrangements leaving clubs without money. That has mainly been in the world of cryptocurrency.
“But as yet, Cazoo seem to have significant funding coming from its equity backers and there’s no indication that there are any significant problems.
“Although, it would be sensible for Villa to keep a watching brief and make sure cash flows are paid on due dates.“