Kieran Maguire: Aston Villa could shell out '£400m' as record-breaking transfer plan revealed
Aston Villa could theoretically spend as much as £400million on new signings this summer because of the sale of Jack Grealish last August.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about Villa’s room to manoeuvre in terms of financial fair play.
An Aston Villa source told this site last Friday (1 April) that Wes Edens and Nasseff Sawiris could bankroll up to £150m of new signings this summer.
It is understood that the owners are prepared to fund a “huge” overhaul and break their transfer record once again.
Villa academy product Grealish, 26, signed for Man City in a British record £100m switch last summer.
The nature of amortisation in accounting means Villa could potentially spend four times that figure in the upcoming window, explains Maguire.
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“The sale of Jack Grealish, because he came from the academy, is £100m of pure profit,” he told Football Insider’s Adam Williams.
“If you sign a player on a four-year contract, you get £400m spending potential.
“That is because of the way that amortisation works, with incoming transfer fees split over the length of a player’s deal.
“But for outgoing transfers, you tend to get all that money in one swoop as far as the accounts themselves are concerned.”
Villa are currently 16th in the Premier League after a run of four successive defeats.
Steven Gerrard’s side are next in action against 10th-place Leicester City on 23 April.