Finance guru details 'huge problem' for Aston Villa after £157m legal ruling
The Premier League’s rules on overseas broadcast money distribution make it harder for the likes of Aston Villa to smash the glass ceiling.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about a recent High Court ruling over unpaid TV cash.
Per BBC Sport on Tuesday (11 January), the Premier League is due a £157million payout from the now-scrapped TV deal with PPLive Sports.
The broadcaster missed two tranches of payment for the rights to broadcast the top-flight in China.
Individual clubs will now be due a rebate when PPLive pay up.
Villa earned £78m in broadcast income over the last financial year, although they will release a fresh set of results in the next few months.
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Plumley analysed the PPLive legal ruling and claimed that the current distribution model is restrictive for the likes of Villa.
“It’s tough to say how much they’d earn in absolute terms,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams
“Up until a few years ago, the overseas money used to be shared equally, so you could divide the figure by 20.
“But now there’s a lump sum that you are guaranteed and the rest is based on merit.
“I haven’t seen any documents on this and the Premier League have stopped publishing the breakdowns, for whatever reason.
“From what I have seen, each place in the Premier League is worth an extra £1.4m. However, that is total rather than one isolated Chinese broadcaster.
“So it’s difficult to put a definitive figure on it in this scenario.
“The huge problem, for me ,is that the merit-based system pulls the top clubs further away from clubs like Aston Villa trying to catch up.
“The club, however, might not get this cash for some time. They should be cautious and write it up as deferred income rather than direct.”
Aston Villa are currently 13th in the Premier League.
They posted a total loss of £99.2m in their last set of accounts.