‘Aston Villa have one-week deadline as controversial major transaction mooted’
Aston Villa will need to make a major move as the accounting year comes to an end on June 30 and the club are at risk of failing PSR.
The Villains’ failure to qualify for the Champions League, having suffered defeat at the hands of Man United on the final day of the season, added serious pressure to the club’s finances.
Villa‘s wages as a percentage of turnover last season were at 91%, the highest figure in the Premier League, and the club missed out on an estimated £100million [BBC Sport] boost to revenue by failing to qualify for UEFA’s premier club competition.
As such, The Athletic determined the Midlands side was the most at-risk team in the Premier League of a sanction for failure to comply with the league’s profit and sustainability rules (PSR).
Villa look increasingly likely to be forced to sell a significant asset to avoid a sanction. Man City are interested in Morgan Rogers, whilst Arsenal’s links to Ollie Watkins have resurfaced.
Another option exists to the club, but football finance expert Stefan Borson warned the club has just one week before the Premier League’s accounting year ends.
Aston Villa have one week to sell women’s team
In May 2024, Chelsea sold their women’s team to BlueCo, the consortium that owns the club, for £198.7m [BBC Sport].
The decision was highly controversial, and the Premier League moved to close the loophole the Blues had exploited last summer.
At the annual general meeting (AGM) last year, it was put to a vote, but the league’s clubs felt the wording was not specific enough and “would also stop them declaring income from selling assets such as property to unrelated parties” [The Times].
The issue arose at this year’s AGM, but given that Chelsea are now in the strongest PSR position in the league thanks to that sale, there was not enough support for the issue to be voted on, and the option for clubs to sell their women’s team remains open [The Times].
But as pointed out by Borson on X, the Premier League’s accounting year comes to an end on June 30, meaning that Villa have just one week to sell their women’s team, or risk failing to be PSR compliant, with that controversial move their best avenue to providing serious impact on the accounts.
Aston Villa must invest this summer despite PSR issues
Football Insider Verdict
It sounds silly to say, considering the club is at genuine risk of being sanctioned by the Premier League, but Villa must spend big this summer.
Over the last decade, the Midlands club have worked their way from toiling in the Championship to a team competing in the Champions League.
But the Premier League is ruthlessly competitive; if you’re not moving forward, then you’re inevitably going to slide backwards.
Newcastle have a stronger squad than Villa and despite their slow start, will likely improve this summer, whilst Chelsea have already signed Liam Delap and will undoubtedly add more quality to their side.
There is also no guarantee the Premier League will be able to offer an extra Champions League place this year, meaning one less spot to fight for.
If Villa miss out on a place in Europe’s most esteemed competition for the second year running and the cash boost on offer, they may face another decades-long hiatus from playing at Europe’s highest level.