Finance guru: Aston Villa have secured funds for £100m plan
Aston Villa have likely taken out a new borrowing facility to finance their stadium expansion plans.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about Wes Edens and Nassef Sawiris’ decision to go to a private lender.
As relayed by Birmingham Live last Thursday (28 July), Villa have struck an agreement with Barclays for a new borrowing agreement.
The exact terms of the deal, which is secured against future TV monies and ticket sales, have not been revealed.
Villa announced plans in June to boost capacity at Villa Park to over 50,000 in a construction project which will reportedly cost £100million.
The new borrowing facility is likely to have been taken out with the stadium rebuild in mind, suggests Plumley.
“It could be a loan agreement or it could involve an overdraft,” he told Football Insider’s Adam Williams.
“In terms of why they have gone for a private bank instead of the owners, this way creates opportunities for short-term cash flow. There is a lot of noise around this that it’s probably linked to the stadium expansion.
“It’s secured against TV revenues, which we have seen a few clubs in recent years. So that is not unusual and fits with the trend. This way, the money gets in quicker and can be used straight away.
“Have the owners got that amount of money floating around in cash? It depends on how their assets are structured. Also, there is FFP in the background.
“I think clubs think this is a better way to get things cracking quicker if these agreements are on favourable terms.”
In other news, Aston Villa in advanced talks to agree Douglas Luiz deal after Newcastle United bid.