Finance guru issues ‘£105m’ Aston Villa transfer claim as new funds secured
Aston Villa have injected £30million worth of shares to give themselves maximum room to manoeuvre in terms of Financial Fair Play – and that means a £105m allowance over three years.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the latest news from behind the scenes at Villa Park.
A Companies House submission last Wednesday (10 August) revealed that Villa have issued 30million new shares at £1 each.
It is their first share injection since a £10m stimulus in April last year.
The club has since posted a £32m loss for the 2020-21 financial year, which followed £90m and £69m shortfalls in the previous two annum.
Premier League clubs are allowed to lose up to £105m over three years under current profit and sustainability rules as long as £90m of that is covered by the club’s owners.
The rules have, however, been relaxed somewhat in order to accommodate Covid-related losses.
Plumey claims that Villa will now be able to spend more in the transfer market as a result of the latest share injection.
“For me, it points to movement in the transfer market,” the Sheffield Hallam University expert told Football Insider’s Adam Williams
“It could also be used for longer terms investment projects because we know they are looking to add more seats to Villa Park.
“But normally when we see this sort of thing, it means more activity in the transfer market.
“It comes back to the regulations. You are only allowed to lose so much under FFP rules but with top-ups from the owners like this, that’s when you get up to the value of £105m over three years.
“So yes, I think it is there to fund activity in the transfer market first and foremost.”
In other news, Aston Villa star Diego Carlos out for season in shattering blow.