Aston Villa are backed by owners with near-limitless wealth but will be constrained by financial fair play in the transfer market.
That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively after Villa confirmed the signing of Emiliano Buendia from Norwich yesterday.
The total cost of the deal including wages and add-ons will run to at least £57million, as revealed by this site on 7th June.
But Maguire explains that Villa’s future spending will be tethered by the league’s expenditure caps.
“It comes down to the owners,” he told Football Insider correspondent Adam Williams.
“If we take a look at Aston Villa’s 2020 accounts, they spent £156m that year and their net spend was £152m.
“With Wes Edens and Nassef Sawiris, we have to separate the enormous wealth of the owners, which from a footballing perspective is limitless, from the club. We’re talking not far off Abramovich levels.
“The constraint here is going to be financial fair play. Their spending power is significant but they lost £100m in 2020 and that was off the back of their first season in the Premier League.
“The [financial fair play] loss limit is £105m over three years. That is going to be the anchor as far as Villa’s spending is concerned.”
Edens and Sawiris acquired the club in 2018 after buying out former owner Tony Xia.
The club caveated their £100m loss in 2020 by explaining that £36.1m had been lost due to pandemic-related issues.