Aston Villa can breathe a sigh of relief that their financial fair play losses will be reduced next season.
That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively after Villa published their annual financial report.
The club posted a £99.2million loss in a year ravaged by the pandemic, with £36.1m of the shortfall attributed to Covid-related issues.
Villa have ensured Premier League survival in 2020-21 and will embark on a third successive season in the top-flight
Maguire explains that the nature of FFP’s three-year assessment period means that this will give them financial breathing space.
“The losses are significant,” he told Football Insider correspondent Adam Williams.
“They also lost large sums of money in the last two years in the Championship. In getting promoted they lost £68m.
“But they will be able to reduce those losses when it comes to FFP. They sold Villa Park and they managed to get compensation for the part of the training ground that was sold for the HS2 rail project. Those have helped.
“The advantage of being in the Premier League is that you’re allowed to lose £35m a year over the rolling three-year assessment period.
“If we take a look at the 2020-21 assessment period, they’ve got two years in the Premier League and one year in the Championship.
“So that’s two years at £35m and one year at £13m, which is all you’re allowed to lose in the Championship.
“So that’s £83m in total. Next season, it will go up to £105m because of the three-year rolling assessment period.”
Villa survived by the skin of their teeth last season but have enjoyed a comfortable 2020-21.
Dean Smith’s side are currently 11th in the Premier League with 44 points on the board.
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