Newcastle United and Aston Villa have been unable to maximise the backing of their owners
The Premier League’s “perverse” financial regulations, which keep teams like Newcastle United in the “same cycle,” have drawn criticism from Aston Villa.
Premier League teams are still only allowed to lose a maximum of £105 million over a rolling three-year period, even if they have consented to test squad cost regulations and top-to-bottom anchoring in shadow. Even though allowed losses haven’t changed or increased in accordance with inflation since the regulations were initially established more than ten years ago, Aston Villa’s attempt to raise this amount to £135 million at the premier league’s annual general meeting earlier this summer was rejected.
As a result, teams with high aspirations like Newcastle and Aston Villa are now at a disadvantage. Despite upending the status quo and earning berths in the Champions League in 2023 and 2024, respectively, Newcastle and Aston Villa have not been able to fully capitalize on the support of their rich owners because their revenue streams are still far smaller than those of teams in their immediate vicinity. Director of football operations at Aston Villa, Damian Vidagany, is probably not in need of any reminders about that.
He said to reporters, “We have no debt.” We are a well-balanced club with dedicated owners. Although we don’t owe anyone money, teams with more income but debt may afford to spend far more than we can.
“Where does that make sense? Tell me. Numerous clubs take out loans. Even without this issue, we are still unable to make purchases.
The method is twisted since it doesn’t take into consideration the level of dedication, money, or account quality of your owners. Because you don’t have additional revenue, you are unable to expand.
“What do you need in order to earn revenue? to triumph. To win, what do you need? to use up. However, you are unable to spend. Thus, if you don’t spend, you don’t succeed, you don’t make money, and you never break free from this cycle.
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