Aston Villa have been one of a handful of clubs to challenge the Premier League orthodoxy in recent years, but Premier League spending rules are keeping their ambitions in check.
Villa are now eight games without a win in all competitions, and Unai Emery may be relieved that Manchester City’s defeat has lifted some of the pressure off them.
Monday the 2nd of December
Premier League: Chelsea
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Aston Villa
On Thursday, November 28th, the UEFA Champions League will feature Aston Villa.
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Juventus face Aston Villa in the Premier League on Sunday, November 24th.
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Crystal Palace
Liverpool plays in the Premier League on Sunday, November 10th.
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Aston Villa
Thursday, November 7th UEFA Champions League Club Brugge KV
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Aston Villa
Premier League: Tottenham on Monday, November 4th.
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Aston Villa
On Thursday, October 31st, Aston Villa will compete in the League Cup.
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Crystal Palace
On October 27th, Aston Villa will compete in the Premier League.
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Bournemouth Villa had to reduce spending during the summer due to PSR (Profit and Sustainability Rules), resulting in a net loss of approximately £25 million.
Douglas Luiz’s departure to Juventus has arguably had the greatest impact on Villa this season.
However, if the club’s owners – Wes Edens, Nassef Sawiris, and Atairos – had not actively pursued the Brazilian’s departure, Villa would very probably have exceeded PSR for the three-year term ending on June 30, 2024.
In the end, Villa had to use some accounting tricks to stay under the £105 million allowed loss level.
It was not a unique circumstance for them, but the B6 club sold Tim Iroegbunam to Everton for nearly £10 million, while Lews Dobin went the opposite way for a similar sum.
Because fees paid are amortized over five years and fees received are recorded immediately on the balance sheet, this quasi-swap agreement provided Villa with a short-term boost that enabled it to comply with PSR.
The fact that they and half a dozen other clubs were forced to take this road was seen by many analysts and observers as proof that PSR is simply not fit for purpose.
However, the owners are not cutting support – far from it.
Edens, Sawiris, and Atairos have invested about £100 million in the club through share issuances in recent months.
And a new loan from Goldman Sachs secured against Villa’s property assets demonstrates that the club has acquired additional funding in the last seven days – but for what?
To assess the loan’s potential impact on the club, TBR Football consulted with Kieran Maguire, a Liverpool University football finance instructor, Price of Football author, and industry insider.
New Goldman Sachs loan leaves an exit option at Aston Villa for Edens, Sawiris and Atairos
Villa is preparing a massive makeover of Villa Park, and it was proposed that, because the loan’s securities imply that it was for a substantial sum, the extra funds may be used for this project.
However, Maguire believes that the facility will be more likely to meet day-to-day costs, such as wages and transfer installments, during a period of year when cash flow is normally low.
“We don’t know the amount of the loan yet,” he told me.
Furthermore, it is very normal banking practice to secure the loan against all property assets because it provides more comprehensive coverage for you.
“With Atairos, Edens, and Sawiris already having established stakes, borrowing makes sense because adding more equity complicates matters.
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