Finance Expert: Aston Villa look for new capital injection as more shares made available
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist, each week he’ll be giving his views on the biggest talking points at Aston Villa
Dan Plumley has insisted that Aston Villa could be looking for a straightforward cash injection with more shares issued back in October.
The Finance Expert admitted that the investment is fine with Financial Fair Play rules as you can inject up to £90million over a three-year period.
Kieran Maguire shared the Companies House document with the owners pumping £15.5million into the club with fresh shares being issued at Villa Park.
“They’ve done it a few times haven’t they?” he exclusively told Villa News.
“If you compare that to using third-party lenders then you’ve got round repayment structures if there are interest rates attached and all that, so if your owners are willing to raise shares and put money in through this type of investment, we know that it is ok within the ground of FFP as you can inject so many millions, I think it’s £90million over a three-year period.
“We know Villa have had losses in recent years, we know clubs are still struggling post-pandemic so this could just be a straight-forward capital injection to offset some of those problems and make the books look a little better.”
Christian Purslow and the board will likely have been looking to avoid the interest and future repayments of taking big loans as other clubs have done in recent times.
With those post-pandemic losses affecting every club too, it is no surprise to see not only Premier League clubs, but many around looking for new cash boosts.
In other Aston Villa news, the Lions have now confirmed the backroom staff of Unai Emery ahead of his arrival