Aston Villa: Premier League agreement needed after new PSR update at Villa Park
Dan Plumley has insisted that Aston Villa will need to come to an agreement with the Premier League over deductible figures in their PSR situation.
Clubs can still use the impact of COVID-19 given the £105million loss limit for Profit and Sustainability goes back three years, with Aston Villa announcing losses of £119.6million in their latest accounts.
The football finance expert admitted that COVID and infrastructure costs can come off that huge figure, but will need to be agreed with the league first.
“It’s a really grey area in the regulation and how we are set up at the minute,” he exclusively told Villa News.
“We never see that detail so you are kind of guessing a little bit, so what happened was the 2020 and 2021 periods were rolled together for the purpose of COVID which is where the biggest impact was in terms of the attendances and the revenue hits clubs were facing.
“They averaged those two years out and obviously, what that then means in a three-year calculation that will then fall away.
“If you look at where we are right now with Villa, you’ve got 2023 and 2022 accounts, but then 2021 and 2020 are the average years for COVID so you would expect that will fall away in the next set of accounts that we see but it will still be factored into the calculations for now which again, we have to make that adjustment based on what we know.
“The club has said it’s around £50million that will need to come off if it is agreed, but they won’t be able to use that forever.
“From a PSR calculation, you can put it in your accounts as that is the club saying this is the money we expected to make had we not had the pandemic and it will have been calculated on reasonable calculations for Villa’s revenue position, attendance and what they lost, so they will have worked that out.
“The club can state that in their annual reports, no problem, but from a PSR calculation, that would need to be agreed with the Premier League to take that figure away.”
Aston Villa face PSR breach in the Premier League?
Thankfully, the club have already confirmed that not to be the case with other examples such as Everton and Nottingham Forest spooking all clubs right now.
With a £50million instant revenue boost on the cards for Champions League qualification, things could start to look much rosier financially very soon.
In other Aston Villa news, the defensive nightmare at Villa Park may have been resolved.
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