Aston Villa: Balance sheet examined after new £190m+ reveal at Villa Park
Dan Plumley has shared the difference between the wage costs and player amortisation bill at Aston Villa after their latest accounts were revealed.
After losses of £119.6million were confirmed, it was shared that the overall employee wage bill sat at £192.6million, with the amortisation of player contracts at £92.5million.
Plumley explained that the salary cost is the cost to the business, whereas the amortisation fees link to the value of the balance sheet and the overall worth of the business.
“The wage bill is obviously what you are paying your players,” he exclusively told Villa News.
“That’s their salary cost, that’s their cost to the business.
“The amortisation cost is how you record that player asset on your balance sheet which is done by dividing the transfer fee by the number of years of the contract, so the figure you see for amortisation in the club accounts is the total of where the player contracts are on the books of Aston Villa for that year and that will be a total for all players on all contract lengths.
“The wage bill is the expense that you pay the players so that’s how the figures are reported from a wages perspective, and from an amortisation perspective which links to the value of your balance sheet and the overall worth of the business in players being classed as intangible assets to a football club.”
Are Aston Villa in PSR trouble?
Thankfully, despite the huge losses that were recorded, the club moved swiftly to confirm that they are working within the regulations of the Premier League.
That is mostly down to the deductibles that can come off the losses, something that will need to be agreed with the Premier League.
In other Aston Villa news, Dan Bardell has reacted to news that a permanent transfer has been mooted for one high-earner at Villa Park.
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