£225.6m black hole emerges for Aston Villa as Premier League close to agreeing new rule
Aston Villa are set to be hit the hardest after Premier League clubs voted in a new rule to anchor spending in the league.
Of the 20 teams, 16 voted in favour of limiting clubs to spending no more than 4.5 times the lowest earning club’s revenue per season in the Premier League, with Aston Villa joining the two Manchester clubs in voting against the rule while Chelsea abstained according to The Times (29 April).
For those wondering, it means that had the rule been in effect this season no club would be able to spend more than £466m on transfers, wages and agent fees, as that was four-and-a-half times the total revenue of the bottom club from last season.
But a loophole in the rules has seemingly been overlooked, and it’s Unai Emery’s side that look like they will be the ones to suffer from it the most.
The Villans currently sit in fourth place in the Premier League, seven points clear of Tottenham with three games remaining who have an extra two games in hand. Should they maintain their advantage over the remainder of the campaign, they will enter the UEFA Champions League for the first time in their history.
However, that will also mean that they must abide by UEFA’s own FFP and PSR rules which are different from the Premier League’s current rules and the rules they are trying to introduce ahead of the 2024/25 season.
Aston Villa face huge financial dilemma with Champions League football
UEFA profit and sustainability rules are based on the percentages of the individual club’s revenue. It is throughout a three-year period, with 90% of a club’s revenue for 2023/24, 80% for 2024/25 and then 70% from 2025/26 onwards.
This percentage is for player and coach wages, transfers and agent fees. For example, Aston Villa’s revenue was £218m last year (official club website, 4 March). So in theory, they would be able to spend £196.2m in 23/24, £174.4m in 24/25 and £152.6m in 25/26 onwards on transfers, wages and agent fees if they’re in UEFA competition for the season and didn’t increase their revenue.
But because of that, they won’t be able to spend what they’re actually allowed to in the Premier League as that would then take them over UEFA limits. It’s an absolute mess.
Essentially, clubs not playing European football can spend at least £400m-a-season on transfers, wages and agent fees whereas Aston Villa can only spend 80% of their club income for 2024/25 (currently £174.4m) and then 70% from 2025/26 onwards (currently £152.6m).
That is a £225.6m black hole that the owners will have to contend with, all because they have been successful at the wrong time.
Villa may actually be better off not qualifying for Europe in the 2024/25 season to allow them to spend to their potential and keep the squad stronger, although they then risk losing key stars who want to be playing at the highest level as a result.
In other Aston Villa news, Dan Bardell has backed a mooted transfer to happen as a “no-brainer” verdict dropped.
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