NSWE reasons shared after brand new Aston Villa loan developments
Aston Villa may have taken a new loan out to possibly manage cash flow issues, Dan Plumley has said.
NSWE have agreed to a loan from Kroll Trustee Services which was secured on properties owned by the club and commercial contracts, after documents were confirmed on Companies House.
Plumley, a football finance expert, admits that it’s common practise in football with cash flow the main reason behind it given the different points clubs receive windfalls through a season.
“It’s tricky to answer on the direct why,” he exclusively told Villa News.
“I’ve not seen anything on this one in terms of what Villa are saying this is being used for.
“It’s common practice in football, we know that typically to manage cash flow over the course of the season, so if you look at how that works, clubs will get season ticket money up front but then won’t get much in terms of big-ticket revenue all the way through because it’s just the matchday add-ons, there will be prize money from competitions, broadcast money is not paid in one hit, it is in instalments.
NSWE take new loan at Aston Villa
“So, typically, these things are done when you haven’t got the cash flow coming in on a certain month as much as it would be in other months and you can use that to manage cash flow.
“That is the best guess exercise as always on what that is, but we’re not sure within that what cash is being used for what operations.”
With Champions League football adding significant windfall to the club this season, it may be somewhat of a surprise that this loan was taken.
It does highlight the cash flow issues that clubs have to manage though, with the money coming in at different times of the season, making this frequent in the business.
In other Aston Villa news, an exit from Villa Park is on the cards for one player after what has happened this season.
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