Aston Villa could be facing challenges in adhering to UEFA’s financial fair play (FFP) rules despite their owners injecting £50 million of equity into the club. Finance expert Stefan Borson, in an exclusive statement to Football Insider, indicated that Villa may not have had the necessary flexibility to have that cash classified as a shareholder loan.
A Companies House submission dated 8 October confirmed the investment of £50 million by Villa's owners, Nassef Sawiris and Wes Edens (NSWE), through a new share issue. This marks the latest instance of their financial backing since acquiring the club in 2018. The support comes on the heels of Unai Emery’s side being fined £50,000 by UEFA last month for the late submission of critical financial information.
UEFA’s Club Financial Control Body (CFCB) evaluates clubs under the newly implemented squad cost rule (SCR), which stipulates that total expenditure on transfers, wages, and agent fees cannot exceed a certain percentage of revenue. For the 2023-24 season, this threshold was set at 90 per cent, which will decrease to 80 per cent for the 2024-25 season and further decline to 70 per cent from 2025 onward.
Aston Villa's latest published accounts for the 2022-23 season revealed revenue at £217.7 million alongside a loss of £119.6 million and a wage bill of £194.2 million. Borson noted, “At the moment, they lose a lot of money, so they need the cash to be put in. They have chosen not to build up a big shareholder loan, which given the changes that are likely to come into those rules, now appears to be a decent bet.” He stated, however, that Villa "probably couldn’t have done the shareholder loan on the back of the UEFA rules" and might be nearing a breach of UEFA FFP regulations.
Aston Villa continues to navigate financial complexities as they aim for success on the pitch while managing compliance with UEFA's regulations.