Today, Aston Villa has posted it’s accounts for the year ending May 31, 2013.
Obviously, it doesn’t count the last two transfer windows of players coming in and out.
While posting a loss of £42.6m, Lerner has essentially absorbed £90.1m of loans, which helps level off the debt and set Villa up for financial stability. In terms of out-going players, there’s a two or three loose strings to tie up this summer, but with those taken care of, the next transfer window should see the purse strings open up more freely.
The summer of 2014 should certainly spell out to Villa supporters how the club’s ambition stands. UTV
Aston Villa financial statement
Aston Villa announces the waiving of £90.1m of loans from its parent company, vastly reducing the Club’s debt load and accelerating the process towards long-term stability and financial self-sufficiency.
These loans were converted to equity in December 2013, further strengthening the Club’s capital base.
Turnover for the year ended May 31, 2013 was up £3.3m to £83.7m and operating expenses before exceptional items down £6.2m.
The Club’s operating loss before exceptional items fell by £9.5m to £42.6m.
Robin Russell, Chief Financial Officer, said: “The 2012-13 accounts effectively close a chapter on a period of heavy losses. As we near the end of the 2013-14 season, the Club is financially self-sufficient, compliant with both UEFA’s and the Premier League’s Financial Fair Play requirements and we look forward to a period of continued growth and progress on and off the pitch.”
Increase in turnover in 2012-13 was driven largely by improved on-pitch performance and a higher finish in the Barclays Premier League. Higher average league attendance and a semi-final place in the Capital One Cup also contributed.
Reduction in operating expenses was driven by rationalisation of the playing squad with amortisation of player’s registrations down £3.1million and all other expenses down by the same amount.
Exceptional charges increased by £2.4million to £8.3million and included the accelerated amortisation of certain players’ registrations and their employment costs. The accounts now more accurately reflect the value of the squad utilised by the manager.
As the squad was being rebuilt, there was no repeat of 2011-12’s record-breaking profit on disposal of player’s registrations (£0.3m loss in 2012-13 as opposed to £26.9m profit in 2011-12).
There was also no repeat of the one-off impact in 2011-12 of the waiver of accumulated interest of £20.3m by the owner on loans made to the Club. The group continues to benefit from this largesse to the tune of £6.1 million annually.
Although the operating loss fell by £9.5m, the combined effect of the above was to increase the loss after tax for the financial year by £34.1m to £51.8m. This was primarily due to non-recurrence of the high profit on player disposals in 2011-12 (£27.2 m) and waiver of interest (£20.3m).
“Villa will be safe to continue rebuilding the squad in the summer by adding some quality to what we already have,” Where the **** do you live, fantasy island? a) your assuming Villa stay up. and b) who the hell down at B6 actually knows quality in the first place? Lambert and co wouldn’t recognise quality if it bit them in the ****
Fantasy Island thought that was where all the doom merchants lived ! As for not staying hows about a little faith in the club yos claim to support ? Of course they will stay up just as they did last season As for policy have you not heard of speculating to grow ? And that means investing more in the team which is where the extra investment from Chinese TV & Villa lotto will help
I can’t believe some people think that once we hit zero on the losses, we will just start spending money again. If we were going to do that what would be the point of cutting back in the first place!
Get used to it, this is the policy for the foreseeable future.
I’m glad someone understands the financial statement! I don’t. All I see is a huge loss again on the bottom line and revenue from gate receipts will continue to decline with the football the team is currently playing.
I an certainly considering giving up after 60 years!
I can’t understand how the management team that oversaw the overspending/administration that has led us into this dire financial position are still in situ. Robin Russell has been the CFO since day 1 of Lerner … he clearly is not capable of forecasting/running scenarios or else these losses should not have come as a great surprise to RL. The sooner Lerner gets his head out of his backside and puts a proper management team into our club the better for all!
Can’t understand or don’t want to understand ? Now that is the real question as to whether there is a need for change or not as the case might be
A lot of fans were happy to see Villa finish in 6th place under O’Neil but @ what cost ?
How many fans would not have gambled on success & the financial gains that
success would have bought ?
MON had autonamous control of how the team was managed , and yes that was a mistake , & the the club has paid the price .both on & off the pitch
But what of the future ? Villa does not have a mega billionaire owner like ManC, but they do have an astute former banker as owner who it would seem wants the club to rise like a phoenix from the flames of near financial disaster . But even ManC took a couple of seasons to rise to the top by bringing in high priced established players & Villa have gone the opposite route with a meagre budget & bringing in young Internationals yet to become stars , so of course it will take time to bring success. But the books are nearly balanced , and more importantly IF better players are to be added to the squad , the club is gaining investment income , something it has had little of in the past but something that clubs such as ManU have relied on for many years
So are the finances as badly run as some claim ? Or could it be that some do not want to accept that tight financial control is what is/was needed to ensure the club can compete in the future ?
if you believe the club have made all these cutbacks to then go ahead and splurge more money you must be mad. The spend-thrift ways of the last three years are here to stay. Get used to it
you know this for fact or just because you want people to beleive it is so ?
Complying with FFP rules makes sense , But if the club has no ambition Why is it drawing in more investment income which will allow it to spend more under those rules ?
Pity we will lose the Sky Premiership money due to horrendous mismanagement
mismanagement ? Where ever have you got that crazy notion from ? Just as last season Villa will be safe to continue rebuilding the squad in the summer by adding some quality to what we already have
given that there almost certainly will be even more money coming in during the next financial year from the Chinese TV deal there should be even less financial constraints on spending . How far those constraints are relaxed remains to be seen !