Aston Villa’s UEFA Rule Breach
As we gear up for a new season, MOMS will be covering a few things that have happened over the past couple of months that impact supporters, to make sure you’re up to speed.
As revealed earlier on the My Old Man Said podcast, from the last Fan Advisory Board meeting in May, MOMS knew Aston Villa were going to be hit by a UEFA fine. The punishment was finally announced at the start of last month, with UEFA’s Club Financial Control Body (CFCB) both fining the club and also detailing a three-year settlement deal mapping out the road to compliance. This occurrence has very much set up a summer transfer window, where Unai Emery and Monchi have had to approach it like surgeons, as there can be no speculative spending under UEFA’ eagle eye. So, if Evann Guessand is incoming, then it’s pretty certain they’ll be a significant current player outbound soon.
What Aston Villa Did Wrong?
UEFA’s new financial sustainability rules, introduced to phase out the previous Financial Fair Play system, include a “squad cost ratio” cap. This limits how much of a club’s revenue can be spent on wages, transfers, and agent fees. Ultimately, the cap will be 70%, but since there has a been a soft landing period of 90% and 80%, over the past couple of seasons.
Villa breached this ratio, with their squad costs exceeding 80% of their income last season. When you consider the January loan signings of Marcus Rashford and Marco Asensio, two of the most high-profile and high-wage players in the club’s history, Villa’s owners apparently greenlit the two loans to essentially bet on the club going on a deep European run and clinching Champions League qualification to help cover their rising wage bill.
What Was the Punishment?
Villa were fined a total of €11 million (£9.5 million) upfront, with an additional €15 million (£12.9 million) fine suspended over the next three years.
The €11 million fine itself is split into two parts:
- €6 million for breaching the maximum squad cost ratio.
- €5 million for breaching the “football earnings” rule, which includes attempts to bolster financial reports using transactions like inflated asset sales, player swaps, or related-party transfers.
The suspended €15 million will only be activated if Villa fail to comply with the UEFA settlement terms between 2024 and 2027.
What Does the UEFA Settlement Mean?
Villa must now follow a strict three-year financial roadmap laid out by UEFA. This includes:
- Reducing their squad cost ratio: Next season, Villa must bring it below 80% and work towards 70% over time.
- Achieving a positive transfer balance: Villa will not be allowed to register new players for UEFA competitions in the 2025/26 season unless they generate more income from sales than they spend.
- No using inflated or related-party asset sales: These tactics, including the recent sale of Aston Villa Women (similar to Chelsea’s sale of their women’s and hotel assets), are not counted towards compliance.
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Context: UEFA vs PSR
Villa are also navigating the Premier League’s Profit and Sustainability Rules (PSR), which have slightly different accounting standards. The decision to sell their Women’s team, effectively to themselves, was a move to help manage their PSR position, but that transaction has no impact on UEFA’s financial analysis.
What It Means for This Transfer Window
Villa’s upcoming summer transfer window must now be actioned with precision. To register new players for Europe, Villa must first sell to balance the books. High earners may be moved on. New signings are likely to be more financially cautious unless offset by sales.
The all-in gamble to hit the Champions League jackpot didn’t quite pay off this time, and now the cost is clear. The fine may not derail Villa’s progress, but it does mean that more prudent financial management and smart long-term planning are now critical.
In short: the margin for error has just shrunk dramatically.
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this article is poorly researched. Uefa squad cost is calculated for 1st of Jan to 31st of December. So Rashfod and Asensio loans will be on next years SCR calculations. Also the champions league money we received for making the quarter finals, plus Carlos and Duran’s sales should solve the SCR issue for now, particularly if we follow the agreement to have a net positive transfer business in this window. We have wiggle room in regards to transfer fees, but need to reduce wages.
It’s not really referencing a particular period, but the gamble of the extra wage cost of Rashford & Asensio (even when you know you have a wages issue) to hopefully bring more CL football to help counter the wage bill of forthcoming seasons to tackle the overriding wage issue.