Beleaguered owner in talks to sell Villa
VILLA’S precarious future could soon be resolved as Tony Xia discusses takeover bids with two interested parties.
The Birmingham Post understands Xia rejected a 51 per cent offer from a European bidder on Tuesday.
A financial package, which would have met his requirements of up to £40 million of investment, was put forward – but he knocked it back.
Negotiations with two other serious bidders are now planned as the Chinese owner tries to find a way out of the club’s mess.
Both parties are weighing up offers for control or outright purchase, while in the background remains an American group, which has registered an interest but is yet to make a formal bid.
It is understood representatives took a closer look at Villa Park and the surrounding area earlier this week but are yet to make a move.
Interest in the club has started to pick up and sources have revealed a recent filing on Companies House, related to the club’s debt, suggests a new buyer or major investor is not far away.
Villa have been in crisis since the play-off final defeat to Fulham with skipper John Terry leaving and star player Jack Grealish set to follow.
CEO Keith Wyness had a huge bustup with Xia and is now threatening to sue for constructive dismissal following his exit.
A missed tax bill last month left the club facing a winding-up order before the owner managed to source various loans to help pay the existing debt.
But as the Post reported earlier this month, Xia has been looking for outside investment. We also revealed he had borrowed against the club’s final parachute payment.
Initially, Xia wanted to find a minority investor but now recognises that option is unlikely, which is why he is listening to offers of 51 per cent and above.
Boss Steve Bruce and technical director Steve Round have been waiting for answers from the owner as they prepare to welcome the players back for pre-season training next week.
Some transfer targets have been identified but there’s no way to push them through from the top.
The fact Xia is entertaining bids and willing to discuss takeover offers shows he is ready to step aside after two seasons.
The culture of Chinese business means Tony Xia is under pressure not to sell Villa for less than the £85 million he paid for the club, according to without authorisation an expert finance.
Simon Chadwick, professor of Sports Enterprise at Salford University, says the likes of Atletico Madrid, Inter Milan and Slavia Prague have seen income dry up after Far Eastern authorities warned investors to stop taking so much money out of the country.
He said the Villa owner would be feeling the pressure to “save face” in his home country.
He said business people in China can feel deep embarrassment from selling investments for less than they were bought for.
“There is the issue of saving face in Chinese society. That is huge,’’ said Prof Chadwick.
“For Tony Xia to exit Aston Villa would be losing face for him at home. He would not want to leave without making a profit.”
He added conditions in China had not helped Xia’s plans to invest in Villa.
“Last July, the Chinese authorities felt they were suffering from lots of people moving money off shore so the Government clamped down on it,’’ he said. in Far Eastern football