Villa back on financial track thanks to HS2
ASTON VILLA could exploit a development loophole involving controversial trainline HS2 – or the sale of Jack Grealish – to meet Financial Fair Play.
The Midlands club will fall foul of the regulations if they fail to achieve promotion, unless they take action by the end of the season to reduce their liabilities.
Villa were walking a tightrope last season over £39million losses, which are allowed over a threeyear period.
But, since the takeover by billionaires Wes Edens and Nassef Sawaris, their outgoings have rocketed.
And a reduction in the parachute money from the Premier League, following their relegation three seasons ago, has only highlighted the problem.
Players such as Yannick Bolasie have been signed on loan from Everton and Villa are understood to be meeting all of his £70,000-a-week wages.
Tammy Abraham has also arrived on a similar, temporary deal l from Chelsea on a £55,000a-week deal and only last week the club spent £4.5m on Croatia international keeper Lovre Kalinic from Gent. t
Villa’s wage bill dropped because John Terry retired and Robert Snodgrass returned to parent club West Ham.
Sidelines
But they are sill running up heavy losses, paying Scott Hogan, Micah Richards and Ross Mccormack over £1.5m a year to sit on the sidelines.
But the club’s decisionmakers are not sweating unduly over the problem because they have a couple of potential get-outs.
The first involves
England Under-21 international Grealish (above), who was the subject of intense interest from Spurs last term.
The playmaker agreed a new £50,000-a-week contract only a few months ago, with a £30m buy-out clause.
If Villa fail to achieve promotion this season, one way of reducing their losses and comply with the rules will be to offload the 23-year-old – although it remains to be seen if anyone will trigger the move.
All that money can been used to offset any liability as Grealish was a trainee and the whole amount of his transfer fee can be written off as a development cost.
More interesting, however, is the issue with HS2 as it cuts through part of Villa’s Bodymoor Heath training base.
The club has been in negotiations with the government over compensation for the disruption, although it will not cause Villa to re-site their training centre.
They have been reshaping their base as the line slices through an academy pitch and the government has to leave them with a facility that is no worse than the one they had before.
Relocation
HS2 confirmed that work is under way this week, saying: “We welcome the fact Aston Villa is making progress with the relocation works at their training ground. This follows an agreement reached w with the club earlie earlier this year.” H However, it h has presented Villa with an opportunity to sell-off the tr training gro ground as a deve development to one of t the property companies owned by billionaires Edens and Sawaris, should they wish to take it.
That will also count as income and can be offset against any losses.
Villa could look to have Bodymoor Heath surveyed as new development work, as it would add a premium to its current value.
However, given that the sale value of the club was around £30m last summer – due to the high level of debt incurred by previous owner Tony Xia – the figure will be monitored carefully.
If it is deemed to be artificially inflated, it could attract the attention of the Football League, who will be under pressure to ensure that their financial rules are not contravened.
Cross-city rivals Birmingham are still under the threat of a points deduction after a serious breach of the rules, and Sheffield Wednesday are also struggling after owner Dejphon Chansiri told fans the Owls still have “big problems” with FFP.