It has been reported that Aston Villa could have future problems with PSR as the Premier League is expected to move closer to UEFA’s Financial Fair Play legislation.
Football finance expert Adam Williams discussed this potential problem for Villa, explaining that Villa are currently losing £140m a year.
It remains to be seen exactly what this means for Villa if the rules change, but Williams has given some idea of what the club can expect in their current financial situation.
“This has been the best-kept secret in football finance for some time, but the Premier League is moving from the PSR to a system closer to UEFA’s squad cost ratio rules. Under the PSR, no losses can be allowed in excess of £105 million over three years, and allowable expenses such as academies and infrastructure investments are excluded from the calculation,” he said.
“The last few accounts show that Villa is losing around £140m each year at an operating level. Even taking into account European income and PSR exemption costs, there is a significant shortfall that must be made up to comply with the PSR.”
Could this mean a big sale for Aston Villa?
Most Villa fans will no doubt be worried about what this means for the club’s ability to continue investing in Unai Emery’s side in the upcoming transfer window.
AVFC have already struggled to retain all of their best players recently, with the club having to sell Douglas Ruiz to Juventus last year, John Duran to Al Nasr in January, and Jacob Ramsey to Newcastle this summer.
Emery has done a great job with the team so far, but these are also pretty big setbacks, and there could be more setbacks in the near future.
This will be extremely frustrating for Villa fans, who have seen their club fairly successful against the established big six but thus far not rewarded much.