Aston Villa 'reliant' on billionaire owners as near £70m loss detailed in accounts
Aston Villa have revealed they remain reliant on cash injections from their billionaire owners after announcing annual losses of £68.9 million.
The pre-tax loss is detailed in the club's accounts to the year ending May 2019, a period which saw Villa promoted to the Premier League after being taken over by co-owners Nassef Sawiris and Wes Edens.
It is up by £32.8m from the previous year.
A statement in the directors' report of the accounts says Villa "remains reliant on shareholder funding", adding that NSWE "intends to support the group and company for at least 12 months from the approval of these financial statements".
According to the accounts, NSWE, who have bankrolled the club since taking over in the weeks following the 2018 play-off final defeat to Fulham, ploughed £105.7m into the club in the year to May 2019.
The accounts also show that Villa received a £36.3m chunk from the £58.7m sale of Villa Park during the season, as well as £14.5m in compensation from HS2 for the club's Bodymoor Heath training ground.
Meanwhile, £30m was paid to former owner Randy Lerner, a payout which had originally been owed by the American’s successor Tony Xia.
Wages were up to £95m, a £22m rise from the previous season.
The accounts show that gate receipts at Villa Park rose by almost £1m to £12.7m, as the club's average attendance increased to more than 35,000.
Sponsorship was also up, rising by around £2.6m to £7.3m. Turnover for the year was £54.3m, down by £14.3m on the previous year, with the drop mainly attributed to the reduction in parachute payments in Villa's third consecutive season outside the top flight.
This also contributed to a fall in broadcasting revenues from £40.3m to £22.3m.
By the end of the financial year the club had £21.9m in the bank, up from £3.4m in 2018.
Villa’s chief executive Christian Purslow has confirmed that the club remained compliant with the EFL’s financial fair play rules over the three year period in the Championship, thanks mainly to the sale of Villa Park.
A club statement said Villa had also matched the criteria laid out by the Premier League. It said: "After promotion, the Premier League reviewed and confirmed compliance in accordance with their own policies and procedures."
The accounts note that a former employee brought a claim against the club for "automatic unfair dismissal".
It is believed to refer to former chief executive Keith Wyness, who Villa reached an undisclosed out of court settlement with in November 2019.
The balance sheet also reveals that Villa have had a net outlay £131.9m on transfers since the end of May last year.
The figure includes more than £50m on deals for Wesley, Tyrone Mings and Douglas Luiz.
