After a historic return to the Champions League and a Premier League season ending on a bittersweet note, Aston Villa faces a new kind of opposition: the Premier League’s financial rulebook. While Unai Emery has transformed the team’s trajectory on the pitch, the club must now navigate the complex, increasingly confusing, and often unforgiving terrain of the Premier League’s Profit and Sustainability Rules (PSR). Ambition is expensive.
Having earned a finance degree and worked professionally in corporate America, I’ve spent years analyzing financial data, managing risk, and interpreting complex accounting principles—often unsuccessfully (which might explain why I’m now writing about Villa in my spare time).
Still, these experiences give me a “unique” insight into the strategic tightrope clubs like Villa must walk. PSR isn’t just a rule; it’s a real-world constraint that mirrors the balance sheets and compliance pressures found in other industries. Buckle up. This will be an exciting one.
The Premier League’s PSR, formerly known as Financial Fair Play, is designed to promote financial health across English football. Think of it as a way to level the playing field to shrink the gap between big and small clubs. In theory, it’s a noble effort. In practice? That’s debatable.
Under PSR, clubs can lose a maximum of £105 million over a rolling three-year period. These financial years typically begin on July 1 and end on June 30. Some costs are exempt, like investments in infrastructure (e.g., stadium expansions), women’s football, and community programs. However, anything related to the first team, including player wages and transfer fees, falls squarely under this rulebook.
The PSR system places a premium on internal development and player trading. For example, when a club sells a homegrown player (one developed in the English system), this player, if sold, would count as pure profit. In contrast, when a club buys a player, the transfer fee is not paid up front. Rather, it’s spread out over the length of a player’s contract via amortization. Amortization is a fun accounting way of saying we are going to spread the cost of something over its lifetime.
This happens in the real world all the time. There are many benefits of doing this, but I’ll let you take an accounting class for that in-depth explanation. Or talk to your accounting friends—they probably need the social interaction. Anyway, think of it this way: Aston Villa buys a player for £50 million on a five-year deal. The club would amortize the cost of the player for £10 million every year over the next five years.
This accounting quirk is now at the epicenter of Aston Villa’s financial puzzle.
Where Aston Villa stands
Villa has spent boldly since returning to the Premier League. Players like Morgan Rogers, Pau Torres, and Youri Tielemans reflect a club determined to challenge the elite. But Villa’s current situation is shaped by two key financial stressors: a high wage bill and significant losses.
In March 2025, Villa posted a significant loss of £85.4 million after taxes, down by £34.2 million from the year before. It is also worth noting that revenue has increased by 27% year over year. Even with the increase in revenues, it was not enough to avoid having PSR problems at the end of the three years, which are ending on June 30, 2025.
Strategic responses and who potentially goes
I don’t think many of the Villa faithful can complain about Aston Villa’s hierarchy. Since the appointment of Monchi, Villa’s recruitment has been top-notch. It’s been refreshing to see the synergy between Monchi’s and Emery’s visions. Monchi’s more data-driven and sustainable model has worked well for Villa. However, with the lack of revenue from the Champions League, Villa’s financial situation seems to be a bit more stressed than previously hoped.
Everyone at Aston Villa knows there will be outgoings this summer, and the rumor mill has not stopped for anyone. The biggest one is Emiliano Martínez. It’s looking increasingly likely as I write this that he will be leaving Villa before June 30. This move probably makes the most sense, based on the wage and potential transfer fee.
As many have reported, this would effectively kill two birds with one stone. You could help save the increasingly high wage bill and recoup some revenue as well. Ollie Watkins seemed to be on his way out as well, but as June continues to move forward, it appears that Villa’s number 9 is staying. Other rumors have suggested Jacob Ramsey and Jadan Philogene are valuable assets to Villa, not only by their talent on the pitch but to the bottom line as well. These players are academy graduates, so if Villa sells them, they are 100% profit.
The uncomfortable truth for fans is that PSR may force tough decisions. If Villa must sell to buy, academy stars or fringe contributors with high market value may be the first out the door. Rumors have already linked Jacob Ramsey with a big-money move, and similar reports may follow.
Comparing Financial Strategies: Tottenham vs. Villa
To put Villa’s situation in perspective, look at Tottenham Hotspur—a club widely praised for financial discipline.
Now, before we grab pitchforks, Daniel Levy might not be beloved by Spurs fans for his sporting decisions, but as a businessman, he’s built one of the most stable clubs in Europe. Just… don’t focus on the trophies.
Spurs have built a reputation as one of the most financially stable clubs in the Premier League. Their model, under the long stewardship of Levy, has emphasized sustainable growth, controlled spending, and high-margin player sales.
Tottenham’s keys to success are simple: securing Champions League qualification and using their £1 billion stadium to generate additional revenues. Both highlight their financial wisdom. Spurs rarely overextend in the transfer market. Even when they’ve spent big on players like Tanguy Ndombele or Richarlison, they’ve done so from a position of strong underlying financial health.
The contrast is clear: Villa are attempting to fast-track their growth, while Spurs have built gradually over decades. Both models have merit, but Tottenham’s approach has provided more stability, particularly in navigating regulatory frameworks such as the PSR.
For Villa, the challenge is to emulate Tottenham’s financial discipline while maintaining the sporting ambition that has reignited the fan base.
Future outlook
Villa’s rise has been swift, but maintaining this level will require excellence in both sport and financial discipline. Competing in Europe also adds additional layers of financial complexity since UEFA’s rules are even stricter than the Premier League’s. The challenge now is to build a squad that is capable of competing and thriving at the top level. For Villa fans, we hope that Emery’s magic continues and that PSR doesn't become the barrier that stunts a golden era. Balancing the books has never felt so crucial.