Aston Villa's points deduction risk remains despite passing PSR test

Aston Villa v Crystal Palace - Premier League
Aston Villa v Crystal Palace - Premier League / Clive Mason/GettyImages

Aston Villa might still face significant financial challenges that could lead to a points deduction next season, according to finance expert Stefan Borson.

While Champions League qualification and a new kit deal are expected to boost Villa's revenue by approximately £50 million, the increased revenue is likely to be offset by rising costs, particularly in player wages and amortisation expenses. Player wages are likely to increase due to Villa's Champions League qualification, while new signings will contribute to higher amortisation costs.

To comply with PSR regulations, Aston Villa completed several player sales before the 30 June accounting deadline, including Douglas Luiz, Tim Iroegbunam, and Omari Kellyman. These transactions were essential to meet financial rules and avoid immediate penalties. Villa needed to raise around £60 million through these sales to prevent a points deduction.

Despite the player sales, Aston Villa has been active in the transfer market, signing Lewis Dobbin, Ross Barkley, Ian Maatsen, Samuel Iling-Junior, and Enzo Barrenechea. These acquisitions, while strengthening the squad for Champions League competition, will add to the club's amortisation costs. Maatsen alone could add around £8 million to the amortisation line, with the rest of the new signings contributing similarly.

The Premier League has recently reminded all 20 top-flight clubs about the "good faith" regulations concerning transfers, following a series of deals completed just before the 30 June deadline. This reminder comes amid concerns that some clubs, including Aston Villa, Chelsea, Everton, Newcastle United, and Nottingham Forest, might face scrutiny if their transfer communications are found to be inappropriate.

Borson admitted that the deals are fine on paper, but warned that Premier League clubs could face potential issues if they have to disclose any documents. He drew parallels to a past incident involving Juventus, where the disclosure of incriminating documents led to significant penalties. If any of the clubs have been inappropriate in their communications, they could give themselves a problem.

Aston Villa's financial situation remains delicate despite the anticipated revenue boost from Champions League participation. The club must carefully manage its expenditures to avoid breaching PSR regulations and facing potential points deductions.