EXPLAINED: All you need to know about Villa's £120m FFP losses

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Claret & Blue - An Aston Villa Podcast

Claret & Blue - An Aston Villa Podcast

3 ай бұрын

Dave Powell, our business and finance expert here at Reach PLC, joins us on the Claret & Blue podcast this week to discuss FFP, or PSR as it's now more commonly known. After Villa posted losses for the 2022-23 season of £120 million, we take a look at what that actually means for the club.
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Listen to the podcast on your favourite podcast provider: podfollow.com/claret-blue-an-...
Follow us on Twitter: / claretbluepod
Dan Rolinson: / danrolinson
John Townley: / johntownley11

Пікірлер: 107
@jamespearce9973
@jamespearce9973 3 ай бұрын
The national sporting press have leapt on this as a way of destabilising us for the run in. Perfectly timed.
@nathanmoore7120
@nathanmoore7120 3 ай бұрын
That’s a defeatist take on it. I see this as a way of focusing the mind and uniting us so the fans and the owners can work together in fixing the situation. That means the fans will need to understand why the club sells players enabling us to comply with FFP. We (as fans) might need be more understanding flexible with our options regarding the stadium. We might need to consider what we do with our stadium or even move from Villa Park. Look at how Spurs have increased revenue since their move from Whit Heart Lane. If the fans can be more open minded and the owners can still develop the squad and keep Villa pushing the top 4 year in, year out. We can get out of the situation we are in and become more competitive financially if we work together. I am concerned the fans want the best of both worlds and that could jeopardise our progression.
@samuelloification2749
@samuelloification2749 3 ай бұрын
Remember when everyone slagged off Gregg Evans for saying FFP was a concern
@darrenwoolley8433
@darrenwoolley8433 3 ай бұрын
Thanks for posting great to listen to someone who actually knows what he's talking about the finances and how it effects us. UTV
@marklawrence3642
@marklawrence3642 3 ай бұрын
affects*
@darrenwoolley8433
@darrenwoolley8433 3 ай бұрын
@@marklawrence3642 I'm glad you noticed the mistake it's been a busy day. UTV
@rodvik
@rodvik 3 ай бұрын
Great guest and interview , thank you!
@user-nd1ck7eb2v
@user-nd1ck7eb2v 3 ай бұрын
The guy doing the account section is the only person talking about football finance who has not sent me to sleep. Explained it in a layman’s terms which I need. Very good. My thoughts let Emery do the football and the owners do the books. Cheers Rolo. Great podcast. UTV
@stevewebster5729
@stevewebster5729 3 ай бұрын
Thank god for the finance guy pointing out that the overall loss is subject to many deductions before the FFP figure is reached, and hence we wont have to sell players, indeed with successive European campaigns we'll probably be buying. Shame not everyone seemed to hear that...
@supervillan326
@supervillan326 3 ай бұрын
Great informative podcast gents. Great job! 👏🙂
@cestmoi7829
@cestmoi7829 3 ай бұрын
Great insight & discussion. Sailing close to the wind whilst constantly trimming the sails is what is necessary to make progress; especially as competitors are doing likewise 😮
@jamesthomas6551
@jamesthomas6551 3 ай бұрын
Really good to talk on this, settling everything down. Still need to keep an eye on spending
@paulcraig3260
@paulcraig3260 3 ай бұрын
That has put a lot of fans minds at ease knowing the figures are not as disastrous as they ,ooked at first.
@brianmorais1
@brianmorais1 3 ай бұрын
I enjoyed this. Good stuff.💯
@reevo129
@reevo129 3 ай бұрын
Ground sharing 😂I remember when we had to use West Brom’s ground for a intertoto cup game
@marineboy1964
@marineboy1964 3 ай бұрын
Great stuff, Really interesting conversation and explaining alot of stuff us plebs dont understand ,Sunday's game against spurs is huge in villa's history going forward and a win would go along way to CL qualification and all the riches it brings not in just money but players aswell
@ClaretBluePod
@ClaretBluePod 3 ай бұрын
I’m a pleb too!
@markhunt3666
@markhunt3666 3 ай бұрын
Hot topic totally covered. Well done all involved. Welsh Villian
@stephenbell8349
@stephenbell8349 3 ай бұрын
Don't need to sell "big players". Worst case- we have 3 defenders that are 30, and on big money, could sell one or 2- probably get 12-15 for each. Loanees could fetch 20 mil. Fringe players could get 10 mil. Duran is allegedly unhappy- he could go for 20 mil. Raise 70 to 80 mil. No sweat.
@therealpaule
@therealpaule 3 ай бұрын
Brilliant pod, very insightful. Having a proper expert give an impartial view is fantastic. Is Dave available at accounts publishing time every year? As ever, pay little attention to the people/fans on social media that seem to want to see doom and damnation in everything.
@ClaretBluePod
@ClaretBluePod 3 ай бұрын
Dave is available whenever we need to chat finances!
@Bobby_sprinkles
@Bobby_sprinkles 3 ай бұрын
I don't have any concerns. The owners of the club wouldn't be where they are if they weren't able to deal with things like this. Brilliant show and guest, very informative.
@alanhealey7885
@alanhealey7885 3 ай бұрын
Great news
@jjfreer
@jjfreer 3 ай бұрын
if breaking the rules costs us 6 points next season, over selling luiz, watkins, ramsey etc. one of those players probably contributes more than 2 wins over the course of the season, so would be better to not sell and jsut take a 6 point penalty.
@edpoole1942
@edpoole1942 3 ай бұрын
If almost every club in the premier league is losing 105 million every three years that is not sustainable. Eventually they world will run out of people who want to throw away tens of millions a year.
@Lioness_UTV
@Lioness_UTV 3 ай бұрын
In my opinion, what this means is that we need to run the club in a smart and efficient way. We have made some mistakes and we will learn from this. This is as part much of the journey back to the top as it is on the field.
@andrewturpin5948
@andrewturpin5948 3 ай бұрын
The difficulty is, so many clubs are flirting with FFP, no one will be able to pay big money for players, so why would the few clubs without those concerns pay over the odds… who will pay £100m for a player in that market place. I suspect there will be some “tweaking of the rules” coming to stop the gravy train from collapsing.
@geordievillan
@geordievillan 3 ай бұрын
you aren't wrong, exactly, but think of it this way:- the majority of the global population live in poverty, and few can afford a car worth more than ... let's say £60k. So why would anyone spend £1.2m on a car? Especially one you can rarely even road drive? The majority won't, but for the few who have more money than they can spend, and for those in the bracket of spending ridicuoous money to *make* money - arsenal, barca, etc - the rules and metality are just different.
@andrewturpin5948
@andrewturpin5948 3 ай бұрын
@@geordievillan an interesting take and I don’t necessarily disagree. But the suggestion is Arsenal and Chelsea are sailing close to FFP and Barcelona’s financial woes are well documented…. I can’t see Liverpool paying £100m for Dougie, and whilst Spurs are said to be financially capable, Levy won’t spend that kind of money when he thinks we may need to sell to comply. My point really is that even the big spenders aren’t immune but those that “can” will look to take advantage of the FFP concerns of the minnows and the big money transfers simply won’t be as big. Interesting debate this one but I suspect a rule change is inevitable.
@geordievillan
@geordievillan 3 ай бұрын
@@andrewturpin5948 Yeah, I hope so. Barca's finances should have seen them banned from football years ago, as with those of juve, read madrid and a number of others. I guess whatever the outcome these next few seasons, one thing will remain contant - uprating of ticket prices and greater travel expense. Still, we all follow the Villa, wherever that takes us :)
@edpoole1942
@edpoole1942 3 ай бұрын
These rules also mean that not many teams are able to buy our players either. IF Man city are up against spending limits then they can't come in for one of our players without raising the money through sales in a market where no one is spending much. I'm not sure how it fits these figures but when we buy the fee is spread over the course of the contract so anyone signed on a four year contract the year we came up or a three year contract the following year will be showing in these accounts but not next year.
@davidwebster5946
@davidwebster5946 3 ай бұрын
The biggest issue is the wages to turnover ratio which os around 90%...that is insanely high. If means Villa keep having to bring in more revenue every year to satisfy the existing wage bill. Without new commercial income that means selling players
@nickcann
@nickcann 3 ай бұрын
It’s all well and good quoting the “Big 6” clubs each and every time, however, all clubs were able to vote on these rules and it was put in for whatever reasons they thought was fair. I’d say the FFP/PSR where the figure of £105M losses over 3 years should be an indexed linked thing because it’s unrealistic to keep that in place the way the football market has moved over the last 10 years. Look at average Premier League player wages compared to when these rules were brought in, the figure is a totally unrealistic. They seem to have rumoured that there are changes coming in at the end of the season and you can only hope the figure is made to something more realistic for the market everyone is operating in nowadays.
@marklawrence3642
@marklawrence3642 3 ай бұрын
sounds like a 15mill sell in the summer then. We get Europa money + champions league spot will generate money surely?
@cureit9161
@cureit9161 3 ай бұрын
Is it going to be a case that again, no one spends any money in the summer window?
@geordievillan
@geordievillan 3 ай бұрын
I hope so... but probably not. Clubs will be a bit more nervous this season than any other- elsea are unlikely to be as poor next year onwards, man utd have recieved significant investment and will be having a clear out (probably inc Ten Haag) and Newcastle will know that they are not prepared to play with the big boys like us. Covid losses will be fffthe books, ad normal service resumed, with UEFA doing all it can toothrow ever more money at those already at the top via the new competition formats. Teams that miss out on the champs league this season may even take more of a gamble in the summer than otherwise would be the case, knowing that the new European formats will lead to the teams involved having a greater spending advatage the longer they are n it. The season after next though, that might well see a lot of teams not spending.
@justoli9039
@justoli9039 3 ай бұрын
The Wembley of the North sounds like game of thrones 😂 Definitely need to re name villa Park this, in tribute to the greatest series of all time 😎
@geordievillan
@geordievillan 3 ай бұрын
Birmingham Babylon - in honour of the best series ever made? ... we could build a hotel and call it that, anyway. Villa Park must always be Villa Park.
@holteenderavfc375
@holteenderavfc375 3 ай бұрын
If it ever came to it, would it be preferable to sell stars or sell naming of the stadium rights?
@geordievillan
@geordievillan 3 ай бұрын
Playes. They can be replaced - hopefully on lower wages.
@holteenderavfc375
@holteenderavfc375 3 ай бұрын
@@geordievillan Of course. There is an affection developed though. And you hate/ love to see an ex villa player doing well with another club.
@billybooger1
@billybooger1 3 ай бұрын
How much do you get for finishing 4th? How is this accounted for?
@ClaretBluePod
@ClaretBluePod 3 ай бұрын
There’s prize money allocated per league position, I’ll try and find out what it is
@geordievillan
@geordievillan 3 ай бұрын
last season we won £30.8m for finishing 7th, Newcastle got £37.4m for finishing 4th. Throw in inflation, and you're hoping for us to make +£40m from finishing 4th or 5th, i suppose. (...IIRC, ofc xd )
@Reubz18
@Reubz18 3 ай бұрын
Great pod guys, hopefully calm a few heads now ;) be interesting to know if we get more prize money for 2 additional Champions League games... Touch wood. #utv
@50pence59
@50pence59 3 ай бұрын
Points deduction happens anyway, allowing Spurs and Man. U into the Champions League. That keeps the protection of the product going.
@davidrickard9869
@davidrickard9869 3 ай бұрын
I love the Villa - the records say we are Birminghams best club buy a mile - city are crap and we are club
@milliefrankieshaw2009
@milliefrankieshaw2009 3 ай бұрын
He’s just said what I’ve been saying for ages . Villa will move from B6 . I’d read an article a year or 2 ago (none villa related) saying there was no real major sporting venue in and around the midlands but especially in the second city . It happened to coincide with villa exploring the possibility of rebuilding the north . Since putting 2+2 together there’s been rumblings about us moving but what convinced me the most was the cancellation of the north being rebuilt. For years now our owners have been forward thinkers so cancelling the project for the reasons given made zero sense. 5 years tops I think and we will be well on our way to moving 😞
@supervillan326
@supervillan326 3 ай бұрын
You may be right. The logical move, (from the outside looking in and without the claret specs on), is to build a new stadium, whilst staying in a full capacity VP to keep the money coming in, then move when the new bigger stadium is ready. That would allow Villa to rent the new stadium out for non-football events, (ala Spurs / Wembley), to provide new revenue streams, as well as offset the cost of the new stadium build by selling VP. 😕
@milliefrankieshaw2009
@milliefrankieshaw2009 3 ай бұрын
@@supervillan326 painful one to think or talk about so it maybe a reason for signs being missed but I think there’s plenty there … I mean wez knows his way around a rebuild . When you think about the money we’ll have to spend just on surrounding areas before a brick is even laid…. For an additional x-thousand fans … where do we go after that ? To be a top 4/5 side I think a 55k arena is minimum . You only have to take a look around Europe… even in Italy where there’s no money, teams are rebuilding. I think we are at that point now in that search for greatness… what are we willing to give up . Gregory reached the point with Doug and Doug was a little reluctant to take the next step
@supervillan326
@supervillan326 3 ай бұрын
@@milliefrankieshaw2009 agreed - plus how do the owners balance the PSR books with the capacity reduced by 25% for a season or more whilst the rebuild happens. Then how long with the increased capacity to get back to break even, (ie, making back the revenues we lost during the reduced capacity the rebuild). For me, Villa match day income wouldn’t increase over what it is today for at least 3yrs. Also, when would you do the work? Surely we can’t reduce capacity if we qualify for the CL? But the longer we leave it, have harder the PSR balancing becomes because one of the key ways to increase revenue is through increased match day income. Glad it’s not me who has to traverse this minefield!!
@milliefrankieshaw2009
@milliefrankieshaw2009 3 ай бұрын
@@supervillan326 we’d possibly break even if you consider the 2ish million per CL game but it’s not even going to touching the side in the long run especially if our aim is as high as we are lead to believe.
@debbiehingley3138
@debbiehingley3138 3 ай бұрын
It’s also the transport issues and gridlock every home game. Unless that’s sorted it will get worse.
@Scotty_AV
@Scotty_AV 3 ай бұрын
Dare I say once the COVID years fall outside of the 3 year period it might be more difficult. Champions league is a must to bring in more income to cover this
@davidbilcliff8808
@davidbilcliff8808 3 ай бұрын
What is PSR?
@ClaretBluePod
@ClaretBluePod 3 ай бұрын
Profit and Sustainability Rules (might be Regulations)
@Researcher83
@Researcher83 3 ай бұрын
Just proves the media absolutely hate us, bringing this up now to disrupt our season & solidify their so called top 6 club bias with the teams they want up there. Picture this, we make champions league, everyone is happy then we get a points deduction to drop us out of the CL & give it to Man Utd. Can you smell it in the air 🤔
@REALLYRANDOMREVIEW5
@REALLYRANDOMREVIEW5 3 ай бұрын
and here some Villa Fans moaning ''their being priced out'' Personally i think Gerrard has been a big part of our losses to buy him in pay him off etc then again we paid a few release clauses PLus we rebuilt the acadamy and Womens Team and the latter allow us to write off losses in them leagues so i AM NOT worried at All I would be concerned if were still in this boat next finacial year This Year anyone paying attention should have expected this UTV
@geordievillan
@geordievillan 3 ай бұрын
add in the £150k per week contracts he threw around like confetti :(
@mattwarner8273
@mattwarner8273 3 ай бұрын
Emery release clause was 5mill alone
@isaywhatithink1223
@isaywhatithink1223 3 ай бұрын
can't villa just not make any big signings this coming summer & then surely will make revenue on prize money
@InYourHeadChangedMan
@InYourHeadChangedMan 3 ай бұрын
If we qualify for Champions League don't we get 100 million? and 5 to 10 million for making the final or winning the Conference League , That would pay for the 120 million losses plus selling a couple of players that are heading out the door in the Summer anyway would cover the rest?
@ClaretBluePod
@ClaretBluePod 3 ай бұрын
No it’s not 100 million.
@xristosfarrow5425
@xristosfarrow5425 3 ай бұрын
Its definitily not 100mil. The numbers of the 120mil loss are for the previous season. The financial year ends at May-June each year. If we can qualify for CHL the money will show in the books the following year not now. That is why this Summer will be crucial. From what i understand we dont have much room to invest in getting high fees incomings unless we sell. Maybe we have room for a couple smart buys of young players. I am ok with that if it means we will not sell an important player. But if we do we have faith in Emery and the recruitment team.
@dennisgoatimer1079
@dennisgoatimer1079 3 ай бұрын
No only the Conference League money will count the Champions League money will affect the next financial year but whatever position we finish will affect this year but we can also get some good buys either wait until this financial year ends at the end of June to buy and only sell before if we really need to then push it for the next year.
@joeservice1968
@joeservice1968 3 ай бұрын
Disagree with John that we still might sell someone. Tbh I don't think there's any clubs that could afford to buy one of our top Assets.
@ClaretBluePod
@ClaretBluePod 3 ай бұрын
Well yeah that is also part of the ‘problem’ I suppose - if we NEED to sell, who is around to buy our players
@joeservice1968
@joeservice1968 3 ай бұрын
@@ClaretBluePod Don't see Liverpool or Tottenham spending £100M on Luiz. There's no value in the Premier league at all.
@jagmanx
@jagmanx 3 ай бұрын
The assessment of viability of any business is by looking at the Balance Sheet not P&L. So PSR has little to do with sustainability. Not saying it’s a bad thing … tries to level the playing field, however does nothing to balance back against the Chelseas of this world who have a decade + over the likes of Villa
@patrickgreen6242
@patrickgreen6242 3 ай бұрын
So are we in trouble yes or no?
@ClaretBluePod
@ClaretBluePod 3 ай бұрын
No
@davidcheater8709
@davidcheater8709 3 ай бұрын
I fine with selling JJ
@creativitycell
@creativitycell 3 ай бұрын
They'll make thar back in next seasons Champs League n extra merch/sponsorship as result. This is a non story.😂
@ClaretBluePod
@ClaretBluePod 3 ай бұрын
It’s definitely not a non story, you don’t lose £120million and that not be a problem.
@richardlawes2697
@richardlawes2697 3 ай бұрын
I don't understand why we sold JPB for 5 mill. Only to spend 15 on Morgan Rogers. Yeah the 5 is 100% now and the 15 spread out. But it's basically like for like. JPB is better anyway.
@marksturch3162
@marksturch3162 3 ай бұрын
JPB wanted to leave to get game time even though Unai wanted him to stay.
@karang100
@karang100 3 ай бұрын
See it's like a Cole palmer situation. He needed guaranteed playtime and pep wanted him to stay but couldn't guarantee continuous playtime. It just like that jaden wanted to leave because he wanted continuous playtime and unai like any other good coach couldn't guaranteed it.
@TheCurtisdavies
@TheCurtisdavies 3 ай бұрын
how do you know he’s better? strange statement
@richardlawes2697
@richardlawes2697 3 ай бұрын
@@TheCurtisdavies Not really. I've seen them both 🤷🏻‍♂️
@rachelinsull-lewis4545
@rachelinsull-lewis4545 3 ай бұрын
Firstly the game time we werent able to give him and he wanted to leave. Financially speaking it makes alot of sense. Very different players so very difficult to ascertain who is better
@scifimonkey3
@scifimonkey3 3 ай бұрын
Good luck when other teams offer you 50% of your players value as they know that you have to sell. Welcome to the same situation that Forest faced. You will have to sell the players by the middle of the transfer window or break PSR rules
@dennisgoatimer1079
@dennisgoatimer1079 3 ай бұрын
Well we don't have to sell that's the thing we've got plenty of unneeded assets we can sell we wouldn't of spent what we did if we needed to sell a major asset
@harryjohnson8371
@harryjohnson8371 3 ай бұрын
It's going to be a bad summer
@dennisgoatimer1079
@dennisgoatimer1079 3 ай бұрын
It isn't
@user-jp8oz3db4t
@user-jp8oz3db4t 3 ай бұрын
Won’t we get like 37mil for coming 4th plus champions league money say 40-50 mil
@Reubz18
@Reubz18 3 ай бұрын
I think it's we'd get about £15m more than last year for coming 4th/5th - and then £35m+ for Champions League
@aaronorme1169
@aaronorme1169 3 ай бұрын
I thought it was 2 mil a place?
@phillydavison
@phillydavison 3 ай бұрын
We are not there yet.
@simeonlp
@simeonlp 3 ай бұрын
Cl money won't help us in this financial period, it'll help for the next period, if we qualify 🤞🏼
@user-jp8oz3db4t
@user-jp8oz3db4t 3 ай бұрын
@@simeonlp so will it not help on buy and having to sell cuz we have extended our year to 31st of June
@brettriverboat9920
@brettriverboat9920 3 ай бұрын
If we can get 40million for Jacob Ramsey sell him, the guys been absolutely pointless this season
@michaelgriffin2716
@michaelgriffin2716 3 ай бұрын
are you serious mate hes been injured ffs sell our own grown fututer england lads im so glad you aint in contorl
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