BREAKING: ASTON VILLA UNDER INVESTIGATION

Aston Villa face shock investigation as Championship sides served warning over Financial Fair Play
By Aidan McCartney



Tuesday 2nd July 2019


It's the latest development around the issue of FFP


Championship sides may think twice about trying to get around Financial Fair Play punishment by selling their stadiums following a reported investigation in Aston Villa's finances.


The Midlands club, like a number of rivals before them, sold their stadium at the end last season in order to comply with the EFL's profit and sustainability rules.

In the short term, the plan worked with EFL signing off Villa's finances as being compliant with their FFP rules, but the Premier League appear to be less satisfied.

The authorities of the top flight received Villa's paperwork last weekend following their promotion in May, and they are now set to investigate the stadium sale, according to The Times.

The report claims the Premier League's investigation will focus on the value of Villa Park, which was sold for £56.7 million to NSWE Stadium Limited, a company controlled by the club's owners Nassef Sawiris and Wes Edens.

Earlier this season, Birmingham City were deducted nine points for their breach of FFP rules, which saw them lose almost £48.8 million across a three-year period between 2015 and 2018.

Clubs in the Premier League and Championship can only post a maximum loss of £39 million.


Interestingly, Villa were on course to exceed in their current three-year cycle, losing £50.6 million in the 2016/17 season alone.

However, they have offset losses with the sale of Villa Park, something Derby County also did this season with owner Mel Morris purchasing Pride Park.


The Rams ended up posting a profit as a result, despite being on course to incur significant losses.

As far as the EFL is concerned, it's a legal measure, one that was approved in the cases of both Aston Villa and Derby.

But should the Premier League take issue, it may just force any clubs considering the action in the future to think again, particularly if the Premier League is their objective.

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UEFA was suppose to crack down on such practices since man c used family member of owner to pay many times over the odds for naming rights to stadium £400m? Haven't derby done similar thing to villa? Its basically cheating ffp which is definitely not allowed..

UEFA was suppose to crack down on such practices since man c used family member of owner to pay many times over the odds for naming rights to stadium £400m? Haven't derby done similar thing to villa? Its basically cheating ffp which is definitely not allowed..

I disagree Alan. The idea of FFP was to stop clubs being loaded with debt. If a club wishes to sell an asset then surely that is their business in the same way as selling a player? If someone wants to pay ridiculous amounts of money for advertising or stadium naming rights let them I say. What I draw the line on is any ex-owner then returning and wanting their money back.

UEFA was suppose to crack down on such practices since man c used family member of owner to pay many times over the odds for naming rights to stadium £400m? Haven't derby done similar thing to villa? Its basically cheating ffp which is definitely not allowed..

I disagree Alan. The idea of FFP was to stop clubs being loaded with debt. If a club wishes to sell an asset then surely that is their business in the same way as selling a player? If someone wants to pay ridiculous amounts of money for advertising or stadium naming rights let them I say. What I draw the line on is any ex-owner then returning and wanting their money back.

The problem here is that the owners have sold the stadium to themselves, now I do not think that is allowed

Unfortunately, Villa have already reached the Premier League so little can be done - the Premier League aren’t going to kick them out. But they could be in deep trouble should they find themselves back in the Championship ( as is likely). They can’t sell their stadium again

UEFA was suppose to crack down on such practices since man c used family member of owner to pay many times over the odds for naming rights to stadium £400m? Haven't derby done similar thing to villa? Its basically cheating ffp which is definitely not allowed..

I disagree Alan. The idea of FFP was to stop clubs being loaded with debt. If a club wishes to sell an asset then surely that is their business in the same way as selling a player? If someone wants to pay ridiculous amounts of money for advertising or stadium naming rights let them I say. What I draw the line on is any ex-owner then returning and wanting their money back.

The problem here is that the owners have sold the stadium to themselves, now I do not think that is allowed

Correct also my point is that the rights were sold above market rate and a family member owns Etihad airlines which again is not allowed ! Eg CCS rights could not be sold to tans wife for billion for reasons stated!
By villa and derby doing what have they are trying to get around ffp debt allowance

Unfortunately, Villa have already reached the Premier League so little can be done - the Premier League aren’t going to kick them out. But they could be in deep trouble should they find themselves back in the Championship ( as is likely). They can’t sell their stadium again

They will not be in trouble with the EFL if they get relegated, because the EFL was happy with the scam, but now having put their paperwork in to the premier league, who are going to investigate because they are not at all happy with what they have submitted. So no I guess they will not chuck them out but I can see a 9 point deduction on the cards

Unfortunately, Villa have already reached the Premier League so little can be done - the Premier League aren’t going to kick them out. But they could be in deep trouble should they find themselves back in the Championship ( as is likely). They can’t sell their stadium again

They will not be in trouble with the EFL if they get relegated, because the EFL was happy with the scam, but now having put their paperwork in to the premier league, who are going to investigate because they are not at all happy with what they have submitted. So no I guess they will not chuck them out but I can see a 9 point deduction on the cards

Suspect UEFA will have a say as its their legislation?

Unfortunately, Villa have already reached the Premier League so little can be done - the Premier League aren’t going to kick them out. But they could be in deep trouble should they find themselves back in the Championship ( as is likely). They can’t sell their stadium again

Quote (bluebird58): "They can’t sell their stadium again"

Well, that's not correct, as technically if they get away with this they can potentially sell it every season to themselves at any price they want/need for their monetary purposes

We got 'done' under FFP and we took it on the chin. If the Villans (apt name) have done wrong, I hope they get punished sufficiently to deter others

The problem here is that the owners have sold the stadium to themselves, now I do not think that is allowed

TBH I admit to not knowing the full specifics of the rules surrounding FFP (or whatever it is called now) but the EFL has allowed both Aston Villa and Derby to sell their grounds to their owners.

Again I cannot see the problem. The ground was probably owned by the company which ran those clubs and that company was then owned at least partly by the club owner.

Therefore the owner purchased the ground from the company which owns Aston Villa and transferred it into his sole ownership. If Aston Villa or Derby Football Clubs were sold in the future their value would be a lot less as they wouldn't own their own grounds.

Correct also my point is that the rights were sold above market rate and a family member owns Etihad airlines which again is not allowed ! Eg CCS rights could not be sold to tans wife for billion for reasons stated!
By villa and derby doing what have they are trying to get around ffp debt allowance

Allan you could well have a point about the selling the rights above market value. There is something called 'Profitability and Sustainability' rules which would cover the examples you have given above.

However, I still think a club can dispose of an asset to balance the books. I remember we sold a small amount of land to PMG about 10 years ago to settle a tax bill although admittedly FFP didn't exist then.

If Villa have sold their ground to their owner then the company Aston Villa FC is now worth a lot less than it was when they did own their ground. If sold the current owner would still own Villa Park and the new owner would have to pay him rent.

Unfortunately, Villa have already reached the Premier League so little can be done - the Premier League aren’t going to kick them out. But they could be in deep trouble should they find themselves back in the Championship ( as is likely). They can’t sell their stadium again

Quote (bluebird58): "They can’t sell their stadium again"

Well, that's not correct, as technically if they get away with this they can potentially sell it every season to themselves at any price they want/need for their monetary purposes

We got 'done' under FFP and we took it on the chin. If the Villans (apt name) have done wrong, I hope they get punished sufficiently to deter others

I not sure you are right there Sven. Ground ownership has transferred from Aston Villa FC to the owner. That person now owns Villa Park not AVFC. If the ground was sold again the money would go to the owner and not the football club. It would be hard to see how the owner could then transfer that money to the football club without breaching FFP or P & S rules.

Not sure what the pro elm is personally. Club in debt, club sells assets (whether players or property) club clears debt. They can only sell it once. The problem arises should they buy it back from the owners at the same price when flush with premier league money.

Not sure what the pro elm is personally. Club in debt, club sells assets (whether players or property) club clears debt. They can only sell it once. The problem arises should they buy it back from the owners at the same price when flush with premier league money.

Selling players is acceptable/legitimate way to reduce debt! But owner of club selling ground to himself is dubious practice and smacks of trying to avoid ffp, hence people looking into how/reasons deal was done ..

Not sure what the pro elm is personally. Club in debt, club sells assets (whether players or property) club clears debt. They can only sell it once. The problem arises should they buy it back from the owners at the same price when flush with premier league money.

Selling players is acceptable/legitimate way to reduce debt! But owner of club selling ground to himself is dubious practice and smacks of trying to avoid ffp, hence people looking into how/reasons deal was done ..

The club owner owns the company which runs Aston Villa FC. AVFC Ltd is a commercial entity and owned Villa Park. What has happened is AVFC Ltd has sold VP to the company owner who has paid £52m for the real estate asset.

The owner is now the personal owner of VP and it will remain his property even if he sells AVFC Ltd to someone else. Further he will almost certainly charge Aston Villa rent for playing at VP despite being the club 'owner'

Not sure what the pro elm is personally. Club in debt, club sells assets (whether players or property) club clears debt. They can only sell it once. The problem arises should they buy it back from the owners at the same price when flush with premier league money.

Selling players is acceptable/legitimate way to reduce debt! But owner of club selling ground to himself is dubious practice and smacks of trying to avoid ffp, hence people looking into how/reasons deal was done ..

The club owner owns the company which runs Aston Villa FC. AVFC Ltd is a commercial entity and owned Villa Park. What has happened is AVFC Ltd has sold VP to the company owner who has paid £52m for the real estate asset.

The owner is now the personal owner of VP and it will remain his property even if he sells AVFC Ltd to someone else. Further he will almost certainly charge Aston Villa rent for playing at VP despite being the club 'owner'

Doesn't this sound like a wiz to avoid falling foul of FFP? Unless of course there is a logical reason all of a sudden it's a good idea? and who's going to buy villa if they don't own VP? Coventry is a solitude lesson in what can happen when someone else owns the real estate!

If leeds did that we'd be banned till next season minus 80 put on us oh yeah.

Doesn't this sound like a wiz to avoid falling foul of FFP? Unless of course there is a logical reason all of a sudden it's a good idea? and who's going to buy villa if they don't own VP? Coventry is a solitude lesson in what can happen when someone else owns the real estate!

The logical reason to sell VP could be to comply with FFP? The question of who is going to buy AVFC when they don't own their ground is irrelevant. What is relevant is AVFC Ltd. is now worth a lot less than it was when they did own VP but in return they have received a £52m cash injection to comply with FFP.

If you take the blinkers off and think objectively then this is simply a business transaction designed to stabilise AVFC Ltd.

If leeds did that we'd be banned till next season minus 80 put on us oh yeah.

That's true but it would be whole heartily popular with the rest of the world

Doesn't this sound like a wiz to avoid falling foul of FFP? Unless of course there is a logical reason all of a sudden it's a good idea? and who's going to buy villa if they don't own VP? Coventry is a solitude lesson in what can happen when someone else owns the real estate!

The logical reason to sell VP could be to comply with FFP? The question of who is going to buy AVFC when they don't own their ground is irrelevant. What is relevant is AVFC Ltd. is now worth a lot less than it was when they did own VP but in return they have received a £52m cash injection to comply with FFP.

If you take the blinkers off and think objectively then this is simply a business transaction designed to stabilise AVFC Ltd.

Ok it's a simple business transaction that the authorities want to look at just in case it's dodgy I will go with that.

Doesn't this sound like a wiz to avoid falling foul of FFP? Unless of course there is a logical reason all of a sudden it's a good idea? and who's going to buy villa if they don't own VP? Coventry is a solitude lesson in what can happen when someone else owns the real estate!

The logical reason to sell VP could be to comply with FFP? The question of who is going to buy AVFC when they don't own their ground is irrelevant. What is relevant is AVFC Ltd. is now worth a lot less than it was when they did own VP but in return they have received a £52m cash injection to comply with FFP.

If you take the blinkers off and think objectively then this is simply a business transaction designed to stabilise AVFC Ltd.

Ok it's a simple business transaction that the authorities want to look at just in case it's dodgy I will go with that.

Exactly