"Aston Villa may reportedly have issues with PSR moving forward as the Premier League is expected to move closer to UEFA's Financial Fair Play laws. Football finance expert Adam Williams has discussed this potential issue for Villa, explaining that they're currently losing as much as 140m a year. It remains to be seen precisely what this will mean for Villa if the rules change, but Williams has given some idea as to what the club can expect in their current financial situation."
"Under PSR, you're not allowed to lose any more than 105m over a rolling three-year period, with allowable expenses like academy and infrastructure investment exempt from that calculation, he said. Per their last few sets of accounts, Villa are losing in the region of 140m at the operating level every single year. Even with European income and PSR-exempt costs, that's a big shortfall you have to make up to comply with PSR."
Premier League is set to transition from Profitability and Sustainability Rules (PSR) toward regulations resembling UEFA's Squad Cost Ratio and Financial Fair Play. Under PSR, clubs may not lose more than 105m across a rolling three-year period, with academy and infrastructure costs exempt. Aston Villa are reportedly losing about 140m at the operating level per year based on recent accounts. Even accounting for European income and PSR-exempt costs, a substantial shortfall exists to meet PSR thresholds. The financial gap has already contributed to selling Douglas Luiz, Jhon Duran, and Jacob Ramsey. Continued losses could force further major sales and reduce transfer spending.
Read at www.caughtoffside.com
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