Villa have announced a record £53.9m loss for the last financial year, although revenues have grown to equally record levels.
Now I haven’t seen the figures myself and there are better placed on the forum to give their thoughts, I’m going off the figures published by the Official Site earlier today.
Whilst the group loss rose from £37.6m in 2009-10 to £53.9m, revenues rose to a record £92m after the club saw a 1.3% increase overall, which included a 15.9% year on year increase in commercial income.
Matchday income dropped following early exits from Cup competitions.
The club also reduced bank borrowings by £8.3m and Randy invested a further £25m in the club.
What will take the headlines is ‘exceptional charges’ of £12m in relation to changes in management personal.
Please don’t get too excited, that wouldn’t be just O’Neill alone it would also have been all the backroom staff. I also think given the dates it includes Gerard Houllier and his staff, but it wouldn’t include the compensation paid for Alex McLeish’s staff.
Chief Financial Officer Robin Russell said of the results:
‘Given the challenging economic environment that we have been experiencing in the West Midlands and indeed globally, we are pleased with the positive trends in our financial performance. The Board are confident that the actions taken since the end of the 2010-11 financial year have galvanised the long term stability of the club and have also given us a better financial platform on which to build for future success. Our objectives are to compete strongly on the pitch and to achieve sustainability as well as compliance with UEFA’s Financial Fair Play requirements.’
Overall I’m surprised the losses are that big still, but without the smaller details it’s hard to judge.
The positives are the increasing revenues, and with more high earning under performers having either departed or set to depart hopefully the figures should look better in the next accounts.
It again shows how far beyond our means we were living, but with that in hand given the write offs we need to be looking to rebuild on the pitch in the summer and get some positivity back amongst the fans.
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