Sharp Rise in Half-Time Losses At Villa - 18/09/03

Aston Villa suffered a sharp increases in half-time losses, made worse by expensive player disposals. Turnover was up slightly (sales rose to £19.1m from £18m previously helped by an increase in match attendances) but the operating loss increased from £3.6m to £5.7m. When the club included the hit from selling two foreign players, the pre-tax loss doubled from £8m to £16.5m. Bosko Balaban has signed a five-year £5.8m del in 2001 but never started a Premiership game and his estimated £15,000 a week wages meant Villa spent £9m on him before releasing him on a free transfer. Nevertheless, the club claims to have one of the strongest balance sheets in the league.

Following the disappointing full year results, veteran chairman Doug Ellis, who is now nearing eighty, said Villa was facing the difficult 'challenge of competing regularly for honours while remaining financially viable.' Of course, that is a challenge that faces all Premiership clubs, but Mr Ellis explained that Villa was increasingly being left behind by the likes of Manchester United, Arsenal and Liverpool, but pledged it would 'continue to operate within its resources.' The problem is that it does so, the club may continue to punch below its weight. As the leading Midlands club (a title that City fans would dispute) it should be able to match the top clubs. As Villa deputy chief executive Mark Ansell pointed out, tenth place in the Premiership would of itself generate £4.5m more in income.

Player wages rose to 71 per cent of revenue. On the bright side, the £13.8m of player amortisation charges that sunk Villa to its worst results in a decade are indeed sunk costs. They represent Villa's share on a spending binge on players which is now over for all clubs apart perhaps from Chelski.

Mr Ellis refused to be drawn on the nature of the 'intermediaries' who are interested in buying shares but said that contacts were continuing. He said that he understood that Jack Petchey, who had increased his share to 13 per cent, was a value investor and not interested in owning a football club. Venezuelan billionaire, Gustavo Cisneros, has also been linked with the club whose shares have risen over the summer. The club confirmed in September that talks had taken place with a 'potential investor'.