As the alarm bells of cost-cutting ring out in the corridors of Villa Park as the club hurtles towards the relegation trapdoor, if the playing staff didn’t receive a much-needed shake-up at the start of the year, the financial side of the club has.
On February 4th, in came chairman Steve Hollis and Mervyn King as directors, while on February 11th, Robin Russell, the financial director departed the club as a director and secretary from the club’s records at Companies House.
We’ve already heard about the general effect on the workforce of the current situation at chairman Randy Lerner’s second ‘Factory of Sadness’ (the first being the Cleveland Browns) from a frustrated ex-employee (see below interview), but we’re still waiting to see what both Hollis and King have been reacting to in terms of the black and white hard figures – the club’s accounts up to May 2015.
According to the Companies house website though, those accounts are actually overdue, which seems to buck the trend of the club’s normal punctual submission of them.
Of course, with the financial director recently jettisoned and the new economic guard of Hollis and King barely in position, that may explain any hold-up to some degree.
Speculation behind the scenes predict the figures from the next accounts up to 31 May 2015 may not make for happy reading. Despite the double-trip to Wembley and the prize money and extra TV bounty that the FA Cup run brought in, a substantial loss in the millions is predicted.
It’s not the ideal foundations for a trip to the Championship, although the increased parachute payments that the new TV deal bring will provide the monetary ointment to provide Villa’s finances temporary relief.
From the 2016/17 season, relegated clubs will receive 55 per cent of the equal share of broadcast revenue paid to Premier League clubs in the first year after relegation, 45 per cent the following year and 20 per cent in year three.
The biggest factor in getting Villa’s finances back on track though will be the football side of the coin. A mass overhaul of the squad is needed with huge question marks in terms of most of the players in the current squad.
The question is though can Villa turn it around within a two-season window, they’d realistically have a financial advantage to pull it off?
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will the club receive 55% of this season’s revenue in parachute payments in the first season or 55% of next season’s? the difference could be huge. if it is the latter then isn’t it fair to suggest that 55% could be more than what they are currently getting now? i hope the answer is yes.
The resignation of the CFO was telling. Something is pretty amiss, can’t wait to see what the figures are. I could turn it around in two seasons, though there would be “blood in the water”. Am failing to see why Hollis and King are seen as the saviors, Hollis has done nothing admirable or original and King, well lemme see, all the new tax laws and negative interest rates are partially down to his running of the financial system. 40% inheritance tax on residential property held in trusts – Directly resulting from the Financial Crisis.
Oh and final, MYOLDMAN code for Uber. Wow, you guys are supporting the end of the taxi industry? Hope you don’t have any friends who are taxi drivers, because as soon as it’s allowed Uber will run AI and get rid of the drivers. Just sayin.
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