Aston Villa Nearing £55 Million Sale of Women’s Football Team

Aston Villa is close to securing a £55 million deal to sell its women's football team to its parent company, V Sports, co-owned by Wes Edens and Nassef Sawiris. This strategic move aims to help the club comply with the Premier League's Profitability and Sustainability Rules (PSR), which limit losses to £105 million over a three-year period. With reported losses exceeding £195 million over the past two seasons, the sale is seen as a necessary step to avoid breaching these financial regulations.

The proposed transaction involves V Sports purchasing a 90% stake in the women's team, with the remaining 10% potentially sold to external investors, possibly from the United States. This approach mirrors a similar strategy employed by Chelsea, which sold their women's team to its holding company, BlueCo, for £200 million. However, such intra-company sales must be approved by the Premier League to ensure they reflect fair market value. While the Premier League permits these transactions, UEFA does not recognise them as income for financial fair play purposes, which could pose challenges for Villa's compliance with UEFA's regulations.

The sale of the women's team would provide Villa with a significant financial boost, allowing them to offset recent losses and remain within the PSR limits. This move is part of a broader strategy to alleviate financial pressures, which also includes offloading high-wage players and fringe squad members. The club is reportedly working to terminate Philippe Coutinho's contract and sell players like Kaine Kesler-Hayden and Louie Barry. These actions aim to reduce the club's wage bill and improve its financial standing.

The timing of the deal is crucial, as it needs to be agreed upon before the PSR accounting deadline to be included in the 2024-25 financial accounts. Villa are confident that the sale will be finalised in time to meet this deadline, ensuring compliance with the PSR regulations and avoiding potential penalties.

This development highlights the growing financial scrutiny clubs face under the PSR and the innovative strategies they employ to navigate these regulations. While the sale of the women's team may raise questions about the valuation and fairness of such transactions, it highlights the complex financial landscape Premier League clubs must navigate to maintain compliance and economic health.