After spending £ 135m last summer, championship relegation just isn’t worth thinking about for Dean Smith … as his relegation-threatened Aston Villa side takes on champions Liverpool on Sunday
There has never been a worse time to be relegated from the Premier League. Missing the wealth of the Promised Land is painful enough even without the consequences of the corona virus pandemic.
The prospect of a season without receipts, uncertainty over the Football League television deal, a crash in the transfer market and possibly reduced parachute payments due to the £ 330m discount to broadcasters is enough to terrify any club threatened by relegation .
To deal with the difficulties ahead, the Football League, as revealed by Sports email, want to introduce a pay limit with the Championship’s set at £ 18m.
Aston Villa fights for their Premier League life – and top-class financial security
So when Aston Villa manager Dean Smith watched West Ham snatch their late winner against Chelsea, he could be forgiven for taking a deep breath.
Villa finds itself in the relegation zone with champions Liverpool opposing their opponents today followed by in-form Champions League pursuers Manchester United.
For a club that spent £ 135 million over the summer, as there were only 11 contracted players after their playoff win, whose pay to get promoted was £ 95 million, and who lost £ 68 million is the worst what the worst thinks about. And that’s exactly what Smith refuses to do.
After spending £ 135 million last year, relegation is hardly worth thinking about for Dean Smith
“The survival price is no more important to me now than the pre-pandemic,” said Smith. “We’ve worked really hard to get where we are now. We had to undergo a huge change within a month as we were the last team to advance to the league.
“We are going to work very hard to stay in the competition. That is currently our only focus. We don’t focus on the championship or anything, it’s just survival in the Premier League. ‘
Villa still has a fighting chance even in difficult conditions. If they survive, many of the financial questions are likely to disappear.
But what if the worst happens? The owners of Villa are worth Nassef Sawiris and Wes Edens together are worth £ 6.4 billion and have so far deposited £ 175 million in the form of issued shares.
Captain Aston Villa Jack Grealish can be a savior for the club in more ways than one
Still, losses last year were £ 68 million, even with the owners selling Villa Park to themselves for £ 57 million – behind only Chelsea and Everton of the current Premier League clubs. Their promotion salary received 175 percent of their income.
Under current regulations, Villa is allowed £ 61 million of permitted loss, taking into account infrastructure and academy costs, for three years. So there is enough fabric left to cut.
“If Villa is relegated, they will have to have an asset sale,” said Kieran Maguire, football finance teacher The Mail on Sunday. The crown jewel will be Jack Grealish as far as they are concerned and much depends on his summer market valuation.
“If they get 40 to 60 million for him, then in my opinion that covers financial fair play considerations. He will be their escape from the prison card. ‘
United are expected to land Grealish this summer with former Villa manager Tim Sherwood, who even claims a deal had already been made.
How dark the clouds will be also depends on what the profit and sustainability rules actually are. This still has to be decided domestically.
If Grealish Villa cannot maintain, he can pay the club a significant sum this summer
UEFA has already announced that they will relax theirs. This season is combined with the next season and losses are cut in half. Whether the Premier League and Football League follow suit is “a critical issue,” says Maguire.
Even if the £ 18 million wage cap is introduced to replace the profit and sustainability rules that are under discussion and give demoted clubs a longer period to lower theirs, much remains to be done.
That would leave Grealish, the man who will save Villa the most from the fall, and also the one who will save them the most if they fall.