Aston Villa Financial Analysis 2023-24

Quick Financial Summary

For a club with such rich heritage and ambitious owners, balancing on-field success with financial sustainability is key. Let's dive deep into Aston Villa's financial results for the 2023-24 season and see what they reveal about the Villans' approach under the NSWE ownership group. With a record Premier League points tally and Champions League qualification secured, have the club's finances been equally impressive, or are there challenges ahead?

On-Field Performance

The 2023/24 football season saw a spectacular return to European football with Villa competing in the UEFA Conference League and achieving a remarkable 4th place Premier League finish under Unai Emery. This top-four finish meant qualification for the UEFA Champions League for the first time in over 40 years, marking a dramatic turnaround for a club that was in the Championship as recently as 2019.

Financial Overview

Revenue Breakdown

Total Revenue: £275.7 million (up 26.6% from £217.7 million in 2022-23)

• Premier League/Broadcast & UEFA Income: £184.4 million (up 18.9%, 67% of total revenue)
• Commercial & Sponsorship: £63.3 million (up 36.6%, 23%)
• Matchday: £28.0 million (up 49.2%, 10%)

Villa's revenue structure shows increasing diversification, with commercial growth and European competition providing significant boosts. While broadcast income still dominates, improved commercial performance indicates healthier revenue streams from multiple sources.

Key Expenses

• Staff Costs: £252.0 million (up 29.8% from 2022/23)
• Player Amortisation: £96.5 million (up 4.3%)
• Other Operating Expenses: £71.3 million (up 7.4%)

The dramatic rise in staff costs reflects the club's ambition but also poses risks to long-term sustainability. With player wages forming the bulk of this expense, the 29.8% year-on-year increase reflects both new signings and improved terms for existing squad members. Major investment saw £167.6 million spent on player acquisitions, including significant outlays for talents like Moussa Diaby and Pau Torres.

Financial Performance

• Operating Loss: £80.6 million (compared to £117.0 million loss in 2022/23)
• Loss Before Tax: £85.9 million (compared to £120.3 million loss)
• Wages to Revenue Ratio: 91% (compared to 89% in 2022/23)

While losses remained significant, they showed improvement from the previous year. The wages-to-revenue ratio of 91% is particularly concerning, as financial analysts typically consider 70% to be the upper threshold for sustainable operations in football. This places Villa among the highest in the Premier League for this metric.

Major Player Investments

The 2023-24 accounts reflect significant transfer activity, with player registration cost additions totalling £167.6 million for the year. This substantial investment in the squad contributed significantly to the increased amortisation costs and wage bill.

Key signings included Moussa Diaby from Bayer Leverkusen, Pau Torres from Villarreal, and Youri Tielemans on a free transfer. Each of these players represented significant investments designed to elevate the quality and depth of the squad. The club also secured several promising talents with potential future resale value.

Premier League Context

When comparing to Premier League averages:

• Matchday Income: At 10% of total revenue, this is below the league average of closer to 15%
• Wages to Revenue Ratio: Villa's 91% is significantly higher than the Premier League average of approximately 60-65%
• Broadcast Dependence: The club's 67% revenue from broadcasting and UEFA is slightly higher than the league average of around 65%

PSR Compliance Challenges

The most pressing issue facing Villa management is navigating the Premier League's Profitability and Sustainability Rules (PSR). With accumulated losses of £85.9 million for 2023-24 (following £120.3 million in 2022-23), careful financial management is essential. The club has been proactive in this area, with strategic player sales post-reporting period generating £64.9 million in income, helping to offset the £92.2 million spent on new acquisitions. This transfer market approach – developing players and selling high while reinvesting strategically – appears central to Villa's model for balancing ambition with compliance. The Champions League qualification provides significant additional revenue streams that should ease PSR pressure, but maintaining the delicate balance between competitive investment and financial regulations remains a key challenge.

Post-Season Developments

The financial impact of major transfers after the June 2024 reporting period will appear in next year's accounts. The club's accounts indicate:

• The net income of transfers taking into account applicable levies and sell-on clauses was £64.9 million
• The net cost of transfers taking into account applicable levies was £92.2 million

Additionally, the club secured post-season investment with a share capital issue totaling £94 million from the club's ultimate parent company, V Sports S.C.S.

Strategic Approach

Villa's model currently appears to be based on:

• Heavy Initial Investment: Significant spending on playing talent to establish Champions League status
• Infrastructure Development: Continued investment in training facilities and stadium plans
• Owner Support: Substantial backing from NSWE ownership group, with significant share capital injections
• Commercial Growth: A notable 36.6% increase in commercial revenue shows progress in this area

What This Means For Fans

The Positives

• Historic Achievement: The investment has delivered Champions League qualification and Villa's best Premier League season
• Infrastructure Growth: Continued improvements to Bodymoor Heath training facility benefit the club long-term
• Commercial Expansion: Significant growth in commercial revenues shows the club's rising global profile

The Challenges

• Financial Sustainability: The 91% wages-to-revenue ratio far exceeds the 70% Premier League recommendation
• Profitability & Sustainability Rules: Continued losses could pose PSR compliance challenges
• Reliance on Ownership: The club remains heavily dependent on owner funding

Looking Forward

For supporters, these accounts reflect both the ambition of the NSWE era and the realities of competing at the highest level of European football. While the losses are substantial, the on-field improvement and infrastructure investment demonstrate a long-term vision that extends beyond immediate results.

Champions League qualification for the 2024/25 season will bring significant additional revenues, and continued commercial growth shows promising signs for future sustainability. The post-year injection of £94 million in share capital demonstrates the continued commitment of the ownership group to providing the resources necessary to compete at the highest level.