Aston Villa and Wolves handed ‘non-starter’ FFP update as points deductions scrutinised
Aston Villa news from BirminghamLive as Premier League clubs discuss new financial controls.
The future of squad cost controls is the primary issue at today’s Premier League shareholders meeting, but reports claim that a ‘luxury tax’ scheme is a non-starter.
It had previously been reported that points deductions would be scrapped in favour of fines, but Sky Sports say clubs who break the Premier League’s financial rules can still expect to be given significant points deductions in the future.
The league wants the new system in place by the summer, before the new season starts in August. There will be no vote on the issue today.
The timescale for the new punishments is also a key issue on the agenda of the shareholders meeting. It comes after Everton and Nottingham Forest have both been deducted points this season.
Previously, financial breaches reported in one financial year were punished in the following year, but this led to criticism that clubs weren’t being sanctioned quickly enough.
The ‘luxury tax’ model would redistribute fines to Premier League teams who complied with the rules and possibly even to an emergency EFL fund. However, reports indicate the majority of Premier League clubs believe the model will not be voted in.
Villa published their accounts back in March and revealed a loss of nearly £120m. During the financial year, Villa invested a further £63.7m in the acquisition of new players whilst also generating a profit of over £22m from player sales
Employee wage costs rose to £194.2m (up from £137m) and the amortisation of player contracts also increased by £10m to £92.5m reflecting the increased investment in playing staff.
