Nassef Sawiris has Man City-style plan at Aston Villa amid £930m reveal - Kieran Maguire
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The almost overnight success delivered by Unai Emery and Monchi at Aston Villa has made them perhaps the ultimate representation of the pitfalls of modern football’s regulatory system.
Villa’s owners – private equity billionaire Wes Edens and Egyptian oil magnate Nassef Sawiris – have rolled the dice to get the historic club into Europe.
But despite their 4th-place finish last season and subsequent venture in Champions League football in its most lucrative format ever, Villa are now encountering regulatory issues.
Under Premier League spending rules, Villa are only allowed to lose £105m over a rolling three-year period.
Under UEFA’s system, the margins are even tighter, with spending currently capped at 80 per cent of annual revenue, shrinking to 70 per cent from next season.
With Man City’s 115 charges hearing now in progress, the likes of Nottingham Forest and Everton being punished for spending breaches, and the imminent introduction of an independent regulator for English football, it is hard not think that Villa and their peers are approaching a defining moment in terms of football governance.
To explore the topic in more depth and the long-term plans of the owners at Villa Park, TBR Football spoke exclusively to Liverpool University football finance lecturer, Price of Football author, and industry insider Kieran Maguire.
- READ MORE: Aston Villa could sign forward compared to Eden Hazard, Monchi has watched him since 2022
Villa’s reaction to Man City’s legal case and future investment plans
While Man City’s hearing over 115 alleged financial offences has stolen the headlines, City’s countersuit against the Premier League could also prove to be hugely significant.
City are challenging the Premier League’s associated party transaction (APT) rules, which dictate that commercial deals struck with owner-linked entities must be assessed for fair market value.
The opinion being put forward in the arbitration courts is that the system is anti-competitive and unfairly enforced, and Villa are one of the clubs who are backing City’s legal challenge.
Reports earlier this week suggested that City had won at least a degree of victory in the case, but there has been no confirmation and several stories claiming the opposite since.
“Villa will be frustrated at the lack of transparency in the APT verdict,” said Maguire.
“There is no doubt that the club would like to accelerate in terms of owners investment given the wealth of Edens and Sawiris.
“That can come either through direct investment in terms of increased equity or through third parties, sponsorship and commercial arrangements.”
Champions League ticket prices and PSR
If the APT rules were thrown out entirely, it would effectively spell the end of the PSR system as clubs would be able to get around it via inflated sponsorship deals.
PSR was cited by Villa’s president of business Chris Heck, who claimed that spending rules had forced them to charge incredibly high prices for their Champions League clash against Bayern Munich tomorrow.
But Maguire is sceptical, suggesting that PSR is an easy scapegoat.
“Chris Heck is very conveniently blaming PSR as the reason behind the very high prices charged for Champions League home matches.
“It has to be noted that this doesn’t appear to have had a negative impact on ticket sales, so he will feel vindicated.
“I suspect there is close to zero worries from the owners about grumblings from fans.
“If they can point to a Villa Park when hosting the likes of Bayern Munich with high prices charged, they will see that as a justification of the strategy.
£50 cash injection and Nassef Sawiris’ soaring wealth
As well as a £44m equity injection into Villa’s parent company V Sports a few weeks ago, Sawiris has had several business wins recently.
His wealth has risen by £930m in the year to date, according to the latest data released by Forbes yesterday.
If PSR was not a factor, Sawiris and Edens’ view of Villa as a “trophy asset”, like Man City’s status under Abu Dhabi United Group, would see them invest far more in the club, claims Maguire.
“Villa have zero external debt, which means they are not paying interest on loans.
“That means that PSR is assisted indirectly through the wealth of the club owners.
“I’m sure Villa fans will be delighted by the contributions made by Edens and Sawiris.
“They will be pleased that the wealth of those individuals continues to have an upwards trajectory.
“There is nothing more that billionaires like than spending money on trophy assets.
“That is clearly the position of Aston Villa as far as the two owners are concerned.”
