SSN were saying this morning that Villa missed their tax payment to HMRC because of cash flow problems in China and that they are trying to negotiate phased payments of the shortfall.
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SSN were saying this morning that Villa missed their tax payment to HMRC because of cash flow problems in China and that they are trying to negotiate phased payments of the shortfall.
It was also mentioned on Talk Sport this morning that Tony Xia was having difficulty getting his money out of China and thereby was unable to provide the level of support required. This might be speculative but could explain the cash flow problem mentioned above.Originally Posted by jon1959
It's been known for some time that the Chinese Govt is unhappy about so much capital being invested abroad, not least in football clubs, and is clamping down. The recent purchase of Southampton FC shares was done through Hong Kong, which is still financially independent of the Chinese Govt.
Matt Scott who writes about football finances called this last year especially in relation to Aston Villa.
There has just be an item on Midlands Today about Aston Villa's financial woes. It backed up what is said above. Villa have overspent. Money going out is greater than money coming in. Chinese government are no longer keen to encourage investment in British football teams. Villa will have to be sold to someone with deep pockets. No mention of FFP though. So....... mind the gap Villa.
Staggering to think Villa have come to this situation, No way can clubs be successful spending that way and gambling on the future. Boy did they get the numbers wrong with last seasons wages and failure to grt promoted. There might be better news for them if this gossip is right though, taken from BBC footy gossip.
American Peter B Freund, a minority shareholder in baseball's New York Yankees, is lining up a £75m bid to buy Championship club Aston Villa. (Times - subscription required)
Quite possible. In the year to 31 May 2017 Recon borrowed £49m from its ultimate holding company in China - Zhejiang Ruikang (Recon) Investment Co. Ltd which was itself owned by Mr J Xia. Maybe the money from that source has now dried up.
In February of this year Aston Villa Fc Ltd borrowed just over 7.5m Euros from the London branch of an Australian bank Macquarie Bank Limited , presumably to help with cash flows.
The money borrowed was secured against transfer fees receivable in the future by taking an assignment of the debts due to the club by Olympique De Marseille in respect of the transfer of Jordan Amavi. The transfer monies are due to be paid in two equal instalments of 4m Euros on 15 July 2018 and 15 July 2019.
The same charge document also referes )in an appendix to a similar deal relating to the loan fee due by Olympique in respect of another player Carlos Sanchez Moreno - again two equal amounts of 4m Euros due on 15 July 2018 and 15 July 2019.Again , the amount due has been assigned to the bank.
Keith, if you were guessing type - how will they get out of this hole they have created?
Sorry , missed the question earlier.
The only realistic way out of trouble is a sale of a few of their better players at a big profit while they also try to bring down their wage bill still further. Grealish is in their books at zero value so any transfer fee for him would be pure profit. That might apply to some others as well but they do have a number of players that cost them a lot of money and who are on big wages that will probably be difficult to shift at a profit.
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