Aston Villa are operating in a restrictive environment when it comes to Profit and Sustainability Rules.
The Premier League’s spending system dictates that clubs can lose no more then a £105m over a rolling three-year period.
Villa are well over that threshold having rolled the dice financially to get into the Champions League.
There can be no doubt that the gamble paid off, with Unai Emery’s side set to play in Europe’s top club competitor next season for the first time since 1982-83.
But the club face having to sell players before the end of the current PSR assessment window on 30 June – not ideal preparation for 2024-25.
One area that Villa have outspent their peer group is agent fees, which count towards the PSR calculation.
And with negotiations underway with one super-agent already, they need to be cautious to avoid shelling out too much to player representatives this summer too.
Villa in talks with Andreas Pereira’s agent Kia Joorabchian
According to Brazilian outlet Globo, Villa are engaged in dialogue with Kia Joorabchian regarding his client Andreas Pereira.
The 28-year-old Fulham playmaker, who is of Man United’s academy, is believed to be valued at £35m by his club.
Joorabchian represents Villa’s Douglas Luiz as well as a number of other A-list clients and will push for the very best for Pereira, as well as for his own interests.
This raises the issue of agent fees.
Villa spent almost £16m on agents in 2022-23 according to official FA data and that figure is likely to rise again when the 2023-24 figures are released.
With FIFA taking steps to curb the influence of agents and with agent fees being factored into PSR (formerly financial fair play, or FFP), Villa need to be restrained in this department.
Are Villa at risk of FFP breach?
Villa’s losses over the last three years are substantial.
While the Champions League will be worth an absolute minimum of £40m for them, that income won’t count towards PSR until next season.
Villa do need to sell players in order to comply with the Premier League’s PSR model.
Next season, the income from club-record commercial deals with Adidas and Betano, each worth up to £20m per year, will come into play.
That and the Champions League cash mean that while Villa will need to consider PSR, they are in a position to be able to comply.
Interestingly, Villa would have benefited from a proposal at the Premier League’s AGM last week to increase the allowable loss limit from £105m to £135m.
But they motion, which was put forward by Crystal Palace, was struck down.
The Premier League will trial a new PSR system next season that tied spending on agents, transfer fees and wages to 85 per cent of revenue.
Villa will also need to comply with UEFA’s PSR model, which is similar only with a stricter 70 per cent curb on playing budget expenditure.