Transfer market collapse hits Villa

The collapse of the transfer market means that Aston Villa showed a loss of £8.1m (€12m) for the six-month period which ended on November 30, 2002.

Villa’s turnover actually increased by £1.1m (€1.5m) to £18m (€27m), the wages of their playing staff were also kept in check and the operating expenses only rose slightly.

But it was the drop in profits made from the sale of players – from £9.8m (€15m) to £2.8m (€4.2m) – which was the most significant change.

Villa chairman Doug Ellis, in his report, said: “We have consistently pointed out to our shareholders and supporters the difficult challenges that the industry faces of spiralling transfer and player costs.

“There are signs of the industry beginning to come to terms with this problem and, in this respect, for some time this club has planned for the long-term whilst balancing short-term risk and the need to remain competitive.

“Salary costs have remained at similar levels in this half-year to the previous year’s results.

“However, as a result of the significant financial problems faced by other clubs and the dampening effect of the introduction of transfer windows, we are unlikely to be able to rely on significant transfer profits.

“In the previous two years these transfer profits have absorbed losses caused by the level of players’ salaries and amortisation.

“This comment is underlined by our results for the half-year to November 30 2002 where profits on disposal of players has fallen."