By David Owen
February 28 – Aston Villa have disclosed a heavy operating loss of more than £80 million for the year to 31 May 2016, which saw them relegated from the Premier League.
The Birmingham club, now under new ownership but struggling in English football’s second tier, included £79.6 million of exceptional items. While a detailed explanation will have to await arrival of the accounts in Companies House, the charge related to impairment of tangible fixed assets – £44.8 million – and intangible assets, probably players, £34.8 million. The operating loss before exceptionals was £1.6 million.
Turnover was down £6.9 million year-on-year to £108.8 million. The club attributed this primarily to a reduction in its share of Premier League broadcast revenues.
Chinese businessman Tony Xia completed a £76 million takeover of the club last June.
At the time, it was reported that Xia would pay £52 million to buy Villa, as well as assuming a £24 million overdraft. He said he would contribute a further £60 million in operating costs.
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