A sustained period of loss-making has continued at Aston Villa after the club revealed it was £52 million in the red last year.
The club, which has posted a cumulative loss of £162 million in the past four years, saw the deficit rise by more than £34 million in the year to May 31, 2013.
Owner Randy Lerner has waived £90.1 million of loans to vastly reduce the club’s debt load – they were converted to equity in December 2013.
READ MORE: {}
The club said this move would accelerate the process towards long-term stability and financial self-sufficiency, after a period that saw a loss of £38 million in 2010, £54 million in 2011 and £17.7 million in 2012.
Turnover for the year ended May 31, 2013 was up £3.3 million to £83.7 million, driven by higher average league attendance and a semi-final place in the Capital One Cup.
Chief financial officer Robin Russell said the club had made strides to comply with the Financial Fair Play requirements – stopping clubs from spending vastly more than they bring in.
Mr Russell said: “The 2012-13 accounts effectively close a chapter on a period of heavy losses.
“As we near the end of the 2013-14 season, the club is financially self-sufficient, compliant with both UEFA’s and the Premier League’s Financial Fair Play requirements and we look forward to a period of continued growth and progress on and off the pitch.”
Most Read
Villa’s operating loss before exceptional items fell by £9.5 million to £42.6 million in the season.
Mr Lerner, who inherited the MBNA credit card company and then sold it to Bank of America, bought Villa in 2006 from the former owners and the then chairman, Doug Ellis, and has since bankrolled years of losses.
The rise in losses came as less money was recouped from outgoing player transfers. In the last financial year there was income from selling Ashley Young to Manchester United for £17 million and Stewart Downing for £20 milion to Liverpool.
There was a reduction in operating expenses but exceptional charges increased by £2.4 million to £8.3 million, including a revaluation of the squad.
Accounts filed on Companies House also shows there was no repeat of the one-off impact in the 2012 financial year of Mr Lerner waiving interest on loans made to the club, which shortened losses last year.