Christian Purslow: Aston Villa lost over £56m during Covid-19 pandemic

The club has revealed the figure in their annual accounts, which show they lost £38million in the last financial year, a figure down from the £99m losses suffered in the previous financial year.

In their annual accounts filed at Companies House for the year to May 31, 2021, the club's owner NSWE UK revealed the club suffered a hit of more than £21m to match-day revenues over the coronavirus-hit seasons of 2019-20 and 2020-21 when games were played behind closed doors.

More than £14m was lost in rebates paid to the Premier League for Covid-related broadcasting revenues and £5m was lost due to the reduction of sponsorship. The club also suffered financial hits with the loss of a planned England international at Villa Park and the cancellation of a planned concert at the ground.

The report by Villa chief executive Christian Purslow also shows the club estimates the lost nearly £9m in the reduction of the value of players due to the effects of Covid on the transfer market.

The report states: "The directors believe that the club was impacted by this Covid-19 related transfer market suppression.

"Firstly the club either sold or terminated the contracts of five players during the summer 2020 transfer window and estimate sales proceeds generated to be £8.945m less than pre-Covid-19 mid-market values.

"This estimate is supported by the sale of one player who had been loaned out during the 2019-20 season with the loanee club agreeing a pre-Covid-19 purchase option price.

"Post Covid-19, this option price was re-negotiated down by £1.4m.

"Secondly the club had targeted the disposal of two further players during the summer 2020 transfer window, both of whom were considered surplus to requirements following new acquisitions.

"Directors believe that the Covid-19 impact on the transfer market prevented the club from completing the sale of these players resulting in lost payroll savings, amortisation savings and profit of disposals totalling £4.464m."

Elsewhere, the report shows revenue increased from £36million to £71million, mainly due to higher income from broadcasting.

Turnover for the last financial year amounted to £183m, up from £112m in 2020.

The report adds: "The key risk for any football club is that of poor on-field results.

"The board mitigates risks by providing manager with first-class training facilities, appropriate transfer budgets and generous support to the academy.

"The board is focused on providing the necessary investment in the playing squad, operational functions and infrastructure of the club whilst recognising that it must remain compliant with Premier League profit and sustainability rules."