Aston Villa - Villa Not Insolvent - Technically Or Any Other Way
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Villa Not Insolvent - Technically Or Any Other Way

There was an article on the fourfourtwo site this morning questionning whether Villa, amongst others, were technically insolvent or not.

Usually I'd have done an article without getting the facts straight but this time I've been far more sensible and suprisingly for me, pro-active! There is a thread in our forum Is Aston Villa Insolvent?? >> Click Here (adult language) where the posts mostly rubbish the report, quite rightly!

I've spoken to sources at the club (hark at her) today and to be fair was told that the club can't comment on total rubbish and this is total rubbish.

Villa is nowhere near insolvent, either technically or otherwise

It seems strange in this list you have some clubs who are so obviously on the rocks and needing to sell, as well as some piled sky high with debt, so much so that the fans have protested against their new owners, and yet you get a great club with a great owner like Randy Lerner who has brought NO debt at all to us, and they come out with this to worry fans.

A loose definition of being insolvent is not being able to meet your liabilities or having negative equity. We don't have negative equity as can be seen in the company accounts which are on public record. May 07 we had net assets of £35.1m and from what I can gather they'll have risen, not dropped for the 2008 accounts. We are also more than able to meet all liabilities, what do the people who make these lists up think is done with the tv money for a start, let alone the deep pockets of Randy? And if we were in financial trouble, do they really think we'd give away free sponsorship to the charity hospice Acorns? (

To re-assure I've spoken with an accountant also today, he pointed out, exactly the same as all other companies, accounts have to be approved by auditors.

Villa are in fine shape, in good hands and on the march upwards.

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The Journalist

Writer: J P Fear Mail feedback, articles or suggestions

Date:Wednesday January 7 2009

Time: 5:56PM

Your Comments (oldest first)

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Most important part of that article is the link to Acorns...! Oh and you can play the little video as well, give me a dime if you do!
The Fear
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07/01/2009 18:01:00

Need to be a bit careful here as a couple of statements in the article are off. 1) "And if we were in financial trouble" - nobody is saying Villa are in financial trouble, this is a "technical" thing, 2) "...the deep pockets of Randy" - totally irrelevant to the report, Randy's own value means nothing in relation to this.

I do find the figures slightly surprising, but the study was compiled by one of the leading organisations in their field in the world, and they would be very careful to ensure they didn't get any negative publicity out of it.
The Real Neil
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07/01/2009 18:08:00

been very careful Neil, got my facts straight today, we aren't in any way near insolvency technically or otherwise.
The Fear
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07/01/2009 18:11:00

Oh and the article is a worry to fans, it is suggesting financial problems and not being well run. Agree re: the report that the deep pockets don't show up but they are important for the fans piece of mind as a winner like RL would not buy the club and then allow it to run into trouble. Some of the clubs in their report above us are on the verge of disaster and as you know, two at least are ladened with their new owners debts.
The Fear
Report Abuse
07/01/2009 18:13:00

True. But let's not forget Randy acquired 60million in debt, of sorts, when he raised the funds to acquire Villa. If he were to be run over by a bus tomorrow, would the club have to repay his family's trust that cash or not?
The Real Neil
Report Abuse
07/01/2009 18:19:00

My understanding is there is no debt leveraged on the club Neil. Not that I'm in a position or should speculate on the inner workings of the Trusts etc. But I'd bet my house on that. Think I'll leave it at that sir!
The Fear
Report Abuse
07/01/2009 18:22:00

What a load of Tosh. Manure should be much lower and Liverpool will possibly have to pay their first instalment on their loan next month. How do they come to these scores anyway????
Report Abuse
07/01/2009 18:59:00

In this economic crisis, anything is possible. And i doubt the club would announce it even if they were. Lets just see what happens........
Report Abuse
07/01/2009 19:08:00

I agree that a reputable company couldnt publish figures that they have plucked out of thin air but as the Americans mortgaged Anfield to buy Liverpool who are now saddled with massive debt so something doesnt add up. Funnily enough though I was talking the other day about or seemingly endless pot of money and where its actually all coming from. Transfer fees are higher and you can bet our wage bill has increased once again so the extra TV revenue will be minimal when those two figures are taken in to account. A big hinderence for us is that we only sell out 50% of games at home and we'll never have the full backing of fans to increase the capacity to compete financially with Man U or Arsenal who rake it on on gate receipts and obviously their worldwide brand.
Report Abuse
07/01/2009 19:16:00

All of our money has come from RL and is more than likely loaned ot the club at a very low APR, but not as low as the rate RL has obtained when borrowing the money. RL own MBNA, which is a bank and thus has the ability to loan money to him for probably next to nothing. That is how RL will make his money from Villa so that he can recoup his investment without taking money from the club. If RL walked away tomorrow and an uber rich investor came in we would struggle to operate. We certainly would not have any money to purchase players. I doubt RL will and that is why we are only technically insolvent, in the same way that Chelsea, Man Yoo, Liverpool and Man City are.
Report Abuse
07/01/2009 19:52:00

Saying that (and probably regretting it), having looked at the table I think it's complete tosh considering the clubs around us in it.
Report Abuse
07/01/2009 19:53:00

Randy has no shares in MBNA, he sold them a long time ago.
Report Abuse
07/01/2009 20:19:00

We will start to get bigger gates the more successful we are. We can't compete with other clubs (Man Yoo, Arse, etc) as VP will only currently hold 42,600 approx unless we make VP bigger. Success, growth and ground improvements are at a cost to the club. A cost which is more bearable if we are successful. These reports just worry fans for no reason. Of course during this credit crunch we are all tightening up our spends and borrowing but with RL at the healm i feel we have one of the best owners in the EPL at keeping us afloat and viable. Are we to believe all that we read?
holte ender 1969
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07/01/2009 20:20:00

Our brand is on the up and will increase the more we win. Arsenal are heavily in debt for the Emirates, we aren't for Villa Park. If they don't make the top four, they have problems, we are running a steady ship. Man Utd are a world wide brand but the Glaziers have massive debts leveraged on them. It isn't about the club announcing it YJ, it is about what has to go on the public record accounts wise, they can't say the assets are 31m or whatever if they aren't!
The Fear
Report Abuse
07/01/2009 20:37:00

Screw the crappy "table". Up the villa. In Randy and MON we trust.
Report Abuse
07/01/2009 20:59:00

The futures bright, the futures claret n blue. UTV.
holte ender 1969
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07/01/2009 21:39:00

The whole bankrupt story is like the video clip RUBBISH. If thats the best 4-4-2 and NOKIA can come up with were in for a long season.
Report Abuse
08/01/2009 07:03:00

Villa HAVE spent a lot of money, and I bet it's not Mr Lerner's private fund. I have wondered about all this. PS That guy in the Nokia Video is VERY dodgy looking.
Report Abuse
08/01/2009 16:06:00

It makes for very interesting reading, if only to give you the opportunity to ponder and evaluate 'what if'. Its a little over my head to be honest, and while things currently appear to be hunky-dorey, I never allow myself to start thinking that the situation couldn't change in the blink of an eye.
Report Abuse
08/01/2009 21:20:00


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