Villa to Lose FxPro Sponsor, Record Annual £37m Loss

February 28, 2011 by
Filed under: Aston Villa 

Please do not take this as me being down beat about the club after a fantastic high-point in the 4-1 win at the weekend, just reporting the recent revelations that FxPro have decided to make use of an apparent clause in the record contract agreed last summer, to pull out of the affiliation early, despite staying on with Fulham. Also the club’s holding company revealed the annual figures for the season ending 2010 over the weekend, posting a £37m loss. However, don’t fear too much as this number has decreased from £46.2m the year previous. The recent figures do not taken into account this seasons transfer dealings, with the Darren Bent deal representing a significant hit financially, but moves away for the likes of Davies, Sidwell and Carew alleviating the club’s wage bill. For a full report on FxPro’s decision and the financial details released by holding company Reform Acquisitions Ltd.

Reports suggested towards the end of last week that Villa were set to see their record shirt sponsorship deal with Russian-owned currency traders FxPro, withdrawn after just one season.

Sources from the Daily Mail claimed that the company had an option to do this upon signing three-year deals with both Villa and Barclays Premier League rivals Fulham.

The newspaper stated that FxPro have continued their affiliation with Fulham and sources have touted that the London club agreed to a decrease in their £3.5m annual sponsorship in order to ensure this.

Sources close to the Midlands club revealed that the company attempted to do the same with the Villa deal after the club had disappointed the firms expectations this season, but the club refused to do so.

Aston Villa chief General Charles Krulak, right hand man to owner Randy Lerner confirmed the decision, stating;

“This sponsorship issue (the end of contract with FX Pro) took place awhile back. Not sure why the papers just picked up on it. It is probably not a good idea to go into what has transpired other than to say that we will be paid throughout this season and that we already have sponsorships on the table.”

In other news, the clubs accounts were released this weekend from holding company Reform Acquisitions Ltd. revealing a £37m loss from last year.

Despite hefty losses, this figure is down from the year previous when the club made an annual loss of £46.2m.

Key figures from the report included a turnover increase from £84m to £90m due to match receipts being £2m higher, media – £2.5m higher and ommercial £2.4m higher

Operating expenses increased from £105m to £111m and a loss of £30m was made due to player transactions, but perhaps most worryingly for the club bank loans increased from £9m to £20m.

Lerner’s abundant need to reduce the club’s wage bill was backed by the relevant figures which revealed that total wage costs amounted to £79m (including pension and social security costs) a rise of £9m from the previous year.

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Comments

2 Comments on Villa to Lose FxPro Sponsor, Record Annual £37m Loss

  1. Ads on Mon, 28th Feb 2011 13:45
  2. Don’t worry about the Bent deal. As the Milner money was not counted in those figures either!

  3. Paul Messenger on Mon, 28th Feb 2011 21:26
  4. The £37m loss could have been significantly lower if someone at the club had not been crazy enough to sanction the Stephen Ireland deal. We had no manager at the time and yet we still bring in an £8m player There was always the risk that the incoming manager wouldn’t take to Ireland which we all know is now the case. If Man City wanted Milner that much they would have coughed up the entire £24m fee, it’s not as if they hadn’t got the money was it?
    Yes this was a crazy waste of money plus wages.

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