ASTON VILLA & PSR

Thank you so much to Matt for coming on follow Matt @mattburton72 on X/Twitter

[@nicholasfoskett7729]

Great podcast and very informative. Would like to see Matt back again, even just for his opinion in general. Seems measured and articulate! Keep it up Neil!

[@dobbiewilliams334]

You’ll be pleased to know I’ll be adding about 5 views myself to understand that. Definitely not a podcast you can take in while having any distractions. Great content as usual.

[@rachelinsull-lewis4545]

Really good podcast. Thank you soo much gents UTV 💜💙

[@RyanHeath-ho9qp]

Thoroughly enjoyed that as an accountant myself, please get Matt on again if possible

[@joebees21]

This gave me ptsd flashbacks to my uni days sitting in an accountancy module lecture.

[@ForTheLoveofPaulMcGrathPodcast]

I’ll get that if the North Stand development goes ahead. Flashbacks to Building regs from my time in architecture 😂

[@guitarmatb123]

😂 sorry! Always reminds of that Monty Python sketch with the boring accountant!! I always wanted to be a Lion tamer 😂😂

[@joebees21]

@@guitarmatb123 😂😂no need to apologise mate I actually thought you did a great job at explaining everything. I too went to Aston Uni so maybe if I'd had you as my lecturer then I'd have been able to actually learn something 😂

[@barrydiablo1975]

Fantastic podcast Neil 👊🏻 real eye opener to the situation

[@carlthomas7354]

Really good podcast. I was baffled by the Luiz deal but now it makes more sense.

[@ciaranwalshe_vocalist]

Fantastic podcast, so informative and utterly fascinating. I feel like I finally understand the bigger picture now, where there were gaps in my knowledge before. Definitely get Matt back on the podcast, I would love some more deep dives. He really knows his stuff and you guys have a great rapport x

[@itsginofelino]

Very informative, thanks lads

[@neilorme1637]

Excellent interview guys thanks very much... so interesting I almost regret not becoming an accountant when I left school! Accounting gets a bad rap eh, seems really interesting.... my body would have thanked me for it at 54 I know that rather than becoming an electrician 😁 UTV.

[@PatrickJScahill]

Sitting at a desk all day, has its impacts on the body too Neil. Alot to be said for a good active job.

[@neilorme1637]

@@PatrickJScahill I totally agree. If I was honest I'd consider myself to be in pretty good shape but think if I had indeed sat at a desk for 40 years I'd be far less capable physically.

[@chrisphammond]

Have had a few chats with Matt on Twitter, top guy and well worth a follow

[@SteveBerryUTV]

Great explanation guys.

[@seangreene8893]

Really insightful podcast this one. Congrats. Btw: Is everyone in the Midlands called Matt?

[@lummix6]

Excellent really interesting lads, thanks

[@junior-v3h8o]

my god ! ,enjoyed it all the same utv

[@WouterWouters]

wow i understand psr now

[@michellemaynard6808]

UTV💜💙💜

[@MrMonkeyHat]

Would the 90% wages include paying off Slippy G and his team? As that would (in theory) make that number come down

[@barryrobertson9963]

So Emery making the likes of McGinn and youri better increases their amortisation? Or is it actual money that exchanged hands over that period of time of contract?

[@guitarmatb123]

The latter.

[@Hammerschool]

Is football even worth watching anymore???

[@britishmick]

Agree totally… life’s just got too serious… no fun anymore, all business

[@conradjohn5677]

Like watching competitive Monopoly at this point.

[@carlthomas7354]

😂​@@conradjohn5677

[@davidreuben7675]

For me it’s the teams that are carrying huge debts that should be jumped on

[@MrMonkeyHat]

Would the 90% wages include paying off Slippy G and his team? As that would (in theory) make that percentage come down

[@guitarmatb123]

I didn’t particularly mention it on the Podcast but I think the SG payoff and Emery + staff fees are in the “Other Costs” as exceptional costs which jumped by about £20m in 22/23. I’m pretty sure that jump will be through those costs.

[@ozgerm]

The perfect PSR for dummies. Great video. Thanks guys UTV

[@robmilbs1718]

Really insightful podcast 👍

[@markyNUFC80]

Toon fan here, but I have been following you guys with interest over the last season or so. Great vid, which I think some of my own fans should be looking at with interest. Well done

[@markwain2214]

I feel for the youth team players who dream of making it big for their hometown club, work hard to make it to the first team, but find themselves becoming the selling asset that will bring in the most profit for psr purposes. How can that be fair for them??

[@mattc7561]

I hope this comes across the right way. But you might want to look at shorter pods. An hour on PSR is A LOT

[@PatrickJScahill]

Player trades are a way of giving profits to both teams and all the cats and dogs on the street know this. Dougie might be worth 50m, McKennie 20m and Junior 10m. But if you consider Juves history(Arthur) and Mochi, a good old school rogue would consider you can inflate the prices just a little. Dougie can be valued at 65m, McKennie can then be valued at 30m instead of 20m and Jr at 15m instead of 10m plus cash. Who can honestly argue valuations as long as its reasonable look at the City sponsorship deal as an example. That gives Villa a ~65m profit and Juve close to ~45m profit instead of 50m and 30m rsly. The only issue is potential cash flow issue of the City sell on clause.

[@ForTheLoveofPaulMcGrathPodcast]

I’ve heard the City sell on is not a thing. No idea of that is true or not just I’ve seen talk of the sell on recently. Who knows 😀

[@PatrickJScahill]

@@ForTheLoveofPaulMcGrathPodcast that would make even more sense. I speculate Boley will be up to the same tricks. If Duran goes to Chelsea for 50m, I'd reckon Gallagher will go the opposite direction for 70m odd. Most would say Duran is worth ~30m and Gallagher would be worth ~50m.

[@Hero-of-Midgar]

It still kicks the can down the road though if you pay more for players due to amortisation. But does help with immediate cash flow yes.

[@PatrickJScahill]

@@Hero-of-Midgar IMO and to my knowledge the sudden increase of swap deals has very little to do with cash flow. For Villa at least albeit perhaps for Juve. Their owners are wealthy enough to pump the funds in at any time for a few purchases. They can just issue share capital to themselves and pump cash in at any time. The club can be geared/leveraged at this stage for circa 600m. IMO swap deals are more about squeezing a little more profit from the sale of Luiz and that of his counterparts McKennie and Junior into the profit and loss for the June year end before we are at the mercy of the Premier League. It wasn't mentioned above but that is why the club extended the year end by a month to give themselves an opportunity to raise the estimated ~70m needed. We don't have 3 months to raise the estimated 70m we have 16 days. Yes the amortization will hit in the coming years in the case of inflated prices but it will keep the wolf from the door this year and give the team time to build the Clubs organic Revenue streams. If they only get 50m from Luiz, they will have to perhaps sell more players this month and that might not materialize or might force the clubs hand to sell a Duran for say £30m instead of his value of say £40-50m.

[@jeffrybungle2502]

Come on lads do a podcast, New Villa kit...Onona, the good Onana aswell

[@davidreuben7675]

Imo there must be an easier way to run football, it should be a priority of the top brass to find it

[@conorbyrne8074]

A factor in the wages was paying off Gerrard and his staff. We paid up 2.5 years. That's non recurring so will drop off. I do agree we need to lower overall wage bill by lowering overall squad age (younger players are on much lower wages). I also believe players have bonuses based on European Qualification, no specifically which competition they Qualify for.

[@guitarmatb123]

Payoffs are a factor but I believe that is in the Administrative Expenses section not in the wages. Your other point about bonuses ans European qualification could be true but we won’t know that until next years accounts come out.

[@conorbyrne8074]

@@guitarmatb123 In the 23/24 accounts however those one off costs (~20m in total buying Emery out and paying Gerrard and staff off (Gerrard alone 12.5m) will be gone. In terms of bonuses, having read the Athletic Article (I think 2 years ago) about player bonuses at Villa, I am led to believe players get a share of prize money above 14th place which accounts for some of the wage increases as we went from 14th to 7th.

[@conorbyrne8074]

@@guitarmatb123 On players bonuses for European competition. I believe the primary component is additional workload required by the player. Essentially more football matches = more compensation. This is why clubs like Spurs hate the idea of getting into Conference League because the majority of the additional wages is additional games not quality of the competition. Further to that the Champions League bonuses are more significant with Big clubs who expect to be there year in year out. Like Man United, who offer big wages on expectation of CL income. It's then more a "cutting players salaries" if they fail to meet the clubs minimum expectations. What is unclear to me is if the increased salaries are paid in the year of the competition. So we would expect to have paid higher wages to players in 23/24 accounts due to the additional games required from CL. We will see that in March when next accounts are released.

[@guitarmatb123]

Yep £20m is the estimate I have in my model for 23/24 for Emery/Gerrard so those will come out as non-recurring costs. As for the extra appearance bonuses that’s a really good point but slightly concerning as 22/23 we saved by getting knocked out of cups nice and early!! 😂 You’re right in that appearance bonuses will be higher in 23/24 as well as the bonus for getting into Europe. Hmmm plenty to ponder!! Thanks for those comments though. Really useful 👍

[@michaelhuggins8513]

Hit the like