Aston Villa fined £19.4m by Uefa for breaching squad-cost rulesAston Villa fined £19.4m by Uefa for breaching squad-cost rules

Aston Villa has received a fine of €22.5m (approximately £19.4m) from UEFA for a significant breach of its squad-cost rules. The club will initially pay €7.5m, with the remaining amount suspended, contingent on future compliance. This marks the second consecutive year Aston Villa has been sanctioned for exceeding the 70% squad cost ratio (SCR) cap.

The club also faces a restriction on registering new players for its Champions League squad list next season. A substantial portion of the fine, €15m (£12.9m), is suspended, dependent on the club continuing to significantly reduce its squad-cost ratio in 2026. This follows a suspended punishment issued last summer, where Aston Villa was fined €11m (£9.5m) with an additional €15m (£12.9m) conditional on compliance over a three-year period.

Chelsea and Newcastle United are among three other Premier League clubs that have also incurred financial penalties for breaching UEFA’s squad-cost regulations. Chelsea has been fined €3m (£2.6m), with €2m (£1.7m) of this amount suspended. Nottingham Forest must pay €2.5m (£2.2m).

Newcastle United’s Financial Settlements

Newcastle United has been fined €6m (£5.2m) by UEFA for breaching financial sustainability regulations. The club was found to have violated both the football earnings rule (FER) and squad cost rules (SCR), with each offence resulting in a €3m fine. An additional €7m is suspended, pending future compliance.

The club confirmed it has accepted a three-year settlement. This includes a €3m financial penalty, with a further €7m suspended. UEFA also determined that Newcastle will pay an additional €3m for breaching the 70% SCR target in calendar year 2025. Newcastle United stated they have worked closely with the Club Financial Control Body (CFCB) to resolve the matter and are committed to ongoing compliance.

Newcastle’s assessment period included their participation in the Champions League last season, requiring them to adhere to UEFA regulations despite not qualifying for European competition next season. UEFA’s regulations are stricter than the Premier League’s profitability and sustainability rules, which will be replaced by a version of SCR next season. UEFA’s SCR threshold for player spending is 70% of revenue, compared to 85% in the Premier League.

Impact of Regulations and Club Actions

The fines highlight the challenges clubs face in complying with differing financial rules across various competitions. UEFA reduced the squad-cost limit from 80% to 70% of a club’s income last season, making compliance more demanding. The Premier League has also introduced its own variation of squad-cost limits, which began this week.

Some clubs engaged in transactions involving infrastructure sales to directly linked companies or player sales to associated teams. While previously permissible under Premier League rules, these actions were not compliant with UEFA regulations. For instance, Chelsea sold Mathis Amougou to Strasbourg for £12m, and Aston Villa sold their women’s team. Strasbourg, a sister club to Chelsea, was also fined €25m (£21.5m) with €12m (£10.3m) suspended for reporting a squad-cost ratio above 70%.

Newcastle recorded a £34.7m profit after selling the leasehold to St James’ Park and adjacent land to PZ Holdings Limited, a subsidiary company. However, UEFA did not approve this sale for accounting purposes. Chelsea, which had been previously sanctioned, noted that UEFA recognized an improving trend in their spending and that the 70% threshold was only narrowly exceeded.

Source: bbc.co.uk

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By Kwame Ofori

Kwame follows politics and current affairs, with a focus on Accra and national government.