Aston Villa have been thrown into financial turmoil and face the threat of being served with a winding-up petition by HMRC, after the Championship club failed to pay a tax bill that was due last Friday. The news that Villa had missed a tax payment emerged on the same day that Keith Wyness, the chief executive, was suspended as a sense of crisis deepened at the Midlands club.
Aston Villa face task of keeping Jack Grealish after Wembley agony | Ian Malin Read more
Villa are currently working with HMRC to try to find a resolution to a problem that is likely to be solved in the short term but threatens to resurface in one way or another further down the line because of the wider financial issues at a club that has been operating beyond its means and was essentially gambling on returning to the Premier League.
It is understood that the outstanding HMRC tax bill is in the region of £4m. Even if Villa make that payment in the coming days – there are suggestions that HMRC will have their money by the end of the week – the feeling within the club is that another financial issue could be around the corner unless there is some sort of cash injection.
Tony Xia, Villa’s owner, is not short of money but moving funds out of China is not straightforward. The worry for Villa’s supporters will be that the unpaid tax bill is a sign of things to come, so much so that the threat of administration, which is seen as the worst-case scenario for the club, cannot be dismissed.
The decision to suspend Wyness is not directly linked to the missed tax payment and says more about the chief executive’s relationship with Xia, the billionaire Chinese businessman who bought Villa two years ago, and the way in which things have unravelled during talks between the pair since the play-off final defeat by Fulham at Wembley less than a fortnight ago.
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In a frank statement released last week Xia warned that Villa “will face severe Financial Fair Play challenges next season”. The club’s owner went on to say that Villa had been “heavily investing for the past two seasons” but that defeat against Fulham “means that we need to change a lot of things”.
Although there has been speculation about fresh investment at Villa via new ownership, no takeover is imminent and everything points to a hugely challenging summer ahead, with the departure of Jack Grealish, the club’s prize asset, looking increasingly inevitable.
Aston Villa have been plunged into turmoil after being hit with a £4.2m tax bill by HMRC, while the Championship club have also suspended chief executive Keith Wyness.
Villa are under pressure to make the payment within seven days or face a winding-up order, while the prospect of administration cannot be completely discounted as the club count the cost of missing out on promotion.
It is understood Villa were late making the regular tax payment last Friday and though club sources insist the issue will be resolved this week, the West Midlanders are now gripped in a financial crisis.
Dr Tony Xia, the owner and chairman, is alleged to be struggling with cash-flow issues in China, which restricts the distribution of money leaving the country. There is no suggestion that Xia is struggling financially.
Xia told Villa insiders on Monday that the club is not for sale, yet Steve Bruce’s failure to beat Fulham in the Championship play-off final was always likely to have severe ramifications.
Xia held crisis talks with Wyness on Tuesday morning and opted to suspend the former Everton chief executive with immediate effect.
Keith Wyness has previously held the role of chief executive at Aberdeen and Everton
Championship side Aston Villa have suspended chief executive Keith Wyness.
The announcement came as it emerged Villa are working with HM Revenue & Customs to resolve an unpaid tax bill, although that is in no way connected to Wyness' suspension.
It is understood that the club will pay the outstanding amount within the next 48 hours.
Villa said that owner and chairman Dr Tony Xia will "assume the [chief executive] role until further notice".
Wyness joined Villa in June 2016 shortly after the Chinese took over at Villa Park.
Villa lost 1-0 to Fulham in the play-off final at Wembley on 26 May, meaning they will spend a third consecutive season in the second tier.
Analysis
Mark Regan, Aston Villa reporter for BBC WM 95.6
This news will come as a shock to Aston Villa fans, who are still coming to terms with the play-off final defeat. It will also do little to calm fears that the club has entered a deeply troubling financial situation after missing out on the windfall that would have come with promotion.
The club's owner Dr Tony Xia has previously stated that Villa face "severe" challenges under financial fair play rules.
In short, Villa need a stabilising influence and they need it quickly with the squad needing drastic surgery to prepare for a third season in the Championship. Tuesday's news will feel like salt into a wound that's had no time to heal.
Aston Villa have suspended their chief executive Keith Wyness amid reports that the club have been told they will be served a winding-up order by HMRC should they not rectify a missed tax payment within the next week.
Villa, who lost to Fulham in the Championship play-off final at Wembley last month, missed a tax payment, according to Sky News city editor Mark Kleinman.
He tweeted: “Exclusive: Aston Villa Football Club suspends CEO Keith Wyness less than a fortnight after Championship play-off final defeat and amid suggestions that HMRC has served a winding-up order against Villa, one of England’s oldest professional football clubs, for missing tax payment.
“Some more clarity on Aston Villa FC situation: the club missed a tax payment last Friday, and has been given a period (which I understand to be a week) by HMRC to make the payment or face a winding-up order.”
The club’s owner and chairman Tony Xia has assumed Wyness’s responsibilities, and Villa have said they will not comment further.
HMRC has been contacted for comment.
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