Aston Villa's losses rise

Increasing losses mean more bad news for Villa after a tough season

Aston Villa has sunk deeper into the red, reporting widening losses of almost £12m.

The team suffered a disappointing season, finishing 16th in the Premiership, failing to build a run in the FA Cup and seeing the resignation of manager Graham Taylor.

The lack of success contributed to the pre-tax loss for the year to May of £11.6m, up from a deficit of £400,000 last year.

"Aston Villa continues to operate within its resources and this has made the challenge of competing regularly for honours, but remaining financially stable extremely difficult," said chairman Doug Ellis.

Tough year

The team failed to score in a dormant transfer market - with player trading profits slumping to £1.9m from £9.1m.

Villa's turnover also fell from £46.7m to £45.4m, while operating losses before player sales widened to £13.5m from £9.6m in 2002.

Mr Ellis added: "I was disappointed in the playing performance of the first team last season, but nevertheless believe that we continue to improve the infrastructure at the club and believe that we can improve results substantially, on and off the pitch."

Average attendances were up slightly, while season ticket sales rose to 20,892 from 18,957.

Takeover rumours

Off the pitch there was also continued growth in conference, banqueting and catering income, as well as other commercial areas "not related to playing matters".

The club also aims to press on with plans to develop the Aston Villa Leisure Centre and has received planning permission to build a hotel.

The chairman also tackled takeover rumours that emerged last month, believed to involve an approach from Venezuelan millionaire Gustavo Cisneros.

Mr Ellis said: "These calls were speculative in nature and no further details have become available."