British media reports that Aston Villa are set to face punishment after breaching UEFA's financial regulations for the second consecutive year.
The media noted that Villa violated UEFA's Squad Cost Ratio (SCR) rule, which stipulates that clubs will face financial penalties if their spending on player salaries, transfer fees and agent commissions exceeds 70% of their revenue.
This rule essentially functions as a luxury tax. Villa was fined €6 million in July last year for exceeding the 80% threshold in 2024. UEFA subsequently lowered the 2025 limit to 70%, and Villa has struggled to comply with this standard.
However, Villa is not currently in breach of the settlement agreement reached with UEFA last year regarding loss issues. The agreement involved a €5 million fine, future loss targets and certain transfer restrictions. Violating the settlement agreement could lead to more severe sanctions, such as being banned from European competitions.
Villa is believed to have complied with the Premier League's Profit and Sustainability Rules (PSR), but this is largely due to the club being able to record the £55 million sale of its women's team to its parent company as income.
UEFA does not allow such related-party transactions to be declared as revenue. Club insiders stated that due to a significant drop in income from being relegated from the Champions League to the Europa League this season, the club did not attempt to include the income from the sale of the women's team in the data submitted to UEFA.
