Aston Villa £11m off target

PREMIERSHIP club Aston Villa,which has been the subject of takeover speculation, plunged £11.6m into the red in the year to 31 May, against a £350,000 deficit last time.

Villa had a disappointing season, finishing in 16th in the 20-team Premier League, just above the relegation zone - its lowest position since 1994/95.

Chairman Doug Ellis, who owns 32% of Villa's equity, said: 'The financial difficulties that I forecast in my previous reports regarding excessive playing costs has hit many clubs hard.

'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.'

On July 14 Ellis announced he had received 'unsolicited approaches by telephone' from intermediaries representing unidentified suitors. 'These calls were speculative in nature and no further details have become available,' said Ellis.

Reports had linked Gustavo Cisneros, a Venezualan who is reportedly one of Latin America's richest men, with a bid.

A slump in profits from player trading had a major impact on the club's bottom line. Last year the club made £9m in the transfer market. This time the figure was just £1.9m. Player salary costs rose 6% - an increase of almost £3m.

Average attendances at the club's Villa Park stadium increased from 35,012 to 35,081. However, the figure is still well below the ground's capacity of 43,000. Season ticket sales increased from 18,957 to 20,892.

The disappointing performance on the pitch caused reductions in the merit award element of broadcast income and other match related income.

However, Villa said it aims to returns to profitability in 2004/05 'at which stage the payment of dividends would be reconsidered'.

In May team manager Graham Taylor, the former England boss, resigned and was succeeded by David O'Leary, the former Leeds manager.