Aston Villa Facing Fresh Financial Problems as Sacked Chief Executive Takes Club to Court

Former Aston Villa chief executive Keith Wyness has been reported to be suing the club for 'constructive dismissal' following his departure from the club in the wake of the threat of a winding-up order from HMRC over an unpaid tax bill.

Wyness was initially suspended and replaced as chief executive by owner Tony Xia in a hands on move from the Chinese businessman. An agreement with the tax authority was later reached.

But a story from the Daily Telegraph explains that Wyness has actually now left the club completely and is taking his former employers to court over the circumstances of his exit.

It is said that Villa could be liable to pay Wyness £6m in compensation should he win his case.

Wyness, who was hired by Xia upon his takeover of Villa from former owner Randy Lerner in 2016, apparently clashed with the billionaire over his consulting of insolvency experts.

With Villa's finances stretched to the limit and no Premier League windfall after a failed promotion bid, the threat of potential administration loomed over Villa Park.

The Football League's financial fair play rules also means that Villa must cut costs to fall in line with the regulations. It is not as easy as Xia simply ploughing his own fortune into the club.

It was reported earlier this month that American businessman Peter B. Freund was preparing a possible £75m takeover bid when it looked as though Xia might struggle to come up with the cash to fend off HMRC. In the end, the money was found to keep the wolves from the door.

It has been established through media reports on the subject that it is not Xia's wish to sell the club unless he has no other options available to him.