Aston Villa F.C. - Ownership

Ownership

The first shares in the club were issued towards the end of the 19th century as a result of legislation that was intended to codify the growing numbers of professional teams and players in the Association Football leagues. FA teams were required to distribute shares to investors as a way of facilitating trading among the teams without implicating the FA itself. This trading continued for much of the 20th century until Ellis started buying up many of the shares in the 1960s. He was chairman and substantial shareholder of "Aston Villa F.C." from 1968–1975 and the majority shareholder from 1982–2006. The club was floated on the London Stock Exchange (LSE) in 1996, and the share price fluctuated in the ten years after the flotation. In 2006 it was announced that several consortia and individuals were considering bids for Aston Villa.

On 14 August 2006, it was confirmed that Randy Lerner, owner of the National Football League's Cleveland Browns, had reached an agreement of £62.6 million with Aston Villa for a takeover of the club. A statement released on 25 August to the LSE announced that Lerner had secured 59.69% of Villa shares, making him the majority shareholder. He also appointed himself Chairman of the club. In Ellis's last year in charge Villa lost £8.2m before tax, compared with a £3m profit the previous year, and income had fallen from £51.6m to £49m. Lerner took full control on 18 September, as he had 89.69% of the shares. On 19 September 2006, Ellis and his board resigned to be replaced with a new board headed by Lerner. Lerner installed Charles Krulak as a non-executive director and Ellis was awarded the honorary position of Chairman Emeritus.