DJ THE SKEPTIC: All Over For Aston Villa Shares?

LONDON (Dow Jones)--Aston Villa's match performance last season was bad enough, but that's nothing compared with the Birmingham-based soccer club's full-year financial results.

Revenue down, a pretax loss, and as for a dividend, forget it.

That's the way of many U.K. football clubs today. Apart from the top half-dozen, able to enjoy massive additional TV revenue, this is as good as it gets.

So it's probably fitting that that Aston Villa's days on the stock market are surely numbered.

Investors have had a rough deal over the years. They were promised much when the club listed in 1997 at GBP11 a share, but all they have to show is a loss on their investment close to 50%.

The good news is that longtime Chairman Doug Ellis says discussions on a proposed bid for the company are continuing. Within just weeks, Aston Villa's few remaining investors could finally be put out of their misery - a factor surely already priced into the shares.

At the peak of the trend for listing clubs in the late 1990s, there were 17 on the main London exchange. But the practice was a disaster for shareholders.

Not only are clubs high risk, but revenues are mostly insignificant and few have managed to report profits.

Aston Villa has been no exception. Revenue last year was just GBP49 million compared with GBP51.6 million a year earlier. Already out-of-control payroll costs jumped another 16% and the loss before tax jumped to GBP8.2 million from GBP2.6 million.

If a normal company produced results like these, investors would be clamoring for a director's head. Though with Ellis owning 39% of the shares and having access to another 12%, this was always a one-man show.

The latest round of bid talks aimed at putting the ailing club out of its misery isn't the first. Villa has been up for sale before and there have been various unsuccessful offers.

This time, though, there are high hopes that a deal is near.

Fans are already delighted about the appointment of Martin O'Neill as manager a few days ago.

O'Neill will know that with net debt of GBP12.1 million and shareholders' funds of just GBP27 million, there isn't much financial scope for funding new players. That could all change if the club is sold.

When that day comes, there will no doubt be cheers at the Villa Park ground. Aston Villa's long-suffering investors are likely to be celebrating, too.