Dean Smith expecting Aston Villa to comply with EFL financial rules

City rivals Blues were last week hit with a nine-point deduction for breaching the regulations, which restrict the financial losses permitted over a three-year period.

It has prompted speculation other Championship clubs, including Villa, might be at risk of exceeding those limits this season and face a similar sanction in the future.

Chief executive Christian Purslow has previously admitted P&S represents a ‘significant challenge’ but expected the club to remain within the boundaries. Smith believes that to still be the case.

He said: “I am led to believe we are fine with it (P&S). At my unveiling Christian spoke about it and said we want to comply and will comply.

"I think he spoke again two months later and reiterated the commitment to that. We are quite happy with where we are at. We are in very good hands with two superb owners and a chief executive who helped make the rules on profit and sustainability.

“They are quite happy and with that, I am happy.”

Under the rules, Villa are permitted total losses of £39million for the three seasons they have spent in the Championship to date.

Clubs across the EFL have recently had to submit to projections for the current financial year, along with accounts from the previous two seasons. The league will then determine if any are at risk of breaching the limits.

Villa, whether they win promotion to the Premier League or not, are poised for an overhaul of the playing staff in the summer as part of a long-term strategy to make the squad younger and cheaper.

A number of big earners, including midfielder Mile Jedinak, are out of contract and will be allowed to depart.