Money

[littlemandefoe]

Do we have money to spend? All my mates tell me we have 0 money in the bank and that we could never afford a 30 mill+ player.

I'm trying to say that I reckon a lot of our money is saved up for a new stadium but their all saying 'if thats what you want to think'

Questions... can anyone answer them?

1. Do we have money in the bank? If so, how much for transfers?
2. Are we a financially secure club?
3. Do we need to sell to be able to buy big players?

Levy is a very good chairman and I know we're the 11th richest club in the world, right? Idk if that means anything.

I just want to know personally as well as get some firepower to reply to my friends claims!!!! :-|

 

[dontcallme]

We do have money. We have consistently been in the top twenty richest clubs in Europe for the last 15 years. We need to sell first because our squad is already at the 25 man maximum.

Financially we are very secure. But then that is partly connected to the fact that our wage budget compared to our turnover is quite low.

We could pay £30m for a player but a £30m player wants the wage to go with it. Our highest earner is currently on £70k a week and our wage bill is consistently more than £30m a year lower than Utd, Arsenal, Chelsea, Liverpool and now City.

If we offer the huge wage to a new signing then what does that say to our current players?

 

[akie]

I think that we are secure in our finances, Harry has said he would only go for a player who improves the team, so must be some money there, I think the fact we buy and sell for the best price available gives the impression we dont have much money

 

[Donki]

I remember a few years ago when the stadium plans were first unveiled in the media Levy said that the money used for the stadium project would not effect any transfer budget, I have no reson to doubt what he said.

The reason we aren't buying every window anymore is because our squad is pretty good and its going to take a VERY good player to walk into it. Yes there is the obvious problem of the striker situation but the 2 things I feel that are holding us back is firstly the squad size, and the ability to offer wages over £100,000 a week.

In short I believe there is money in the pot to buy but we are looking carefully where to invest it.

 

[sloth]

Do we have money to spend? All my mates tell me we have 0 money in the bank and that we could never afford a 30 mill+ player.

I'm trying to say that I reckon a lot of our money is saved up for a new stadium but their all saying 'if thats what you want to think'

Questions... can anyone answer them?

1. Do we have money in the bank? If so, how much for transfers?
2. Are we a financially secure club?
3. Do we need to sell to be able to buy big players?

Levy is a very good chairman and I know we're the 11th richest club in the world, right? Idk if that means anything.

I just want to know personally as well as get some firepower to reply to my friends claims!!!! :-|

Businesses don't really work like that LMD, if you have a surplus you either invest it or give it back to the shareholders. There will always be a small cash contingency, but that's it.

If we need more money to make an investment or to pay the bills we'll go to the investors or to the bank and look to secure a loan.

If the question is have we got money squirrelled away from last year's CL campaign, then the answer is no, we've spent it all. Last year we made a small loss, which means our expenditure slightly outstripped our income.

But if the question is have we money to spend on transfers then the answer is yes. It's just likely to be borrowed money which we invest in purchasing a player which then shows up on the Club's balance sheet as an asset.

In general borrowing to invest is no bad thing, it's what we all do when we buy a house. We take on a mortgage, but if we invested wisely in the end we'll make on profit on the investment.

I reckon the amount we're willing to spend would depend on the long-term value of the investment we're spending it on. Thus if Messi were to suddenly declare his undying love for Spurs and Barcelona were willing to sell him for £40m, we'd bite their hand off, but if another lesser player, say a Damiao, were offered us for £30m, we'd decide he was unaffordable.

Either way though, we'd be getting in debt to purchase them.

 

[Donki]

I think that we are secure in our finances, Harry has said he would only go for a player who improves the team, so must be some money there, I think the fact we buy and sell for the best price available gives the impression we dont have much money

Very true, take a look at big spending Liverpool........ oh yeah they are loaded just dont spend it very wisely. :grin:

 

[SNAFU_Clarke]

our wage bill is consistently more than £30m a year lower than Utd, Arsenal, Chelsea, Liverpool and now City.

whilst that is true, it's not giving the complete picture. in the last year where all figures are available, 2010, we spent £67m on wages. in 2011 our figure is closer to £90m. for comparison the other teams in the CL mix up spent the following amounts in 2010:

spurs - £67m

chelsea - £173m
man city - £133m
man utd - £132m
liverpool - £114m
arsenal - £111m

a sizeable gap, although a gap that is being bridged.

 

[littlemandefoe]

Thanks for the replies

 

[Maske2g]

The ITK suggests that Levy thinks we can sign a few top players to challenge for the title, but also cement our place in the Champ league next season, which is 40 M in the coffers.

Although it's probably bullshit, it's certainly a decent theory.

I'd personally snap 15M off Liverpools arm for Defoe. He'll be 30 this year, I don't see him having a top career into his 30's, not exactly a player that uses his experience and brain on the pitch.

 

[Gbspurs]

whilst that is true, it's not giving the complete picture. in the last year where all figures are available, 2010, we spent £67m on wages. in 2011 our figure is closer to £90m. for comparison the other teams in the CL mix up spent the following amounts in 2010:

spurs - £67m

chelsea - £173m
man city - £133m
man utd - £132m
liverpool - £114m
arsenal - £111m

a sizeable gap, although a gap that is being bridged.

To be fair I would imagine everyone's wages have increased since then.

 

[littlemandefoe]

I would love to see a list of the actual wages footballers are on! Anyone got a site?

 

[Rogmeister]

We do have money but unfortunately it's all going in to researching a robotic knee for our super centre back.

If it comes off he will be playing into his forties! Wohoo!

 

[deselina]

Spurs were after some very expensive players over the summer though.. don't know what happened since? Should Spurs qualify for the CL then there's definitely some money available I think.

 

[dontcallme]

I would love to see a list of the actual wages footballers are on! Anyone got a site?

Not sure about individual wages. The Guardian do a good annual analysis of club's finances.

Hopefully this link works - http://www.scribd.com/fullscreen/55741334

 

[SNAFU_Clarke]

To be fair I would imagine everyone's wages have increased since then.

City's definitely have. They are above Chelsea now, but not by a huge amount I wouldn't have thought. Chelsea's figures don't appear to be available. United and Arsenal are both paying more in total in 2011 than they did in 2010.

 

[miles_64]

Spurs were after some very expensive players over the summer though.. don't know what happened since? Should Spurs qualify for the CL then there's definitely some money available I think.

I love the supreme confidence followed by the backtracking :wink:

 

[Spursidol]

As others have said there is money available, however Spurs are run with very tight financial control (eg wages as a % of turnover). IMO one of the best analysis of Spurs finances is from The SWiss Ramble
http://swissramble.blogspot.com/search/label/Tottenham Hotspur

It is written by someone with a good financial background and is both lengthy and a 'heavy' read, but if you have time well worth it !

 

[littlemandefoe]

Was reading that article above a month or two ago and then read it again today. Interesting read for those who haven't read it. I find it a bit confusing because it contains those 'financial words' though!

 

[Graysonti]

Businesses don't really work like that LMD, if you have a surplus you either invest it or give it back to the shareholders. There will always be a small cash contingency, but that's it.

If we need more money to make an investment or to pay the bills we'll go to the investors or to the bank and look to secure a loan.

If the question is have we got money squirrelled away from last year's CL campaign, then the answer is no, we've spent it all. Last year we made a small loss, which means our expenditure slightly outstripped our income.

But if the question is have we money to spend on transfers then the answer is yes. It's just likely to be borrowed money which we invest in purchasing a player which then shows up on the Club's balance sheet as an asset.

In general borrowing to invest is no bad thing, it's what we all do when we buy a house. We take on a mortgage, but if we invested wisely in the end we'll make on profit on the investment.

I reckon the amount we're willing to spend would depend on the long-term value of the investment we're spending it on. Thus if Messi were to suddenly declare his undying love for Spurs and Barcelona were willing to sell him for £40m, we'd bite their hand off, but if another lesser player, say a Damiao, were offered us for £30m, we'd decide he was unaffordable.

Either way though, we'd be getting in debt to purchase them.

No. Cash and profit are two diff things. The expenditure you mention will contain non cash items ( prepayments, amort, dep).

You can be profitable but go out of business due to a lack of cash.

 

[sloth]

No. Cash and profit are two diff things. The expenditure you mention will contain non cash items ( prepayments, amort, dep).

You can be profitable but go out of business due to a lack of cash.

Just look at Peacocks!

But in the context of what the OP was asking, which was do we have dosh sloshing about with which to buy players, then the answer is no.

We do have credit lines - obviously - and as I said we'll have cash in UK and European banks, but we did not make a profit the year we played in the CL, because all the extra income was off-set by all the extra expenditure (mainly wages according to the accounts, which increased to £90m plus last year; hopefully mainly due to bonus').

If we want to buy players within our budget we have to generate additional income, of which selling players is one way, and/or cut expenditure - again getting all those players of the payroll last summer will have helped in the respect - or we have to take on some debt.

It's worth noting that the purchase of a £30m player on a 6 year contract, is capitalised, and so amortisation means only £5m of additional expenditure will be booked against our 2011/12 accounts and the same amount each year subsequent to that.

By the sounds of it though you know this stuff better than me - I use a book-keeper and accountant to do it for me and so have just kind of picked it up as I went along - so there may be errors in what I've said, but I think that's pretty much the gist, unless you can correct me?