Summer spending limited by transfer fees we owe

[Yid121]

Just saw this in the Grealish BBC article:

Spurs have long been linked with Grealish, but their summer outlay could be shackled by the more than £330m in unpaid transfer fees they owe, a considerable portion of which are due this summer.

This sounds like a crazy amount?! Surely we aren't spending any money this summer if that's true?

 

[Adam456]

The overall point might be that transfer fees owed will impact our ability to spend (as they reduce our physical cashflow and the club doesnt like to borrow except for infrastructure) but I seriously doubt that we owe £330m. Certainly not net of transfer fees owed to us. I think the reporter has made a mistake

I also suspect that there's a but of sandbagging going on from the club to reduce fans' expectations after the financial boost of qualifying for the CL

 

[Adam456]

FYI after a quick Google we can see that the net figure is £279m. Still higher than I thought. So yes we may struggle to buy without selling first/after

Stadium Debt and Transfer Spending Challenge Spurs’ Long-Term Balance

Leer esta noticia en OneFootball.

onefootball.com

It's worth pointing out that so long as you haven't paid stupidly over the odds for a particular player in fee or wages then this isn't necessarily as bad as it sounds as they should be a fairly liquid asset (letting players run down their contracts aside) and you can buy more players than you need and see which ones work

It's when you pay well over the odds that you create serious problems (NDM, Lo Celso etc.) and just proves that getting value out of transfers is very important

 

[qqq1]

Like clockwork.

 

[onthetwo]

Plus the win bonuses for the Europa victory, compensation to Ange and from what’s it sounds like the £10m for Frank?
Not like Levy at all!

 

[GutBucket]

I knew it would all go to shit once Donna Cullen left.

 

[bbunc]

This is a nothing burger. We spend about 100M per year and we try to spread the actual cash outlay over 4-5 years in most deals.

By definition we will always have 300-400M of transfer fees payable under that construct

 

[cockerel downunder]

This is a nothing burger. We spend about 100M per year and we try to spread the actual cash outlay over 4-5 years in most deals.

By definition we will always have 300-400M of transfer fees payable under that construct

That’s correct, probably only 20-30% of it is due for payment this year.

it does make it hard to do a big lump sum payment though, such as Eze release clause. You are kind of locked in to always doing the payment plan unless you can get a cash injection.

 

[Donki]

Most of the big 4-5 barring Liverpool owe more than £200-£250m in transfer fees, it’s just how player transfers work these days.

 

[DiscoD1882]

Amortisation yes we may owe that. But over a number of years.

 

[DogsOfWar]

I don't think this would be an issue.
Last season's budget would only include the 10 cup games we were guaranteed to play so the money from the extra 12 would be a surplus.
We're in CL football and have a ridiculously low wage bill so we will still have plenty of money to spend.

 

[Misfit]

Every club faces this issue to varying degrees. Only ENIC manages to sucker some people into eating reheated leftovers year after year because of it.

 

[Stamford]

United owe more and are spending. It's nothing and not an excuse. There needs to be a big spend this summer.

 

[carmeldevil]

That’s correct, probably only 20-30% of it is due for payment this year.

it does make it hard to do a big lump sum payment though, such as Eze release clause. You are kind of locked in to always doing the payment plan unless you can get a cash injection.

oh spare me about making it hard. They can find a way. Other clubs have no problem. Levy just like to make excuses

 

[RickyVilla]

Like clockwork.

 

[bbunc]

oh spare me about making it hard. They can find a way. Other clubs have no problem. Levy just like to make excuses

We do have a bit of a unique situation at our club where the guy who makes all the decisions is not the money guy but still owns 30% of the club.

levy doesn’t have big cash personally. So any cash lewis puts in dilutes levy immediately. He can’t fund pro rata. Which very much disincentivizes him from pushing for that sort of thing.

 

[carmeldevil]

We do have a bit of a unique situation at our club where the guy who makes all the decisions is not the money guy but still owns 30% of the club.

levy doesn’t have big cash personally. So any cash lewis puts in dilutes levy immediately. He can’t fund pro rata. Which very much disincentivizes him from pushing for that sort of thing.

Still excuses. I don't see Liverpool or Arsenal having problems. It's bullshit and you know it.

 

[fecka]

We always pay out fees over time and have had that business model for years. This isn’t that high of a number for a club our side and I highly doubt we’re in a situation where we need to sell to buy.
It’s just fear mongering to sell papers and clicks.

 

[pvg]

Over the past few transfer windows, we‘ve had a NET transfer outlay of 100m-150m in the summer and then another player or 2 in January (25m ish)

Can’t see that changing this season, although it might seem like less as Danso and Tel (if made permanent) would be included in this season’s budget.

 

[muppetman]

Fair fucks, is this actually a new reason why we are skint and can't spend?

I do like to see a bit of creativity . . .