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Where is the money coming from?

freeeki

Arsehole.
Aug 5, 2008
11,835
69,424
Didn't we have a net spend of something absurd like £29m in five years?

The idea that we're not sitting on massive cash reserves is nonsense, and that's before you even consider our borrowing power, the possibility of investment from JL or elsewhere, upcoming sponsorship deals like the naming rights to the stadium, and whatever the plutocrats were saying.
 

Flashp

Well-Known Member
Aug 31, 2012
783
3,273
I don't think you can ascertain from this thread, that people are moaning about our spending.

While I think everyone is happy with our window (so far), you can't begrudge fans worrying over whether it will all be set off by the sale of one of our star players.

The 175 m. £ loan was an excellent opportunity at the rate being offered, and though the loan itself cannot be used for transfers, it can cover other running costs, freeing up the funds already in the coffers for investment in the playing side.

The time for value investment opportunities is - like other posters have noted - now that the market is depressed. You can already see it reflected in the fees being paid this TW across the board in contrast with the last couple of years.
 
May 17, 2018
11,872
47,993
Wasn't it Dragon1 (or someone on COYS) that said there has been an injuction of cash. I didn't see anything else to confirm what or how but I assume something has happened behind the scenes.

There ws that £175m loan but it has been said that that wasn't for transfers.

It was the COYS Goat (Galahad) that implied that.

ITK have, of course, subtle pointed out that a man like DL doesn't run a business on the breadline and will, inevitably, have had a 'special player fund' set aside (no doubt the same one we would have used for Dybala)
 

Neon_Knight_

Well-Known Member
Jul 20, 2011
3,972
6,597
Which version? They've spent £80m already and want to spend more, so are we talking O'Deary Leeds or Buyelsa Leeds. I've taken the liberty of making silly nicknames for each so that we can easily distinguish between them.

If Leeds are currently doing a Leeds, and it works out, will other clubs still be 'doing a Leeds'? Does a successful Leeds supersede the O'Deary Leeds? Or will it always be 'a Leeds' regardless? If this iteration of 'doing a Leeds' is worse that the others, will people point towards this one or the original one? Will they say "as long as we don't do a Leeds doing a Leeds?". Will that in itself be called 'Leedsception'?

Will their fans grow old saying "Back in maa deehh doing a Leeds meant spending moneh whalst trying t'win cups - not this tryin t'stay up nonsense"?
Hahaha! Reminded me of this sketch
 

stormfly

Well-Known Member
Dec 6, 2006
4,584
11,990
I think it’s probably coming from the 20 billion Bale and Son shirts we have sold over the world ;)
 

amathews3416

Well-Known Member
Mar 3, 2008
1,696
6,110
Warren Buffett once said “bad news is an investor’s best friend.” He historically buys companies with a good foundation at a value price during recessions.

I believe we see the same playing out with Levy and Spurs at the moment.
 

pagevee

Ehhhh, What's up Doc?
Oct 4, 2006
644
147
Warren Buffett once said “bad news is an investor’s best friend.” He historically buys companies with a good foundation at a value price during recessions.

I believe we see the same playing out with Levy and Spurs at the moment.
This.
 

JCRD

Well-Known Member
Aug 10, 2018
19,153
30,013
Just spending Kane money in advance

JOKE

Look stop bringing this up - Levy will have second thoughts
 

Yid-ol

Just-outside Edinburgh
Jan 16, 2006
31,096
19,266
Levy checked down the back of his sofa for some lose change?! :cautious:
 

luptic

Well-Known Member
Jul 21, 2008
2,352
3,062
Maybe Joe Lewis has some money to be laundered?
It seems to work for other clubs
 

Neon_Knight_

Well-Known Member
Jul 20, 2011
3,972
6,597
Wasn't it Dragon1 (or someone on COYS) that said there has been an injuction of cash. I didn't see anything else to confirm what or how but I assume something has happened behind the scenes.

There ws that £175m loan but it has been said that that wasn't for transfers.
Maybe the loan wasn't directly for transfers, but has avoided our transfer kitty having to be redirected to other things (due to COVID impact on revenue).
We would have had at least a provisional budget for the summer transfer window. The reduction in revenue will have impacted our overall budget and the loan was to offset this.
 

Neon_Knight_

Well-Known Member
Jul 20, 2011
3,972
6,597
Maybe Joe Lewis has some money to be laundered?
It seems to work for other clubs
According to Wiki, his net worth has increased by about 10% since 2018. Maybe he needed to offload some cash so he could close the door to his vault in the Bahamas ?

On a more serious note, FFP limits how much Joe Lewis can invest per year, but our record profits for 2018-19 mean the club could run at a significant loss this year without risk of FFP implications. Some of our rivals will have to manage a tighter ship.
 

spids

Well-Known Member
Jul 19, 2015
6,647
27,841
I do not think we are really spending all that much.

Bale, whilst on a large salary, is reportedly only costing ~£10M a season all in. Amazing business.
Doherty was only £3M more than we got for KWP.
Højbjerg was only £15M.
Reguilon is a significant investment at £27M, but again, not a massive fee.

The wage bill will become a concern if we cannot shift at least 4 or 5 players before the window shuts, and that is after the departed Vorm, KWP, Verts and Eriksen will have already helped reduce our wage bill.

Jose has said he wants two players for every position (and I know this is always complicated by flexible players like Tanganga or Davies), but we do not have many gaps now. Assuming a 4-3-3/4-2-3-1.

GK: Lloris/Hart
RB: Doherty/Tanganga
CB: Toby/Sanchez
CB: Dier/???
LB: Reguilon/Davies
CM: Hojbjerg/Sissoko
CM: Lo Celso/Winks
CM: Ndombele/Dele OR Lamela
RWF: Bale/Moura
CF: Kane/???
LWF: Son/Bergwijn

Surplus: Gazzaniga, Aurier, Foyth, CCV, Rose, Sessegnon, Dele OR Lamela.

This aligns with ITK suggesting Jose still wants to sign a CB and a CF in this window. If we spent £80M on top targets (e.g. Skriniar and Milik or Edouard), we can recoup a large chunk of that if we can sell the surplus players, even if this has to be after season long loans.
 

carmeldevil

Well-Known Member
May 15, 2018
7,558
44,788
According to Wiki, his net worth has increased by about 10% since 2018. Maybe he needed to offload some cash so he could close the door to his vault in the Bahamas ?

On a more serious note, FFP limits how much Joe Lewis can invest per year, but our record profits for 2018-19 mean the club could run at a significant loss this year without risk of FFP implications. Some of our rivals will have to manage a tighter ship.

is FFP still enforced?
 

HodisGawd

Well-Known Member
Oct 3, 2005
1,733
5,884
There are 2 things being mixed up Profit and Cashflow

In respect of profit, yes we will have taken a revenue hit in respect of COVID, but going in to this window, our expected revenues (broadcasting. advertising, sponsorships, prize money, tours etc.) would still significantly outstrip our costs (Salaries/player and ground depreciation/interest payments etc.). The new players will incur salary costs, but their transfer fees get depreciated over life of contract. It is not a case of spend £50m on Ndombele, bang £50m plus salary hit that years profit, but £10m hits each of the next 5 years profits.
There is room, and always has been room in our accounts for significant spend on players (in fact way more than we were doing even last summer), we have just never chosen to do it, but we are now taking the opportunity the current market offers.
Also I would expect us to recoup some towards end of window in respect of sales. We may even be prepared and planning on making a small loss this year (but in respect of FFP we have so much available space, it is totally irrelevant)

In respect of cashflow, this is where things are a little less clear because we did max out our cash by paying off £500m of the stadium (only borrowed half of the stadium costs and used up our cash reserves). We did have to take out a new loan from BoE, which whilst opportune due to the low interest rates, and it does have to be paid back in full early next year does still suggest we had a short term cashflow issue.
However in respect of cashflow timelines, cash would have been received recently for first half of this seasons broadcasting deal, and you don't pay off all the purchase price of players in one go, but in almost all cases it is structured (say 40% initially, 20% over next 3 years).
There could be an unexpected cashflow injection coming up, be it from external sources or just ENIC, however If we need to restructure some debt at end of season we have the assets to be able to support it, as we do need to repay the BoE loan, and debt is not a bad thing per se.

But in the main, one thing you can be assured, for all his faults, we are in good hands with the current owners in respect of profit and cash management, we will not be spending any more than we can afford, so just enjoy the owner actually doing what we have been crying out for him to be doing for the majority of his tenure, knowing full well that the club is not stretching itself anywhere near to the max.
Thank you!
 
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