Debunking the Myth of a Salary 'cap' at Spurs

[justfookinhitit]

Good stuff, BC.

One guy I work with, and also one of my good mates, have had business dealings with Levy in the past. Both these guys are sharp business-wise and both of them have said that his grasp of detail and ability to drill down to the key issue is excellent. Neither of these guys are Spurs fans (one supports Liverpool, the other Wolves), and both said that they'd been so impressed with Levy in their dealings with him that they would be delighted if Levy were to ever become the Chairman of their club.

I personally believe he is absolutely the right guy to be in charge. Spurs has been very close to financial collapse in the past and Levy has built a profitable structure that gives us excellent foundations for the future. Those foundations make the club self-sufficient, and I'd much much rather be that than have a wealthy benefactor pour in their own cash and use the club as a play-thing.

 

[Delboy10]

So where's the bit about the Stadium plans?

 

[PYiddy]

I thought we gave 7M to charity?

Whatever we do give to charity doesnt really mean anything with regards of our budgets and spending power, as i am sure we get certain tax breaks by making charitable donations. The more we are giving to charity, the more we are saving on taxes. i dont know the ins and outs of the systems, but all big companies know all the best loopholes to save money, even if it outwardly looks like amazing generosity. We are saving massivly and everybody, except the inland revenue, earns out of it so happy dayz!!!

 

[thfcsuperyid]

good post

 

[SpurSince57]

Whatever we do give to charity doesnt really mean anything with regards of our budgets and spending power, as i am sure we get certain tax breaks by making charitable donations. The more we are giving to charity, the more we are saving on taxes. i dont know the ins and outs of the systems, but all big companies know all the best loopholes to save money, even if it outwardly looks like amazing generosity. We are saving massivly and everybody, except the inland revenue, earns out of it so happy dayz!!!

Yes, there's a far less altruistic side to charitable donations than the kudos we get for being all-round good eggs.

 

[Bobbins]

It's very interesting, and the 60% of T/O figure is correct as it has been directly quoted by the club (and forms part of UEFA's football strategy), but as well-written and interesting as it is, Devonian does not work for THFC.

He seems to have instantly attainted godlike status on COYS simply because he includes some correct sums in his post, but he hasn't actually offered any evidence whatsoever that he knows there is no salary cap. His entire point is based on the figures recently released by the Club and working out the remaining percentage of T/O based on our current wage bill (which is public knowledge).

I'm not trying to debunk his theories, but please try and remember that this is all they are - theories. He does not know if Spurs have a salary cap or not (one point to consider is, if we didn't, why on earth have we been reported as having one ever since ENIC took over, and why haven't the club denied it if it isn't true?), he is speculating.

His post, and conversation in the COYS thread, is interesting, but it is not fact. Please bare that in mind.

 

[Krafty]

I imagine that the club has a wage structure - top players on one pay grade, next class on another - and they also know that bringing in someone on a higher wage than anyone else will see all the other players wanting to move up a level on the pay scale. In that way we ahve a salary cap, but then again any club that doesnt have a wage cap would be in total disarray.

I also believe hearing that a lot of our players are on largely performance related pay. Anyone, whatever is happening, we are in a healthy financial position and anyone wanting 70k a week when they arent guaranteed to be first choice or fit most of the time they can go get stuffed.

 

[sloth]

It's very interesting, and the 60% of T/O figure is correct as it has been directly quoted by the club (and forms part of UEFA's football strategy), but as well-written and interesting as it is, Devonian does not work for THFC.

He seems to have instantly attainted godlike status on COYS simply because he includes some correct sums in his post, but he hasn't actually offered any evidence whatsoever that he knows there is no salary cap. His entire point is based on the figures recently released by the Club and working out the remaining percentage of T/O based on our current wage bill (which is public knowledge).

I'm not trying to debunk his theories, but please try and remember that this is all they are - theories. He does not know if Spurs have a salary cap or not (one point to consider is, if we didn't, why on earth have we been reported as having one ever since ENIC took over, and why haven't the club denied it if it isn't true?), he is speculating.

His post, and conversation in the COYS thread, is interesting, but it is not fact. Please bare that in mind.

Not quite right. I'm not registered on COYS so this is gleaned only from what BC has posted but while he claims a lot of this information is publicly available that is not the same as saying he doesn't have his own sources. In fact here he says he knows Levy...

If anybody has met Levy (and I have) then they will know just how much a fan he is and how much he wants us at the top.

And elsewhere he claims knowledge of Chelsea's wage:turnover ratio. Something not in the public domain and something that would only be known by industry insiders,

Chelski are the biggest culprits (75%) but Ar5ena1 and United are already down to 51% - Roman will NOT keep subsiding that Club - I know exactly how much they are in debt for and even though they are about to announce record T/O they will still be losing tens of millions which Roman will not accept after 2009/10 season

Now you can claim he's a phoney, but the maturity of his posts, coupled with the easy way in which he wears his knowledge and the inherent common sense he displays suggests a man who knows his chickens.

 

[Bobbins]

I'm not claiming he's a phoney (I did point that out), I'm saying that I'd rather not see on SC what has happened on COYS - i.e. the instant deification of Devonian and the acceptance of everything he says as gospel.

Chelsea's T/O:Wage ratio has been talked about endlessly in the press for the last couple of years, the information is most definitely in the public domain. And in any case, why are you assuming what he's claiming about Chelsea is the truth?

Why are you accepting the statement about meeting Levy as the truth?

I suppose I just have to repeat myself: Devonian has no evidence whatsoever that any of his statements are true. They are written in the same way the press write much of the rubbish we see about Spurs - as fact, but with little to no supporting evidence.

Just because he sounds like he knows what he's talking about, doesn't automatically mean his information shouldn't be questioned and that people shouldn't ask for evidence of his claims.

To be perfectly honest with you, I wouldn't be surprised if there is some truth to his claims. But I could quite easily write a technically competant series of posts, claim I personally knew Daniel Levy, put a generally positive spin on the whole thing and bask in the adoration of my fellow COYS members as well. It doesn't mean that what I'm saying is true, just because I do well to make it sound like it is.

Remember your pinch of salt, that's all I'm saying. Until someone meets the bloke and can varify his sources/knowledge/contacts, we have literally no evidence whatsoever that anything he's said is true.

 

[sloth]

I'm not claiming he's a phoney (I did point that out), I'm saying that I'd rather not see on SC what has happened on COYS - i.e. the instant deification of Devonian and the acceptance of everything he says as gospel.

Chelsea's T/O:Wage ratio has been talked about endlessly in the press for the last couple of years, the information is most definitely in the public domain. And in any case, why are you assuming what he's claiming about Chelsea is the truth?

Why are you accepting the statement about meeting Levy as the truth?

I suppose I just have to repeat myself: Devonian has no evidence whatsoever that any of his statements are true. They are written in the same way the press write much of the rubbish we see about Spurs - as fact, but with little to no supporting evidence.

Just because he sounds like he knows what he's talking about, doesn't automatically mean his information shouldn't be questioned and that people shouldn't ask for evidence of his claims.

To be perfectly honest with you, I wouldn't be surprised if there is some truth to his claims. But I could quite easily write a technically competant series of posts, claim I personally knew Daniel Levy, put a generally positive spin on the whole thing and bask in the adoration of my fellow COYS members as well. It doesn't mean that what I'm saying is true, just because I do well to make it sound like it is.

Remember your pinch of salt, that's all I'm saying. Until someone meets the bloke and can varify his sources/knowledge/contacts, we have literally no evidence whatsoever that anything he's said is true.

Just to say you're right, we have no proof that what he says is correct.

I very much doubt you could come anywhere near producing something as coherent or detailed as that. I don't mean it as an insult, as I know I couldn't either.

And I've given the reasons as to why I tend towards believing him, but thinking someone is probably genuine is not the same as saying that someone definitely is.

What do you think? Do you think he's probably genuine? And if so, why the post?

 

[striebs]

Stolen shamelessly from Devonian on COYS. Interesting read.


Levy can go to £51.5 million this year, without any sanction from Lewis, and as we currently stand at £43.8 million then that means we can afford to pay NEW players a total of £7.7 million (and that does not include players leaving) – that equates to an extra £148,000 per week on wages.

The Torygraph presented these figures for wages in May 2007 :-
- Chelsea (£114m)
- Manchester United (£85m)
- Arsenal (£83m)
- Liverpool (£69m)
- Newcastle (£52m).

Wages have risen faster than inflation so our wage bill must still be under half Man Utd's and Arsenal's and under 60% of Liverpools .

A rational person would surely have to conclude that our wages will need to near double if we are to compete with Arsenal and Man Utd in the League .

This can only happen if Spur's revenue increases very substantially and the performance in the transfer market improves towards what Mr Wenger has achieved .

 

[wooderz]

The Torygraph presented these figures for wages in May 2007 :-
- Chelsea (£114m)
- Manchester United (£85m)
- Arsenal (£83m)
- Liverpool (£69m)
- Newcastle (£52m).

Wages have risen faster than inflation so our wage bill must still be under half Man Utd's and Arsenal's and under 60% of Liverpools .

A rational person would surely have to conclude that our wages will need to near double if we are to compete with Arsenal and Man Utd in the League .

This can only happen if Spur's revenue increases very substantially and the performance in the transfer market improves towards what Mr Wenger has achieved .

New stadium would come in handy then eh!

 

[batigol]

I think what Devonian is trying to say is that what Levy is trying to achieve is something sustainable even after he leaves the club and I think that is rather admirable if true. At least he shows that he cares and works at improving the club without dumping enormous debts on us.

Not sure if all the wage ratios are accurate and not bothered enough to check but we certainly are not small spenders and I think Levy has wisely came up with a cheaper way to get players (if all claims are true); getting a world class coach in with an excellent club set-up to attract top players rather than depend on crazy wages and fees always to get the players like Newcastle does.

All in all, Levy ain't a Saint but we are certainly way better off than we were since he stepped in. Just wish we would shift out of transition and become challengers.