Where is the money coming from?

[Air Jordan 3]

All of our transfer dealings will be structured over the coming seasons. You can bet your life Levy is all over that and doing the appropriate calculations. Buying in a depressed market is a tried and trusted investment strategy.

Agree with this, there has always been talk that Levy plans for a doomsday scenario and bursting of the football ‘bubble’.

Its a real opportunity to gain a competitive advantage especially with our low wages/turnover ratio.

 

[HodisGawd]

Why do we care ?

I'm interested because I'm a ST holder and pump loads of my hard-earned cash to the club.

You don't have to care.

 

[cliff jones]

We haven’t spent much at all, and last summer was making up for spending fkall in the windows prior to that.

Plus the most likely scenario is we acquire a cheapish striker on deadline day perhaps in a GLC style deal and a few leave either on loan or perms.

Not a huge net outlay except for half of young Gareth’s pay packet which will hopefully be offset by people in Wales buying shirts

edit- yes I am joking about shirts

 

[Trotter]

Now I'm no accountant, but it seems to me like we have spent a lot of money over this window and the previous two. Our last declared profits were £172m and we've spent roughly that. This year's financial statement will surely show hugely-reduced revenue, with gate receipts shattered and Champions League money falling considerably. So far we have only recouped money on Eriksen also and have more senior players on the books put another £200-plus p/w player in Bale.

How are we apparently now putting bids in for the likes of Škriniar and also going after strikers like Milik?

Is this window a bit of a roll of the dice? Especially considering recent news that we won't be using our expensive new stadium again until March?

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.

 

[Neon_Knight_]

Now I'm no accountant, but it seems to me like we have spent a lot of money over this window and the previous two. Our last declared profits were £172m and we've spent roughly that. This year's financial statement will surely show hugely-reduced revenue, with gate receipts shattered and Champions League money falling considerably. So far we have only recouped money on Eriksen also and have more senior players on the books put another £200-plus p/w player in Bale.

How are we apparently now putting bids in for the likes of Škriniar and also going after strikers like Milik?

Is this window a bit of a roll of the dice? Especially considering recent news that we won't be using our expensive new stadium again until March?

We sold KWP (a RB deemed not good enough) for almost as much as we spent on Doherty (now first choice RB).

Eriksen and Vertonghen were two of our higher earners and both are now off the books.

We are actively trying to sell several first team squad players.

We recently took out a £150m loan, which means our cash flow is currently quite healthy.

Reinvesting prior profits / reducing this year's profits to increase the value and future revenue of the business (team) is common practice in business and how company avoid stagnation and decline.

It's not really a roll of the dice, as the TV money (our primary revenue stream) is guaranteed and the funds spent on new signings can be recouped from players sales if that becomes necessary.

 

[arunspurs]

I'm interested because I'm a ST holder and pump loads of my hard-earned cash to the club.

You don't have to care.

it is a valid one whether you are a ST or not. On where money coming/going:The question would have made more sense in the 2 window we didn't spend. Now - we are doing prudent business. Even Reguilon deal, seems we are paying very less Initially. So, its not like we are in some wild run of spending cash.

For now, we have been linked 2 high value players.Even in that, common consensus is, we will look for a loan+cash deal like we did for Lo Celso.

Daniel wont lose his head doing insane spending in middle of covid.

Let the transfer window complete mate...we will know what we really spent and sold and loaned.

 

[spursfan77]

People moan when we don't spend, now people are moaning when we do

 

[keenu]

I wonder what impact, if any, the no crowds until March will have on our future spending on transfers. Don't think Levy anticipated this.

 

[HotSprut]

People moan when we don't spend, now people are moaning when we do

Since when is curiosity the same as moaning?

 

[spursfan77]

Since when is curiosity the same as moaning?

Just don't worry about it, it isn't our problem.

 

[dimiSpur]

We build the stadium and the naming rights are up for grabs. I assume we receive significant offers, yet Levy holds out (obviously) for the highest possible offer and doesn't rush into anything. We get to the CL final, I assume our offers get higher.

Fast forward 8 months to December 2019, and one assumes those high offers were long gone. Our on the field performances dropped massively. The glory of reaching a CL final, long gone.

In short, Levy now recognises that without on field success, he can't get anywhere near where he wants to be financially. To get on field success, he must invest, as last season's team was average, despite injuries etc.

I think that's the crux of what were seeing now. If Levy and the Club want financial success, we must first succeed on the pitch.

 

[GutBucket]

Haven't spent much yet this season, around 40m and the only big wage earner is Bale, once we sell couple of fringe players (and with Eriksen and Vert gone) wage bill should be similar to last season. We are paying Jose 15m per year, useless investment unless he is backed. Top 4 trophy and CL money is too important, there's a reason why Arsenal gave big contracts to Willian and PEA.

 

[SSC]

I wonder what impact, if any, the no crowds until March will have on our future spending on transfers. Don't think Levy anticipated this.

Im sure over the summer they've been planning for Scenario A/B/C and what impact that has to revenue from fans/gate receipts. The smart money was always on a second wave and further restrictions in winter so the turnstile revenue projections would likely have been conservative if not ring fenced as money to spend on non playing staff overheads (i.e. stadium improvements/maintenance etc). Levy is many things but he is financially prudent, they wouldn't be blowing their wad on players on the basis we might get 25-30% of fans returning over the coming months.

 

[sausage]

Roll up !!
Roll up !!

Come on. Who's first for the "as long as we don't do a Leeds" post.

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"?

 

[WiganSpur]

Have we spent that much just yet really? Only 45m net for the window so far but admittedly a hike on the wage bill. I think you could argue last summer's spending was due to having barely any net spend for a number of years.

Wouldn't really be posing this question until we get another striker and expensive CB in.

 

[MillerT]

Meh, Levy knows what he's doing. I have absolutely no doubt that we wouldn't be upping our spending this transfer window without Levy and the board thoroughly calculating how we can afford it and taking measures to do so. The man just does not gamble or take risks, unless the down side of said risk is within a margin we can afford. Sit back and enjoy it I say!

 

[Danfunkel]

keep spending, levy.

 

[thecook]

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.

 

[carpediem991]

I wonder what impact, if any, the no crowds until March will have on our future spending on transfers. Don't think Levy anticipated this.

But Daniel Levy anticipates that other clubs have anticipated this dramatic development even worse and that there are right now bargains to be done because a lot of clubs desperately need an injection of cash.

 

[Everlasting Seconds]

So far we've spent very little. the wage bill was relatively low, giving us the wiggle room for Gaz. Reguilon has been reported as a very small up front fee. Doherty and PEH were cheap.

Don't believe for a second these reports of us spending £40M plus on a player. Any deals we do will be heavily structured to not pay much now. I'd imagine it's why we still haven't bought a striker.

Equally don't buy into the idea that we haven't spent that much. Yes, the money hasn't left Tottenham's accounts this autumn, but a future obligation has been/will be taken on to pay for the signings. That future, structured financial obligation must be paired today with somebody owning Tottenham the same kind of a future revenue.