Who we sell doesn't dictate how much we have to spend
2 min read
I saw a comment on the blog enquiring how much we had spent on our purchases and how much we have made on sales to determine how much we have left to spend, but that isn't how we work out how much we have to spend.
Each summer window we have approx £25-million to spend on transfers. The fee you see quoted are not what we are paying out or receiving in that window.
We pay for players, as do all clubs, in instalments, usually over the period of the contract offered to the player. Let's take Heung-Min Son and his proposed £22-million move from Bayer Leverkusen to Spurs and use a hypothetical 4-year contract.
The initial payment now might be just £7-million with the remaining £15-million split over the next three years at £5-million each, totalling the initial reported £22-million fee.
When we sell a player again we don't receive that money in a lump sum but in yearly payments. Now I'm no accountant so what goes down in the books I'll leave to someone else, but the £25-million we have to spend is on top of the total amount of instalment payments that we are already paying for that year.
For smaller fees we may well pay in one lump sum but definitely for larger fees we do not. Our spending power depends upon we will still have to pay for so some windows we can afford to spend more than others and I suspect when the stadium is built that £25-million will be squeezed further. Therefore to prepare for then we have to organise our instalment payments now for the players we are buying, we can't afford to be spending too big as that will leave us perhaps in a poor position in 3 years time.
The instalment income and expenditure have to be carefully managed and it's that that determines our transfer budget, not who we happen to have sold that window.
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Each summer window we have approx £25-million to spend on transfers. The fee you see quoted are not what we are paying out or receiving in that window.
We pay for players, as do all clubs, in instalments, usually over the period of the contract offered to the player. Let's take Heung-Min Son and his proposed £22-million move from Bayer Leverkusen to Spurs and use a hypothetical 4-year contract.
The initial payment now might be just £7-million with the remaining £15-million split over the next three years at £5-million each, totalling the initial reported £22-million fee.
When we sell a player again we don't receive that money in a lump sum but in yearly payments. Now I'm no accountant so what goes down in the books I'll leave to someone else, but the £25-million we have to spend is on top of the total amount of instalment payments that we are already paying for that year.
For smaller fees we may well pay in one lump sum but definitely for larger fees we do not. Our spending power depends upon we will still have to pay for so some windows we can afford to spend more than others and I suspect when the stadium is built that £25-million will be squeezed further. Therefore to prepare for then we have to organise our instalment payments now for the players we are buying, we can't afford to be spending too big as that will leave us perhaps in a poor position in 3 years time.
The instalment income and expenditure have to be carefully managed and it's that that determines our transfer budget, not who we happen to have sold that window.
41 Items of Signed Memorabilia - Maradona, Pele, Gascoigne, Charlton, Ronaldo and more
Tottenham Hotspur F.C. Tie & Cufflink Set
Tottenham Hotspur F.C. Sunglasses Adult Sport Wrap
Tottenham Hotspur F.C. Socks 1 Pack Junior 4-6.5
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