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Spurs payment structures

Spurs payment structures


Spurs payment structures


Morning folks. I create articles that I enjoy creating, some require more research than others, some that research is time-consuming, but all this research does give me a broader picture and that's reflected in what I have to say, covering topics others don't.

We have looked at many things over the years but mentality and positivity have been two key threads that crop up time and time again...and I don't see that stopping, given the major keys to success they are.

Today we'll tackle a subject I was asked for but had already written the jist of the day before, so it was quite timely.

We will be talking money and transfers, once I have fed the birds their suet balls and the morning rush hour begins on the balcony, followed by parent and toddler learning how to feed...noisily.

Let's jump you straight in with player transfer fees for the last 5 years.

Now, generally, transfer fees of any size, are paid for over the lifetime of the initial contract, usually 5 years.

This is not always the case, Kulusevski is being paid for over 3 years for instance, but Spurs don't start paying anything for 3 years, meaning he'll be paid off in 6 years.

So, for simplicity, we'll pretend this is the case for all incoming and outgoing transfer fees to keep it consistent and demonstrate a hypothetical financial position for you.

This will demonstrate a point you can then fine-tune yourself.

THFC Players Bought

1 Ndombele €62m
2 Richarlison €58m
3 Romero €50m
4 Porro €45m
5 Lo Celso €32m
6 Kulusevski €30m
7 Reguilón €30m
8 Bissouma €29.2m
9 Sessegnon €27m
10 Gil €25m
11 Emerson €25m
12 Maddison €46.3m
14 Vicario €20m
15 Udogie €15m
16 Spence €24.7m
17 Bentancur €19m
18 Sarr €26.9m
17 Doherty €16.8m
18 Hojbjerg €16.8m
19 Rodon €12.1m
20 Bergwijn €30m
21 Clarke €11m
Total = €661.8m

I haven't included loan fees in this, I just wanted to compile a simple uncomplicated list..

Cost of players bought €661.8m divided by 5 (years) = €132.36m

So our annual expenditure on transfers is €132.36m

Obviously this changes every year as some payments drop off, fresh ones are included in both purchase and sale lists.

THFC Players Sold

1 Winks €11.6m
2 Bergwijn €32,5m
3 Carter-Vickers €7m
4 Foyth €15m
5 Alderweireld €13m
6 Sissoko €3.5m
7 Hart €1.2m
8 Walker-Peters €13.3m
9 Eriksen €27m
10 Trippier €22m
11 Janssen €9m
12 N'Koudou €4.5m
Total = €159.6m

€159.6m divided by 5 (years) = €31.92m

So, in this basic example €31.92m is our annual income for transfers

€132.36m - €31.92m = €100.44m

Thus our existing transfer bill is already €100.44m annually

In the above example Eriksen, Trippier, Janssen and N'Koudou drop off the list after this summer, reducing income.

The two examples to demonstrate the type of calculations you have to make, as fans, before shouting about not spending or backing managers, these figures show a different picture.

They also show that the club need to increase income to spend more, especially when you consider in 2 years time only 70% of income can be spent on transfer fees, wages, agents' fees and head coaches' wages.

That indifference has to be changed for the club to invest, hence why the Micky Van de Ven and Edmund Tapsoba deals have all been about payment structure and have been from the start, despite journalists and supposedly better-informed ITK people flipping this way and that.

Leverkusen weren't playing ball over Tapsoba, but that's what negotiation is all about, trying to get more of your way than the opposition's way.


Wages roughly €130m
Transfer fees €100.44m
Total = €230.44m
Income in 2022 was roughly €395m
58.33%
Agents fees and head coaching team wages need to be added

Now this is all very rough, but remember the 70% figure is the maximum total expenditure figure allowed.

On the above figures, 70% is €276.5m and expenditure is already €230.44m leaving leeway of €46.06 less Postecoglou coaching team wages and agents fees.

The Hojbjerg and other players like Sanchez deals, what payment structures will they have, although in accountancy terms the full amount goes straight into the books I believe.

What players have you bought in the last 5 years that you are still paying annual instalments on and what players have you sold and what annual payments are you receiving from them

Just something to think about, which after all is the object of this blog, to make you actually think beyond instantaneous knee-jerk reactions.

1 comment

  1. Clive,
    Thank you for this piece.
    I come from both a financial background and a football one having worked in the city and the Premier League and just feel it is important for everyone to understand that a figure quoted as the transfer price for a player is not the final liability the club needs to fund. I am appreciative of your work.
    Regards
    Les