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Tomori, Danso, Kelly, Juventus and Tel Accountancy

Tel and Danso
Mattys Tel and Kevin Danso join Spurs, two players with pace.

Ange Postecoglou revealed Tottenham Hotspur have had discussions with players who turned out not to be the right fit for the club and centre-back Fikayo Tomori was one of those players.

He wanted to stay at AC Milan but equally, with his Chelsea connection, he didn't want to join Spurs because of that rivalry.

Postecoglou eluded to that in a press conference "Tottenham remains a great club, capable of competing at high levels.

The question is whether the player can see the potential that we see at the moment, or at least what I see. If convincing him becomes too complicated, he is probably not the right profile for us."

Juventus had an agreement to take Kevin Danso on loan for €3m + bonuses but Tottenham stepped in with a €25m bid for a loan with obligation to buy.

Lens wanted Danso to join Tottenham and the player flew to London to complete the deal with Lloyd Kelly (Newcastle United) going to Juventus for the €3m + €0.8m bonuses.

Juventus made an announcement so I'll use that to explain how these loan plus purchase deals work from the clubs point of view because we a deal like this for Danso from Lens and Mathys Tel from Bayern Munich.

Juventus statement:

"Juventus Football Club has reached an agreement with Newcastle United Football Club for the temporary acquisition, until 30 June 2025, of the rights to the sporting performances of the footballer Kelly Lloyd Casius for a consideration of €3 million, plus ancillary costs of €0.8 million.

"The agreement also includes the obligation for Juventus to definitively acquire the player's sporting performances if certain conditions are met during the 2024/2025 football season.

"The consideration agreed for the definitive acquisition is equal to €14.5 million, payable in three financial years, plus ancillary costs of €2.7 million; this consideration may be increased, during the duration of the sporting performance contract with the footballer, by an amount not exceeding €6.5 million, upon achievement of certain sporting objectives.

"Given the high probability of the conditions of purchase of the player being met, the transaction for accounting purposes can be classified as a definitive acquisition starting from today for a total amount of €17.5 million, plus ancillary charges.

"It should also be noted that the final assessment regarding the accounting recognition of the transaction will be carried out for the purposes of preparing the Annual Financial Report at 30 June 2025."

OK, so let's look at it financially for both sides in simple terms.

The Basic Structure of the Deal

  • Initial loan fee: €3 million (plus €0.8m in extra costs)
  • Mandatory purchase fee: €14.5 million (plus €2.7m in extra costs) if certain conditions are met
  • Potential bonuses: Up to €6.5 million based on performance

From an accounting perspective, despite being structured as a loan with an obligation to buy, Juventus are treating this deal as an immediate permanent transfer.

This is because they believe the conditions that trigger the mandatory purchase are very likely to be met, basically barring injury.

Financial Fair Play (FFP) and PSR (Premier League's Profit and Sustainability Rules) Impact:

For Juventus:

  • They're spreading the cost over multiple years (amortization)
  • The total initial accounting cost will be €17.5 million plus the ancillary charges
  • This helps with FFP because the cost is spread across multiple financial years rather than hitting all at once

For Newcastle:

  • They get to record the full sale value immediately as income
  • This helps their PSR/FFP position for the current financial year
  • The structured nature of the payments (in three installments) helps with cash flow but doesn't affect how it's recorded in the books

This type of deal structure has become increasingly common in football because:

  • It helps clubs manage their FFP/PSR compliance by spreading costs
  • The selling club gets to record the income immediately
  • The buying club can delay some of the cash outflow while still securing the player

The key detail is that even though it's technically a loan with an obligation to buy, the accounting treatment reflects what both parties believe is the real nature of the transaction - a permanent transfer with deferred payments.

Ange Postecoglou revealed in his pre-Liverpool press conference that Mattys Tel will be a Tottenham player next season, that he has not just signed him for 6 months and the player took his time exploring all his options before coming to a decision.

Tel was regarded as one of the most promising young players in Europe, expected to be a superstar before going to Bayern Munich and this season Vincent Kompany doesn't give him any game time.

A potential superstar, especially as a forward, surely nobody can complain about... if they truly support Tottenham Hotspur.

COYS

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