Spurs have only spent £22m net in the transfer window

49

Spurs spend £60m so far in the transfer window so the media tells us…

Err no actually its only £22m and by the way our wage bill has reduced by £70,000 per week.

The tables below track Sales and Purchases since the start of the 2012-2013 season and reveal the amazing job done by Daniel Levy. The squad has been strengthened with or without the sale of Gareth Bale.

Infact if you consider the additional £40-£50m Spurs will receive from the improved TV deal in season 2013-14, I can reveal Spurs could by Willian and still finish the season cost neutral.

The figures below don’t include deferred payments, but as this is believed to be common practise I have assumed it flat for Sales and Purchases.

Using generally accepted figures and estimates of contract value, no deal typifies Levy more than the revenue just received from the 50% buy on clause included in the sale of Dos Santos. Such a clause also exists with Adel Tarrabat

So here we go starting from the start of the 2012-13 Season:

Spurs Transfer Spending Season 2012-13
Name Value Wage P/W  
Sales      
July – August 2012    
Corluka

5.5

£35,000.00

 
Bassong

4

£30,000.00

 
Pienaar

4.5

£50,000.00

 
Krancjar

5.5

£30,000.00

 
Modric

33

£50,000.00

 
King

0

£70,000.00

 
Nelson

0

£40,000.00

 
Saha

0

£60,000.00

 
Van Der Vaart

8

£70,000.00

 
Dos Santos

4

£35,000.00

 
Total

64.5

£470,000.00

 
Purchases      
Lloris

8

£50,000.00

 
Dembele

15

£50,000.00

 
Vertonghen

9

£60,000.00

 
Sigurdsson

8

£40,000.00

 
Adebeyor

5

£90,000.00

 
Dempsey

6

£60,000.00

 
Total

51

£350,000.00

 
Balance

13.5

£120,000.00

 
         

 

New player contracts:

New Contracts Extra Wage P/W
Bale Complete

£50,000.00

Walker Complete

£25,000.00

Kaboul Complete

£20,000.00

Total  

£95,000.00

Balance

13.5

£25,000.00

 

Players purchases in January 2013:

Purchases    
January 2013  
Holtby

1.5

£50,000.00

Fryers

3

£25,000.00

Balance

9

-£50,000.00

 

Players released at end of Season 2012-2013:

Jenas  

£40,000.00

Bentley  

£50,000.00

Gallas  

£65,000.00

Bostock  

£15,000.00

Total  

£155,000.00

Balance

9

£105,000.00

 

 

 

So Spurs finished last season with a Transfer surplus and a smaller overall wage bill, however most Spurs fans felt we finished the season with a squad weaker then the year before.

So on to the present Transfer window and a flurry of early activity. The life of a Spurs fan is never straightforward. In seasons past last minute Sales and Purchases have been seen by many as the reason for our slow starts. Rather than bask in this early activity we are left to wonder is this all a prelude to the sale of Bale?

Anyway here we go for Season 2013-14

Spurs Transfer Spending Season 2013-14
Name Value Wage P/W  
July – August 2013    
Sales      
Caulker

8.5

£30,000.00

 
Dempsey

6

£65,000.00

 
Huddlestone

5.5

£35,000.00

 
Parker

3.5

£70,000.00

 
Dos Santos

3

   
Total

26.5

£200,000.00

 
       
Balance

35.5

£305,000.00

 
Purchases      
Soldaldo

26

£85,000.00

 
Capoue

8.5

£50,000.00

 
Chadli

7

£40,000.00

 
Paulhino

16

£60,000.00

 
Total

57.5

£235,000.00

 
       
Balance

22

£70,000.00

 

So there you have it.

There are some adjustments in the detail for sure, but I think overall the message is there the very possible sales of Adebeyor and BAE could generate a further £12m, meaning Willian could be brought in and we’d still stay in budget for the year.

What do you think?

Have something to tell us about this article?

49 COMMENTS

  1. Interesting math, but there are some problems with your equations. For instance, the releases of Jenas, Bentley, Bostock et al – players who cost us money when they arrived – are losses, in Bentley's case a quite significant one. Just starting off with a blank slate at the start of last season is oversimplifying it quite a bit.
    Furthermore Dempsey's wages seem to rise by 5000 between buying and selling, and some of the prices quoted in this transfer window seem a bit lower than reported.

    The point you are trying to make, however, does come across – Levy is a shrewd operator. And mayhaps the Bale Sale™ isn't quite as necessary as we like to believe. I, however, am quite convinced he will leave us, but this will leave us a better balanced team without the over-reliance on one man.

    • Not really, you have to start somewhere – the flip side is that it doesn't show how the players we have bought and kept have increased in value while on our books. As simplifications go it's a very good effort IMHO.

    • not my understanding at all, as with assets in all businesses, they're value is amortised through the period of their contract, so their actual value at the point of release is effectively zero.
      This is how a team can release a player and not post a significant loss on their books.
      Its obviously even more complex with selling at an increased value to what was paid as the business will have reduced their value internally already, so an increase in value at the point of sale is a double benefit.
      All of that aside, the simplistic view above from Adam is the easiest way to illustrate his point without getting into the more technical side of financial management of a business.

  2. You come to the right conclusion on total expenditure (on transfers) but don’t set it out very helpfully!! When current total sales exceed purchases, show a negative balance (i.e. at end of season 2012-13, balance should show -9, that is, a negative outlay because more has been recouped than expended). After sales in July-Aug 2013, this goes down further to -35.5, and is only taken to a positive balance (i.e. a net outlay) of 22 when this summer’s acquisitions are taken into account. ;)

  3. You come to the right conclusion on total outlay on transfers, but don't set it out particularly helpfully. When showing a "balance", if at the point you are recording the balance the total sales have exceeded purchases, you should be showing a negative balance. So after Jul-Aug 2013 sales, the balance should show as -35.5, which is only brought to a positive balance (i.e. a net positive outlay on transfer fees) of 22 due to purchases totalling 57.7 (million). Well done though, good stuff.

  4. A few details may be off, (loan revenue) but in general your point is exactly correct. Others forget the funds from prior player sales and prior year player sales that have accrued. Also consider that AVB stayed with Spurs and likely stayed with the assurances that he would be allowed to build a team he wanted (an option that would have been provided at PSG). Furthermore, consider the increased revenues that will come with the new stadium to further fill the teams coffers (Stadium naming rights, almost double 'gate' revenue, etc.). The Spurs management may be the best in the Premier League (Maybe 2nd Best behind MU). Still, you can appreciate and see what they are building.

  5. i completely agree with the notion you are putting across, even more so if factoring in dealings going back to Berbatov.

    Not sure about all your numbers though.

    Sick of hearing all this stuff that we are spending the Bale money before selling him.

  6. An interesting article even though some of the wages and transfer figures are not correct – however they are closer than most that I see. A lot of people think that Vertonghen and Lloris were well over £10m when they were just over £15m the pair. Fryers was £900,000 so nowhere near £3m (do you seriously think Levy would pay £3m for a full back who has barely played a game and then put him in the Development squad!). What it does demonstrate that Levy buys low and sells high and has done an amazing job at making Tottenham competitive. The annoying thing is that if the billionaires hadn't bought the ex football clubs, Chelsea and Manchester City, Tottenham would be competing for the league with Manchester United (and probably Arsenal) with a stadium holding 36,000 – less or similar to Leeds, Middlesbrough, Newcastle, Sunderland, Forest, West Ham, Derby, Coventry (!), Everton, Ipswich, Norwich, Southampton, Wolves, Stoke, Villa, West Brom, Sheffield United, Sheffield Wednesday, Leicester City, Brighton, Swansea, Cardiff. Our football club is in very safe hands.

  7. You can't apply the 9 million balance from prior to this window and then say that the result is the net form this window. 22 million is the net since the end of the 2011-2012 season. 31 million is the net in this window.

  8. there are also the millions we made off % of next sale I only know of 1 that was GD Santos we made £3.75m for his sale to valencia

  9. I am amazed Hudd was only on 35k? And Lloris is only on 50k? French captain and in top 3 in the world!. On a seperate note I wonder how much we are paying Baldini he has worked wonders apart from Benteke everything else has come off. Good interesting article thou, well done.

  10. Hi – sorry my 1st effort so I'm not quite ready to join KPMG! But hopefully the main point has come across Levy is very shrewd in the market.
    Numbers are a best estimate, but again I think the approx figures net out both ways
    I think actually we have been transfer neutral for a number of seasons – sales of Carrick, Berbatov etc. But I take the point I am starting from a blank slate.

  11. Good effort although we seem to have sold Dos Santos twice. Know Levy is the master negotiator but think thats beyond even him.

  12. I would claim the numbers are even better. We only paid 15m€ for Soldado now, and the remaining 15 over 3 years, 5 each year… Knowing Levy, this is also the case with Paulinho and other expencive buys…

    • It is correct. We had a share of his sell-on value. The second ‘sale’ is money recovered from his next club selling him on.

  13. How do you know how much each player earns? Are you an accountant at the club?

    And I need to say that you don’t know how to count. I will do it much better.

    Transfers OUT:

    Caulker £8.5

    Parker £3

    Dempsey £6

    Huddelstone £5

    Dos Santos £2.5

    Transfers IN:

    Capoue £8 (+ £2 add-ons)

    Paulinho £15 (+ £2 add-ons which we haven’t payed yet)

    Chadli £7

    Soldado £11 (+ £5 + £5 + £5 during next three years, which we haven’t payed yet)

    TRANSFER BALANCE: £25 – £41 = -£16

    8.5 + 3 + 6 + 5 + 2.5 = £25

    8 + 15 + 7 + 11 = £41

    And you must understand, that it would be a disaster, if we don’t get CL money next season to pay all the money we owe. It is a risky transfer business by Levy and Baldini.

    • There is also a final payment of £18m due for Modric this summer and the new TV deal worth £40m – £50m. That puts us well into the black and, with more sales to come (Adebayor, Assou-Ekotto), we could afford Willian and remain in the black. We do not need to sell Bale for financial reasons. While the media is harping on about the £60m we've spent (which is incorrect when you consider the Soldado deal) we would likely end up something like £20m in the black if we only added Willian at £30m.

  14. Most of the wages on this are made up, as are most of the tabloid estimations. We all know players earn a lot, but I think we need to stop throwing numbers about, unless of course, all the players showed you their bank accounts and tax statements? I agree with the sentiment in the post, we haven't spent as much as some jokers claim, but hey, even I can guess what Huddlestone and Parker et al were earning.. doesn't mean I am telling the truth.

  15. It is 22 million, just some typos, paulinho should be 17 mill and the total 58.5 which by the sum of 22 mill that you ended up with, seems to me that you knew this and that you just mis-typed it. So if we buy coentrao and sell assou-ekotto and buy willian and sell townsend or naughton or adebayor we can come up to like 40 mill of expenditures net. Not too shabby

  16. Hi Dos Santos appears twice as we sold him for a fee and then received a further payment as part of the 50% sell on Fee Daniel Levy had in his contract

  17. I think I'll go back a bit further for Spurs transfers, perhaps a couple more seasons and try and get these numbers more accurate. Should have that ready in a few days

  18. Dos Santos second figure was his sell on when he was sold on by the club that we sold him too! What the author of this point is making is the shrewd business conducted by Levy and Co, let's not get all accountant on his ar*e! Good points well made. We have sold for heavy profit for years and bought relatively cheaply (until this summer!) so we have all the profits, Champions League money etc which has been burning a hole in the Club's pockets…….COYS

  19. To all the moaning accounting experts – the point has clearly been made and made well. Levy knows exactly what he is doing and is running our club absolutely superbly. Despite seemingly spending a fortune year on year, our actual net spend is affordable and sustainable. Our squad keeps getting better and better and the recent good times are soon to become great times. Compare us at the end of the year with Chelski and Qatar City whose net spend must be £300m+ in the last 4 years each. I cant see us being more than only a few points away from both of them come the end of the season whilst doing so on a totally different financial planet . As long as we get in the Champs League, we will then move on to going for the title. In Levy we trust. COYS!!!

  20. Nice post and read most of the comments about Bale not sold just yet – but how do these figures look when we pay £30m for Willian and £35m on Lamela. Levy runs a tight ship. If we buy these two we are -£85m. Hmmmm, that figure sounds familiar………SOLD!

  21. We sold him twice because there was a sell on clause, meaning that the club earn money from any future sale of the player. That is why he is on the list twice! Good article btw, although rough estimates are used it shows that perhaps this isn’t the bale money being used

    • We sold him for a fee which I have found out was only £1.7m, but had a 50% sell on clause in his contract so when he was sold on we got an extra payment

  22. I think you can simplify the point you are trying to make even easier. Let the club sort out the value of its assets, its FFP commitment. But contrary to the misconception around these are the basic numbers

    In: Paulinho (Corinthians, £17m), Chadli (FC Twente, £6m), Soldado (Valencia, £26m), Capoue (Toulouse £8.6m) Total: £57.6m.

    Out: Scott Parker (Fulham, £3.9m), Tom Huddlestone (Hull, £5.1m), Clint Dempsey (Seattle, £6m) Steven Caulker (Cardiff City, £8m) Total: £23m

    Current Transfer Window Spend: £34.6m

    The rumored additional TV revenue is in excess of £14m (per year for 3 years) and means we have spent £20.6m this summer which I would not worry about in a normal transfer window.

    Given a Top 4 would raise our income by £50m, a £20.6m gamble isn't really a gamble.

    It is rumored that Lewis has granted £50m into a war chest…if true we have another £30m to spend, so a Will.i.am or Lamela £30m bid would make sense but not both.

    And by my maths that put us at £0m.

    So if Bale goes in comes Coentrao and £95m. Leaving us with another £30m for the one we didn't buy above and £65mill as a deposit on the £300-400m stadium. Assuming that is enough to a top 4 the additional revenue pays the new ground of in 5-8yrs.

    If Bale stays we still get Top 4, the CL money pays for the stadium in about the same amount of time.

    So forgot the stories of Spurs splashing cash everywhere it looks like a win-win to me!

    COYS

    • I am working on an article about the new TV deal. The figures from all the International deals have not all been released yet, but we do have a good idea from the figures in so far.
      The new deal will mean approx and extra £35-40m for the club finishing bottom of the league and the club finishing top will get an extra £50-55m.

  23. Hi – Yes the actual numbers are hard to estimate. I was looking to highlight the recent purchases up to and including Willian are not predicated on the sale of Bale.
    Our transfer surplus from last year, sales and the significant increase in our TV Revenue will mean we can afford these new players whether we sell Bale or not.
    We may well end up selling him with 1-2 more being added which then still puts a decent chunk towards the New Stadium.

  24. have to agree with others posting about your figures/Maths take for e.g this …. although R.M'rid agreed a fee they are still owing us on the L.M deal and no doubt try and use this when concluding a deal for G.B

  25. Lets not forget about all the other revenue ? Sky , European games, shirts sponsors, box revenue etc! If anyone can tell me how much money over the last 5 years the brilliant David Levy has saved I would appreciate that information.

    My guess is that Mr Levy has the best values at heart for The Mighty Mighty Spurs!

  26. Willian is currently having a medical at The Lane!!!! Loving our transfers this summer. I was a bit disappointed we sold Caulker, I know we needed space made in our squad and wage bill so the new guys could come in but I thought Caulker was turning in to a good centre back.

    I was also a bit disappointed we sold The Hudd, until I saw Capoue play on Sunday lol

    Wonder how much Willian is costing??

  27. Hi, I am curious about the installment payments of a transfer. Is there a tax benefit for doing so? 3 questions.

    Given we paid 7m for Bale and I presume it's already amortized in full, or whatever the balance o/s should be minimal.

    1) So if we sell him for 100m one time cash payment, we basically have a profit of 100m on the books this year. The tax bite would be some 23m, right?

    2) If we sell him for 4 installments at 25m each year, does the taxman recognize revenue over 4 years? If not, it means that the first installment is just to pay the tax.

    3) On the books ( and for tax purposes), how is the transfer fee accounted for? Is it booked individually or grouped as a pool?

    Yes, I was an accountant during my youth.

    Spurs fan since Martin Peters hopped over.

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