Will Lankshear

[MartyFunkhouser]

While further sales would help increase our ability to spend wrt the rules it doesn't mean that we need it in order to continue to spend - we should have plenty of wiggle room already shouldn't we?

That's what I thought, was the idea not to be ambitious regardless, great we are seeing money come back in, but I didnt think be active this summer was reliant on major sales.

 

[Muttley]

That's what I thought, was the idea not to be ambitious regardless, great we are seeing money come back in, but I didnt think be active this summer was reliant on major sales.

I think the bit people forget is the difference between payment terms, cash and amortisation rules.

We buy a player for £100m and put them on a 5 year contract. The payment terms are 40% up front and then 3 stage payments of £20m each year. That means that we have to find £100m in 3 years but we amortise (declare) it over 5 on the balance sheet.

It's all about cashflow really. Spurs outstanding transfer debt is getting bigger and bigger and it is accumulating interest on debt. It won't be too long before the Kane payments finish if they haven't already. We keep having to make these stage payments on players we bought in the prior seasons, not to mention this summer's up front payments. So the difference between money owed to other clubs and money owed to us grows and grows.

I can absolutely believe that at this point of the summer we need to sell before we buy regardless of where we are with PSR.

 

[Finney Is Back]

Yep so an unconditional loan does. Hence my comment a loan with an obligation to buy
Like we did with Romero

The sale (and transfer fee) goes through a year later. It’s why clubs do these deals - to push the money into the following year’s accounts.

 

[MartyFunkhouser]

I think the bit people forget is the difference between payment terms, cash and amortisation rules.

We buy a player for £100m and put them on a 5 year contract. The payment terms are 40% up front and then 3 stage payments of £20m each year. That means that we have to find £100m in 3 years but we amortise (declare) it over 5 on the balance sheet.

It's all about cashflow really. Spurs outstanding transfer debt is getting bigger and bigger and it is accumulating interest on debt. It won't be too long before the Kane payments finish if they haven't already. We keep having to make these stage payments on players we bought in the prior seasons, not to mention this summer's up front payments. So the difference between money owed to other clubs and money owed to us grows and grows.

I can absolutely believe that at this point of the summer we need to sell before we buy regardless of where we are with PSR.

Yeh fair

 

[billyiddo]

I think the bit people forget is the difference between payment terms, cash and amortisation rules.

We buy a player for £100m and put them on a 5 year contract. The payment terms are 40% up front and then 3 stage payments of £20m each year. That means that we have to find £100m in 3 years but we amortise (declare) it over 5 on the balance sheet.

It's all about cashflow really. Spurs outstanding transfer debt is getting bigger and bigger and it is accumulating interest on debt. It won't be too long before the Kane payments finish if they haven't already. We keep having to make these stage payments on players we bought in the prior seasons, not to mention this summer's up front payments. So the difference between money owed to other clubs and money owed to us grows and grows.

I can absolutely believe that at this point of the summer we need to sell before we buy regardless of where we are with PSR.

I thought that the loan/injection whatever it was, was to fix our cashflow issues?

 

[Muttley]

I thought that the loan/injection whatever it was, was to fix our cashflow issues?

It definitely helps.

In Jun 25 our transfer debt was £240m. We're now in Jul 26 and all we've done is spend money since with a little recoup from Brennan and some more Kane payments.

The loan injection was supposed to be £150m. What it has done is help with some up front payments of transfers and reduce the overdraft on our transfer debt. It has perhaps brought us back to a "manageable" debt based on our incomes.

£150m can't make you start operating like multi-billionaires right?

 

[Bedfordspurs]

The sale (and transfer fee) goes through a year later. It’s why clubs do these deals - to push the money into the following year’s accounts.

But recorded in this year under CSR
I checked that out before I commented

 

[Bedfordspurs]

I thought that the loan/injection whatever it was, was to fix our cashflow issues?

They took out the £100m loan last season around September and that was a short term one
They then put in £100m
And another £100m IIRC