MartyFunkhouser
Tony Galvin
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.
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Will Lankshear
- Thread starter NaijaSpurs
- Start date
Muttley
Chris Armstrong
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
Jimmy Cantrell
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
Tony Galvin
Yeh fair
I thought that the loan/injection whatever it was, was to fix our cashflow issues?
Muttley
Chris Armstrong
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
Bert Smith
But recorded in this year under CSR
I checked that out before I commented
Bedfordspurs
Bert Smith
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
robp135
Gudni Bergsson
Very few loans work like that though. Romero as rare. Usually there is some type of obligation based on number of games.
robp135
Gudni Bergsson
We don’t have cash flow issues and haven’t since Scholor sold the club.
robp135
Gudni Bergsson
There won’t be interest on the transfer debt.
Bedfordspurs
Bert Smith
And that’s where we need to be smart
Inter won’t pay the money we want for Citi
So offer them a loan deal with an obligation for the fee so they have 2 years to get the cash accounted for
Bedfordspurs
Bert Smith
We have massive cash flow issues
I’ve been saying that for some time
Our debt for transfers was very very high and was running’ around £250m payable a season for the last few and is likely still around that
Then borrowed the money to help with cash flow and it was a short term expensive loan
robp135
Gudni Bergsson
Based on Tottenham Hotspur's 2024/25 accounts (year ended 30 June 2025), the club's transfer obligations are:
- Transfer fees owed to other clubs (trade creditors): £135million
- Transfer fees receivable from other clubs: £61 million
- Net £71million
Bedfordspurs
Bert Smith
That isn’t what Kieron maguire has been sharing for some time
I’ll see if I can find it
Maybe that’s where all the cash went as we did go from £180m in the bank to about £20m
robp135
Gudni Bergsson
Muttley
Chris Armstrong
Not the debt itself but if you pay an instalment and use an overdraft facility then there's definitely interest. If you secure a loan to pay the instalments there will also be interest. I'm hoping we do cover our payments based on cashflow though. We clearly won't if we over expose ourselves and don't recoup player sales.
robp135
Gudni Bergsson
I will maintain the does not have cash flow issues. Borrowing cheap money is a standard procedure for large companies….fwiw my job is negotiating loans for large companies.
Muttley
Chris Armstrong
OK, so a little less than I googled. It is still 13 months old information though at this point. What has the £71m become by the June 26 as we closed the books? The equation that is JPvH + Tonali + Fernandes + Gallagher VS Son + Johnson + Vuskovic + Devine + Lanks vs Veliz implies that it has gone up by £150-200m right?
It is now nowhere near £71m unless I'm missing something.
robp135
Gudni Bergsson
Where I beleive you have got mixed up is that in the last reports our net transfer debt owed was £242.8M. So in range of £250M mentioned by @Bedfordspurs but that is not what is owed this year it’s going to be over a period of 3-5 years.
But it’s important understand that transfer instalments as trade creditors, not financial debt. If you run a yrestaurant you need to have tables, chairs, cutlery, kitchen equiement, refrigerators etc which often get purchased in installments. That’s how transfer fees are treated while the salaries are treated as expenditure.
Even then if we assume the transfer debt is not in the £400M mark based on this summers high spending. Add it in to the stadium and infusatrucure debt of about £600M. That takes debt to £1Billion.
Sounds like a scary number but we make £600M+ a year in revenue.
Imagine you make £60k a year after tax. So £5k per month.
• Transfer Fees - You have a car financed over 5 years that’s worth £40k. It costs you £850pm
• Stadium Debt - You have a 30 year mortgage on a house thats worth £60k per year. It costs you £500pm
Are those keeping you up at night?