Because we've been investing in the stadium and training pitch. If a new owner came in they can pay off the debt and fund the hotel etc.. no problem (partly why i'd like new owners). But they can't invest in players.
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Spurs new investment
- Thread starter spurs8
- Start date
Because we've been investing in the stadium and training pitch. If a new owner came in they can pay off the debt and fund the hotel etc.. no problem (partly why i'd like new owners). But they can't invest in players.
Finney Is Back
Luka Modric
So going back to your initial point to Bishop then....
Do you now agree that your statement was incorrect and that we actually could have owners that invest their own capital to fund players?
No. They can't invest in players. They can invest in infrastructure. Womens and academy but not in first team players. That is limited to a percentage of our turnover.
To your point that we haven't been close to that number i'd suggestthis season we were getting closer. You also don't want to be at 70% as then you have to sell to buy. You can't react.
Also we don't know if they'll be overspend for the new pl rules.
Edit - forgot about the sale of kane this season. But you can't rely on players sales of £100m every year.
Clubs are allowed lose 105m over three years. 15m of that is from the clubs finances. 90m can be invested by the owners through a shares issue.
So owners can invest and it can be used for player purchases but it's not a huge amount.
New rules are coming in.
Bedfordspurs
Mark Falco
Because he is old and he can
Finney Is Back
Luka Modric
*sigh*..,. Yet, at present we don’t operate close to the limit due to the club not having the cash position. So, at present and, likely in the future our owners could inject funds to be spent on players.
Finney Is Back
Luka Modric
So he can be buried sharing his coffin with 20,000,000 100 dollar notes?
Finney Is Back
Luka Modric
Isn’t it actually 90% this coming season, 80% the next season and 70% the season after that?
Because we've only just started spending in the last couple of years. The amortisation builds up. We'll spend this summer but the transfers of romero, johnson, maddison, vicario... will all count to the amortisation.
If we get to the limit like Saudi Sportswashing Machine we'll have to sell to buy. Which is dangerous as your amortisation keeps going. All clubs will have to find a balance.
80% this year (measured jan till dec so they can punish teams the following season). Next jan it will be 70%.
Finney Is Back
Luka Modric
With overspend allowed as well…. (Not that we’ll even get close to the 80 or 70% numbers)
The overspend for uefa is very vague. It's £60m (which would still be within our turnover). Says over 3 years but not sure if that is rolling or a one off. The measuring period though is a year.
The punishments state for going over the %. You get one punishment for first breach (depends on how bad the brach). Subsequent breaches the punishments get hsrsher.
The prem we don't know. Only the figure of 85%. They'll be presented and voted on this month i believe. To be brought in 25/26 season.
Yes, but as it stands now 90m could be invested through a share issue and it could be spent on players without breaking any rules.
We have room to spend. We have to abide by both uefa and prem rules though. Uefa it's currently 80% of turnover can be spent on amortisation and wages. We're currently around 60%. Next year that drops to 70%. There is an overspend but it is difficult to understand how that will work.
The way amortisation works though it can build up.
Say in year 1 you bought a player for £50m on a five year contract. Your amortisation for year 1 would be £10m. £50m ÷ 5.
Year 2 you did the same. Your amortisation would be £20m.
3rd year £30m...
We started spending big in the last 3 years or so. Our amortisation is going up pretty quick.
alekaras
The ITK of IDK
True on both counts. But even within a ESL the more successful teams will be more valuable. And the more successful teams would be able to charge more for direct streaming. The value growth potential becomes so much bigger when there is success on the pitch and consistent challenging for the top prizes. Any owner that seeks to maximize the value of their club will drive towards success on the pitch. The prudent ones will do incrementally, however, and that takes time.
Personally not sure about streaming. Think it's a bit overblown on the potential.
At the moment sky and bt make a loss on football. But make it up on broadband deals. You get sky you often get the broadband too.
Also the numbers of people that watch the prem around the world. It's a lot. But how many would pay seperately for it? A lot of people in this country watch la liga etc... because it's on sky sports. If it moved to streaming would yhey pay for it? A few might but not many. Americans buy nbc for the basketball etc... but if soccer is on they might watch that too. Get into it a bit. But would they pay seperately for it?
alekaras
The ITK of IDK
Getting to the next level is not risky if you are doing it in a financially sensible way. But it also means it takes much longer. And also bear in mind that there will be setbacks and the progress will not always be linear (e.g. hiring the wrong manager). I would rather be in our position than Chelsea's, who just splashed £1 billion over 3 transfer windows and are hoping it pays off, even if it would have felt more exciting.
alekaras
The ITK of IDK
It's not going to keep going up indefinitely, though. At some point it will level out and then increase very incrementally, unless we make several big money signings all at once and don't sell anyone for any significant fee. But I think we already are at the "leveled out" point, what with the numerous signings we have made in the past few years that are still in the amortization phase. From this level I would expect a moderate increase that should keep us well within the rules and still allow us to spend.