‘Levy doesn’t have the cash’ – Tottenham’s spending struggles explained

Tottenham need to raise money to sign any new players this summer, and it won’t come from Daniel Levy. That’s according to football finance expert Stefan Borson, who says Spurs will need to sell some of their stars or benefit from a cash injection to strengthen their squad ahead of the new season. Daniel Levy doesn’t have the funds to invest in Spurs, says BorsonAFP Ange Postecoglou is feeling the heat with Tottenham sitting in 16th position in the Premier League table. That means winning the Europa League is the club’s only hope of securing European football next term with the winners of the tournament earning a back door route into the Champions League. Qualification would certainly boost the club’s coffers and offer them extra funds with which to do business. As it stands, Spurs are able to spend around £200million this summer without breaching PSR rules. However, for the club to do any significant transfer business the onus will be on the club to raise funds – whether that comes via player sales or a cash injection from the club’s stakeholders. Asked if the news of Tottenham situation surprises him, Borson told White and Jordan: “All it does is confirm what Simon said a few weeks ago about cashflow. “You have to separate a few things including Financial Fair Play – they’re clear on PSR and so there’s no issue there. “From a budgetary perspective they’re £30m or maybe £40m down on where they’re expected to be. They could finish 17th and they probably expected seventh as a worst case – they’re ten points off and so they’re £30m off their budget for merit payments. “Of course they may get Champions League but if they don’t then they have a huge hole in the P&L [profit and loss] for next season as well because I expect that they budgeted for at least Conference, maybe Europa, and that might have been worth £20m for next season, but there’s going to be a zero if there’s no Europe at all. “So you’ve got the PSR situation, the budget situation and then you’ve got Simon’s point which is all about cash. Tottenham are facing the prospect of a must-win Europa League clash Victory would send them through to the Europa League final – one match away from next year’s Champions League “It’s all well and good having this capacity but actually if you don’t have the pounds and pence for what’s due which is around £250m in historic transfer fees, instalments on those, the wages, the debt service and the running costs to the club. “They are very, very significant here. “Daniel Levy is not in a position to put any more money in. He’s a very wealthy guy because of his holding of shares, but unless he sells those shares he doesn’t have the cash to put into the club. “That leaves the Lewis Trust – not Joe Lewis himself – the Lewis Trust being effectively the only funder around for Spurs from a cash perspective because they can’t raise any more debt. “On top of that, they potentially have some covenant issues and so the problem they’re going to have is nothing to do with Financial Fair Play, it’s to do with actual cash. How do they actually pay for things? “Unless they either raise money from one of their shareholders or sell some footballers, they won’t have the cash to pay for new footballers.” Richarlison is one of a number of stars who could be soldGetty Borson added: “When we talk about selling players, they don’t have to be selling their best players for cash. It’s not a case of needing to make a profit on Richarlison, for example. “They could afford to sell Richarlison for a loss from a financial PSR perspective. “If they sold him to Saudi for £20m, that would still give them what they need in terms of the £20m and of course they’ll have to take the impact from a P&L perspective – profit loss – which they can absorb. “It’s not a critical situation from a survival of the club point of view.” Tottenham’s Europa League fate will be decided within the next two weeks as they face Bodo/Glimt for a place in the competition’s final – starting with the first leg on home soil on Thursday.

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‘Levy doesn’t have the cash’ – Tottenham’s spending struggles explained

Tottenham need to raise money to sign any new players this summer, and it won’t come from Daniel Levy.

That’s according to football finance expert Stefan Borson, who says Spurs will need to sell some of their stars or benefit from a cash injection to strengthen their squad ahead of the new season.

Daniel Levy doesn’t have the funds to invest in Spurs, says Borson

Ange Postecoglou is feeling the heat with Tottenham sitting in 16th position in the Premier League table.

That means winning the Europa League is the club’s only hope of securing European football next term with the winners of the tournament earning a back door route into the Champions League.

Qualification would certainly boost the club’s coffers and offer them extra funds with which to do business.

As it stands, Spurs are able to spend around £200million this summer without breaching PSR rules.

However, for the club to do any significant transfer business the onus will be on the club to raise funds – whether that comes via player sales or a cash injection from the club’s stakeholders.

Asked if the news of Tottenham situation surprises him, Borson told White and Jordan: “All it does is confirm what Simon said a few weeks ago about cashflow.

“You have to separate a few things including Financial Fair Play – they’re clear on PSR and so there’s no issue there.

“From a budgetary perspective they’re £30m or maybe £40m down on where they’re expected to be. They could finish 17th and they probably expected seventh as a worst case – they’re ten points off and so they’re £30m off their budget for merit payments.

“Of course they may get Champions League but if they don’t then they have a huge hole in the P&L [profit and loss] for next season as well because I expect that they budgeted for at least Conference, maybe Europa, and that might have been worth £20m for next season, but there’s going to be a zero if there’s no Europe at all.

“So you’ve got the PSR situation, the budget situation and then you’ve got Simon’s point which is all about cash.

Tottenham are facing the prospect of a must-win Europa League clash

Victory would send them through to the Europa League final – one match away from next year’s Champions League

“It’s all well and good having this capacity but actually if you don’t have the pounds and pence for what’s due which is around £250m in historic transfer fees, instalments on those, the wages, the debt service and the running costs to the club.

“They are very, very significant here.

“Daniel Levy is not in a position to put any more money in. He’s a very wealthy guy because of his holding of shares, but unless he sells those shares he doesn’t have the cash to put into the club.

“That leaves the Lewis Trust – not Joe Lewis himself – the Lewis Trust being effectively the only funder around for Spurs from a cash perspective because they can’t raise any more debt.

“On top of that, they potentially have some covenant issues and so the problem they’re going to have is nothing to do with Financial Fair Play, it’s to do with actual cash. How do they actually pay for things?

“Unless they either raise money from one of their shareholders or sell some footballers, they won’t have the cash to pay for new footballers.”

Richarlison is one of a number of stars who could be sold

Borson added: “When we talk about selling players, they don’t have to be selling their best players for cash. It’s not a case of needing to make a profit on Richarlison, for example.

“They could afford to sell Richarlison for a loss from a financial PSR perspective.

“If they sold him to Saudi for £20m, that would still give them what they need in terms of the £20m and of course they’ll have to take the impact from a P&L perspective – profit loss – which they can absorb.

“It’s not a critical situation from a survival of the club point of view.”

Tottenham’s Europa League fate will be decided within the next two weeks as they face Bodo/Glimt for a place in the competition’s final – starting with the first leg on home soil on Thursday.