‘Look at the numbers’ – Tottenham’s owners have just made ‘a statement of intent’
Tottenham’s cash injection is only positive for the club, although manager Thomas Frank has been warned it may not be used in the transfer market.
That is according to football finance expert Dan Plumley who has exclusively told Football Insider where a £100million cash injection at Spurs is most likely to be spent.
It comes after Tottenham stated it was not for sale after Executive Chairman Daniel Levy left Spurs after nearly 25 years in the role.
Levy’s time at Spurs only brought two pieces of silverware to north London, and this cash injection may show a new ambition from the club moving forward.
Thomas Frank ‘unlikely’ to see any increase in transfer funds
Speaking exclusively to Football Insider, Plumley thinks Spurs will use their cash injection in other areas of the club rather than giving it straight to Frank to spend in the transfer market.
“Whenever an ownership group does this it’s a positive, first thing to mention is that money has gone in as share capital so its cash injection to put some more shares in and increase ownership stakes,” Plumley explained.
“What that means is that the owners can’t get that money back, it’s money that the club can use. It’s a statement of intent from the owners, they’re financially committed to the club.
“Looking at the numbers behind the scenes it’s unlikely that it goes straight into the transfer market. Spurs owe a lot of money on existing transfers already and there is money sat on the books at Spurs where they owe money to other clubs for previous transfers.
“We know they’ve still got some stadium costs and some interest attached to that albeit it on a low rate, but you’ve still got costs to cover. What’s most likely with this injection is to do some of that stuff.
“Certainly, the other clubs that they owe money too would be something they want to get down in the future, so I guess in the likelihood that injection goes into covering some of those operational costs rather than straight into the transfer market.“
Champions League to help revenue streams
The club are already on course to earn extra revenue this season thanks to winning the Europa League last season and therefore qualifying for the Champions League.
“Spurs will be boosted by Champions League revenue this year which is a decent amount of money for a Premier League club given the market coefficient so they’ll have revenue coming in over the top this year as well that will boost that,” Plumley said.
Spurs have earned victories in both their opening league phase matches in the competition this season, with clubs earning more money for each game they win.
Currently, sitting third in the Premier League table, Frank has made a positive start to life at the club as they look to retain their place in the competition for the next campaign.