By Kieran Maguire

3rd Dec, 2021 | 4:30pm

Kieran Maguire explains '£20m' deal as police probe Tottenham chief Paratici for 'FFP dodge'

The reason Fabio Paratici is under investigation at Tottenham is because of an alleged attempt to circumvent financial fair play laws.

That is according to finance guru Kieran Maguire, speaking exclusively to Football Insider about Spurs’ managing director.

The Daily Mail reported on Tuesday (30 November) that the Italian finance police have launched a probe into Paratici’s time at former club Juventus.

The transfer of Cristian Romero, who swapped Turin for North London in the summer of 2021, is among 42 Juve moves under investigation.

Paritici is accused of artificially inflating the transfer value of certain players, including the 23-year-old centre-back who cost Spurs £47million.

Maguire explained how nefarious executives can use artificial price hiking to bypass profit and sustainability rules.

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“If something looks too good to be true, it’s probably not true,” he told Football Insider correspondent Adam Williams.

“The issue when it comes to player trading is that when you sell a player, you book 100 per cent of the profits immediately.

“So if you inflate a player’s sale price, you’re going to get 100 per cent of those profits immediately. That can act as an FFP dodge.

“But if you are buying a player, the additional cost is spread over the life of the contract. This makes player swaps very attractive.

“Both parties can book huge profits on the deal and then pay for it over time.

“Let’s use the example of two £20m-rated players who you’ve arranged to swap for the same price.

Let’s assume that they are academy players so therefore it is pure profit in terms of FFP.

“Under normal circumstances, if the player signs a five-year deal, you only have £4m a year going out in amortisation. But you still get £20m in profit from the player you sold.

“Your net gain in year one then is £16m. If you artificially inflate the prices, you have a bigger immediate profit. Happy days.

Romero is currently sidelined with a hamstring issue and is not expected to return this year.

Paritici arrived at Tottenham in June (2021) and replaced Nuno Espirito Santo with Antonie Conte five months later.

In other news, Tottenham close to signing Charlie Sayers before 1 January after offer submitted.