Pre-Season: *** Tottenham Hotspur vs Real Madrid OPSFMT ***

[jimmyb]

i personally dont think it works like that. The new tv money will be swallowed up by higher wages

also think about it, up until now we have signed one player over 20 mill in Lamela, mainly because of the Bale money, and look how that has turned out. Levy is risk averse, and he will be devastated at how much money we have lost on recent big money moves

Actually, a big test will come this summer with Berahino. Lets see if we go above 20 mill for him.

It's already working like that.

You only have to look at some of the transfer activity by the Premier league's lesser lights to know it.

 

[indianspur]

It's already working like that.

You only have to look at some of the transfer activity by the Premier league's lesser lights to know it.

i was talking more about Spurs...our wage bill has gone up in line with the new tv money down the years and it will only continue.

 

[jimmyb]

i was talking more about Spurs...our wage bill has gone up in line with the new tv money down the years and it will only continue.

That's not actually true.

Our wage bill leapt in 2010-11 but hasn't gone up greatly since then (or at least, hadn't at the time of the most recent published accounts). It's why our wages to turnover percentage has dropped from north of 60% four or five years ago to nearer 50% now.

Not to mention that there are Premier League imposed restrictions on the proportion of increased TV money that can be spent on wages.

 

[indianspur]

That's not actually true.

Our wage bill leapt in 2010-11 but hasn't gone up greatly since then (or at least, hadn't at the time of the most recent published accounts). It's why our wages to turnover percentage has dropped from north of 60% four or five years ago to nearer 50% now.

it leapt that season because of the CL. I read somewhere that CL prize money goes directly to players as bonuses.

 

[jimmyb]

it leapt that season because of the CL. I read somewhere that CL prize money goes directly to players as bonuses.

Wage costs leapt from £67m in 2009-10 to £91m in 2010-11. But wage costs haven't increased greatly thereafter:

In 2009-10, our turnover was £120m. Wages were £67m or, in other words, 56% of turnover

In 2010-11, our turnover was £164m. Wages were £91m or, in other words, 55% of turnover.

In 2011-12, our turnover was £144m. Wages were £90m or, in other words, 63% of turnover.

In 2012-13, our turnover was £147m. Wages were £96m or, in other words, 65% of turnover.

In 2013-14, our turnover was £181m. Wages were £99m or, in other words, 55% of turnover.

What's important to note is that, although wage costs remained high in the years immediately following our Champions League season, revenues did not. Hence the sudden leap in the wage to turnover ratio. But when the huge, new TV deal kicked in, the relatively high wage to turnover ratio was slashed. The overall wage bill increased modestly but the wage to turnover ratio was normalised back to the magic 55% level.

If that level is maintained (and I believe that it will be, as far as possible) and assuming greater income from subsequent TV deals and the new stadium etc, then even if Spurs' wage bill will inevitably rise over the coming years, so too will the money we have available to spend on other costs - including transfer fees.

 

[Finney Is Back]

i personally dont think it works like that. The new tv money will be swallowed up by higher wages

also think about it, up until now we have signed one player over 20 mill in Lamela, mainly because of the Bale money, and look how that has turned out. Levy is risk averse, and he will be devastated at how much money we have lost on recent big money moves

Actually, a big test will come this summer with Berahino. Lets see if we go above 20 mill for him.

I don't think the new TV money is allowed to be swallowed up by higher wages. I think I am right in saying that the PL have implemented their own version of FFP that limits the amount that a wage bill can go up?.... This should actually mean there is more money available for transfers (although on the flip side that is no good if there is no wage budget left to pay them with). That is why it is so important to move on the players earning big (or even reasonable) money that are not expected to feature too often. We've made a brilliant start at this and just need to complete the job now with Adebayor, Soldado and Lennon.

In fact I think I may have just talked myself into the reason for our not yet having brought in the much needed striker/wing forward, perhaps we need Soldado or Adebayor off the books to give ourselves the wage room to bring him/them in?

 

[billyiddo]

I don't think the new TV money is allowed to be swallowed up by higher wages. I think I am right in saying that the PL have implemented their own version of FFP that limits the amount that a wage bill can go up?.... This should actually mean there is more money available for transfers (although on the flip side that is no good if there is no wage budget left to pay them with). That is why it is so important to move on the players earning big (or even reasonable) money that are not expected to feature too often. We've made a brilliant start at this and just need to complete the job now with Adebayor, Soldado and Lennon.

In fact I think I may have just talked myself into the reason for our not yet having brought in the much needed striker/wing forward, perhaps we need Soldado or Adebayor off the books to give ourselves the wage room to bring him/them in?

i haven't heard of this wage increase cap - is it reported or rumor? could go someway to explaining the situation, if true, although we should already be doing well in that respect

 

[Bullet]

In fact I think I may have just talked myself into the reason for our not yet having brought in the much needed striker/wing forward, perhaps we need Soldado or Adebayor off the books to give ourselves the wage room to bring him/them in?

FINALLY, the penny has dropped!