And we are making a loss based on amortization of player purchases. Please explain how we are not making a loss. If we didn’t amortize player purchases, we’d have to expense it all in one go at the time of purchase or in increments with whatever the payment schedule was. It’s still an expense and a payment that is leading to less money and a loss.
-
The Fighting Cock is a forum for fans of Tottenham Hotspur Football Club. Here you can discuss Spurs latest matches, our squad, tactics and any transfer news surrounding the club. Registration gives you access to all our forums (including 'Off Topic' discussion) and removes most of the adverts (you can remove them all via an account upgrade). You're here now, you might as well...
Latest Spurs videos from Sky Sports
Yeah, it's a loss.
The club can't make a profit at current levels of player investment outside the Champions League, but it can't be in the Champions League without spending more money.
And so Levy gets into bed with the ESL, agitates to sabotage City, etc etc.
But at the end of the day Levy and ENIC don't believe in the economics of this business anymore, and so it's time for them to walk away with their multibillion pound profit and put the business in the hands of someone with a view to the path forward before the club's value starts declining.
Amortisation and financing(actually paying for( are different things. On your accounts you buy a player incrementally over the length of his contract, whether you pay it all upfront or not
You are embarrassing yourself here and clearly have a less than firm grip on finance
I think it all comes down to the law of diminishing returns for Levy. Unless you strike some magic like Leicester did or we almost accomplished with the CL final, the cost of winning a title or a major tournament isn’t worth the revenues derived from it. On top of that, it’s still no guarantee of success.
The sweet spot is a competitive team and CL qualification, but any higher than that is too expensive.
I think for the first time he realises the importance to fans and players of winning a trophy. Now what is he going to do about it. I think it was Mourinho that stated there was little reward in his contract for winning a trophy compared to big bonuses for CL qualification. That is why successive Managers have played weaker teams in the domestic cups. 7 changes against Preston but whilst it worked that time it does not mean we can take the same liberties with Sheff Utd. However unless Levy spells it out to Conte we need to win a trophy that is likely to happen and we may suffer another 5th round exit to a Championship team.
What Levy sees clearly now is what we all see: the bar to top 4 has been sent into the stratosphere by Newcastle and the end of United's nervous breakdown.
And of course his dream is some flavor of cost control that would bring ENIC's methods back into play. The problem with that is it would bring the entire league back into play on the same basis.
The moment when Spurs had the jump on our competition has passed, we blew it.
Yeah this is a fair point. Effectively winning the league is gonna be very difficult for reasons that have been mentioned loads on this forum.
It's that catch 22, on the other hand would you rather compete in 11th each season, be pretty mediocre with no real ambition and win a League cup once every now & then or consistently compete in the top 6 teams in the league with the joys of getting European Football regularly but still the hope of a trophy. I know which one I'd choose.
Trophies are a good barometer of success, but in most competitions it's normally the luckiest team. 3 of the 4 trophies available in a season are knockouts. Anything can happen.
Yes, the point is you could count it as an expense one way or the other. If we pay 40m for a player in 2019, you either amortize it and it’s 10m for 4 years or it’s a 40m expense up front. You can’t count the transfer cost of 40m as an expense and also amortize it at 10m a year. It’s one or the other.
Therefore, amortization is real money that is being lost at some point, not imaginary money as some have said.
Realistically, from Levy’s seat it’s the right call. Winning a FA cup will delight the fans and sell some commemorative shirts and memorabilia, but it can’t hold a candle to what a CL spot can offer. I don’t believe for a second that Levy doesn’t care about our lack of trophies, but it’s not his primary driver for how to operate either.
I think it is the first time I can recall him talking about it. He cannot like the ENIC out chants at the matches and winning trophies will reduce that.
While I am more disappointed with ENIC and Ley than ever, that’s why I say that if I’m Joe Lewis there is nobody I’d rather have running my investment than Levy. He’s been able to unlock maximum profit and valuation growth with a focus on the sweet spot from a financial investment.
From a football first perspective, it’s all a bit of a mess.
I do think they are trying to rectify the footballing side of things because I agree, everything about it was abit all over the place. They've admitted that mistakes have been made especially with buying certain players for big fees.
Things look to be in a much better place now with recruitment especially. Just hopefully they can tie Conte down and sign Kane up.
You make your own luck, it's almost always the richest clubs that win things.
Our revenue increased, isn't that the FFP metric?
If not Leicester, the club I view as being one of the worst run in terms of finance, are fucked.
E
At a push it's a loss of overall profit.
Losses put companies out of business. If we've made a loss we're fucked.
Explain how we have lost money then Einstein?
At a push it's a loss of overall profit.
Losses put companies out of business. If we've made a loss we're fucked.
And yet, a trophy drought causes all sorts of problems that are ultimately reducible to the balance sheet.
And of course we've all got our savvy insider business hats on in this discussion because that's how we signal high status to each other on the internet.
But "The Game Is About Glory" was literally printed on the fucking stadium.
And that's why ESL was the last straw for me with Levy. The weaknesses in the ENIC business model could hypothetically be fixed. The lack of a single sporting bone in Levy's body can't, and seeing the depth of his cynicism and the extent of his blindness revealed in that episode told us everything.
Not really, companies can go for years making losses, if you have cash and credit it's not necessarily a problem.
So are we all getting a free pint and a pie for being great supporters?
Finances would have looked a lot better if we had a stadium sponsor these last few years , no one can deny Levy is a good business man , however there is no excuse for not having a stadium sponsor these days!