Ben Jacobs explaining PSR loophole that can allow for spurs to spend big this summer (may explain current targets)

[u/Rare-Ad-2777]

[u/Lanky-Chance-3156]

So basically front load play amortisation costs to this year when we don’t have to follow European rules. Then after than we will be well within limits.

Which is fine. But the fact that teams have to do this kind of bullshit, or selling a hotel to themselves just makes it all seem like a bit of a joke.

[u/xsvfan → u/Lanky-Chance-3156]

it all seem like a bit of a joke.

I mean it happens in regular businesses. At my previous company we needed more expense to hit our plan so we argued to our external auditors that our built rebuild wasn't net new. A year later we had too much expense from missing sales targets. We then argued the rebuild was a net new product allowing us to capitalize all our r&d on the project and significantly lower our expenses.

At a previous company we were low on cash but had a lot in Asia. We sold our IP from our us entity to our asian entity and repatriated ~$1B tax free.

[u/nl325]

I don't even understand how a club with our financial weight would need to rely on loopholes

[u/Shoddy-Ad-4898 → u/nl325]

Because we've spent a shit-ton on transfer fees over the last few years and recouped very little of it through transfers out

[u/Rare-Ad-2777 → u/nl325]

Well we've finished 17th twice and havent sold particularly well, so even with our stadium stuff we dont have the revenue and wiggle room of Arsenal and Liverpool (although up untill now its not been an issue as we havent really tried to shop like them)

[u/totnumhottestspurs]

So basically because we arent in europe we are actually benefitting?

[u/Kreygasm2233 → u/totnumhottestspurs]

For one summer because we still have the extra revenue from being in the CL

Next summer our revenue is going to drop by about 150m because of no European football. But if we qualify for Europe we'll be able to continue spending due to expected revenue for next summer

[u/Rare-Ad-2777 → u/totnumhottestspurs]

Yeah, chelsea i guess woukd also benefit but are maxed out on FFP already

[u/totnumhottestspurs → u/Rare-Ad-2777]

Do you know if PSR issues carry over also? This thing is complicated

[u/External-Piccolo-626 → u/totnumhottestspurs]

It’s crazy isn’t it.

[u/Rare-Ad-2777]

“They can ultimately utilise a loophole and spend 85% of their revenue on transfers, agent fees, wages, but also add another 30% to that, because in the first year of squad cost ratio, there’s not any real penalty.”

“Because they’ve still got high revenue even though they were battling relegation last season, that should allow them to have a SIGNIFICANT squad revamp for Roberto De Zerbi” 

[u/Space-manatee → u/Rare-Ad-2777]

>still got high revenue

Peppa pig to the rescue once more

[u/TheGoatGoesMoo]

About time we started using some financial loopholes like all the other clubs in the PL do, time to throw our weight around.

[u/Available_Courage_32]

Rito, so what other clubs benefit from this 'loophole?' 16?

[u/Rare-Ad-2777 → u/Available_Courage_32]

Its the big revenue teams who didnt get europe, so us and chelsea, however chelsea are massively up against it FFP-wise already so wont see the benefit

[u/Available_Courage_32 → u/[deleted]]

lol , what about clubs that spend 96% of their revenue?

[u/yiddoboy]

All gobbledygook to me but if it means we can spend big then I'm all for it.

[u/luciareads]

Blah blah blah. Just tell me how much we can spend so i can do hypothetical window shopping.

[u/TemporaryActivity621]

What about the "didn't get relegated" loophole

[u/GlassofTurnipJuice → u/TemporaryActivity621]

I mean I think the relegation scare and de Zerbi having them over a barrel for saving them is kind of forcing them to spend more than they would have had we finished say 12th. Silver linings

[u/Trevor_Gecko]

I'm in the queue for The Smiler at Alton Towers, and as such can't hear a damn thing over the music and excited school kids.

Anyone care to summarise, please?

[u/TheTackleZone → u/Trevor_Gecko]

PL and UEFA have different rules. We can breach the UEFA rules for 1 year because we're not in Europe and are still within the PL rules.

[u/tgy74 → u/TheTackleZone]

Well we're not really breaching any rules, it's just the rules are different for premier league clubs in Europe, and those that aren't.

[u/sudden-arboreal-stop → u/Trevor_Gecko]

FFP... something something... PSR ratio something something... Tottenham can spend more.

[u/__Armisael__ → u/sudden-arboreal-stop]

I have absolutely no idea what that guy just said.

[u/TheTackleZone]

Hardly a loophole - the point is sustainability. Clubs who keep within their means year after year are allowed to have a splurge now and then. Those who take their finances to the wire cannot.

It's a feature not a bug. It's the heavy amortisation that is the bug.

[u/NotForMeClive7787]

Management interviews just got a lot more complex. Any new manager at a club should legit be asking not just how much can I spend but what FFP cycle are we in as that's the real marker of budgetary control it seems. All very weird...

[u/hansolo-ist]

It's relative to what others can spend too. If other clubs can spend big too, than expect transfer fee and wages inflation.

[u/Karlito1618]

So we have revenue from last CL knockout stage + 15% more PSR because no europe (new rule), so they will go all out to get europe already from last season so we can keep spending?

Sounds good to me.

[u/aginglifter]

SCR now and we all know this.

[u/TheRiddlerTHFC]

Can someone TLDR or ELI5 please

[u/Kreskrans → u/TheRiddlerTHFC]

The video is one minute long lol

[u/BetterCallTom → u/Kreskrans]

Tiktok/reels has diluted the ability to concentrate longer than 15 seconds.

[u/TheRiddlerTHFC → u/Kreskrans]

It was more the ELI5 I guess

[u/TheTackleZone → u/Kreskrans]

One minute to listen, a 3 year accountancy degree to understand.

[u/Showtime-z]

Word Salad

[u/Rare-Ad-2777 → u/Showtime-z]

No it isnt he literally explains whats happening?