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Financial expert speaks about terminated Tottenham deal and how it will affect their PSR compliance

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Financial expert speaks about terminated Tottenham deal and how it will affect their PSR compliance

Financial expert analyzes terminated Tottenham deal and Its impact on PSR compliance

Financial expert Stefan Borson spoke about Tottenham and their main financial gain in accordance with their decision to terminate Tanguy Ndombele’s contract with the club, which will be effective on June 30th. 

He explained that the club would have ended up paying more in wages had they kept him for the rest of the season. He also added that the club has enough PSR flexibility to be able to make such decisions.

Ndombele signed for Spurs in 2019 for a club record cost of £54 million, which may increase to £63 million with add-ons. However, the French midfielder failed to meet lofty expectations, becoming one of the club’s most disappointing signings in recent years.

Ndombele has been on loan to many teams in recent years, but none of them have decided to sign him permanently.

Financial expert analyzes terminated Tottenham deal and Its impact on PSR compliance
No Future: Tottenham are ready to cut ties with Ndombele.

With no other alternative, the club opted to accept financial risk and agreed to a £5 million pay-off with the player to cancel his contract.

According to Borson, ending Ndombele’s contract will have no substantial impact on Tottenham’s finances.

Borson told Football Insider:

“There are not many benefits of terminating a contract from a PSR perspective but Spurs do not need to worry about that.”

“They end up taking a write-off on his book value in this current year which will show up in the accounts as a loss on impairment.”

“It accelerates the wages as well but I assume what they’ve done is agreed a discount to what he would have been paid if he stayed for a full year.”

“So there could be a small benefit there but really I think this is more housekeeping.“

“At the end of the day, they want him out of the club and so they take the hit and move on as they have enough PSR flexibility to be able to take those sorts of decisions.“

Stefan Borson, Football Insider

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This serves as a testament to how financially robust Daniel Levy has made Tottenham. He is frequently chastised for not overspending on transfers and for making more financially sound decisions.

However, in times like this, when every other club is trying to comply with PSR, Spurs are financially secure enough to not worry about it.

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