Date: 7th November 2017 at 10:55am
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Squad valued above ?1 billion.

Our owners must have smiles the length of the new CrossRail. That is if they have taken any notice of our latest squad valuation by CIES Football Observatory

CIES have written their own player value Algorithm and they also track the historical values of players.Their approach has led to a staggering squad valuation of ?1,173 billion.

It now rates us as the second highest summary player values in EUROPE.
It`s a staggering valuation, but given the utter madness in the summer transfer window, perhaps not as shocking or surprising as it once would have been.

I recall two seasons ago predicting that Harry Kane was being spoken of by agents as a potential £100 mill transfer – at the time more than a few posters in the forum believed I`d been on the wacky baccy, if not about to be committed to the nearest institution for the mentally deranged. (Punches aren`t pulled in the forum!).

But as I don`t smoke, and my mental issues had been recently resolved, I was certain that one more season like the one before and this projected value was entirely realistic. Harry didn`t let me or us down.

After last summers spending that so upset Barcelona and forced a massive hike in all prices, £200 mill or even more for Harry could well be coming into view. But does it really matter if you don`t sell?
The reality with these squad values is they can be as transitory and comforting as the balance in my bank account; when it`s fully loaded and my investments are performing, it`s a joy to behold, when the markets are going against you and the assets not performing, it`s like planning your own funeral; an experience you don`t want to repeat too often.

Financiers won`t be paying too much attention to squad values, anyone with any sense will know that an asset that isn`t performing is a on a downwards glidepath, and every players valuation can go up and down like my serious first girlfriends` undergarments.

Yet whilst these heady days of fighting at the top of the Premier league and the Champions league continues, academic exercises in what the squad might be sold for can only act as an indicator of our almost relentless progress and that should be welcomed. Outside cold evaluations of progress never hurt.

If Poch had been a genius with foresight, just think what a bonus he`d be in for if he`d negotiated a percentage of the clubs increased valuation from when he took over.

Phew, it would be a mighty sum.

Now ALL we must do is reflect this apparent financial success with success where it matters; something I suspect will need more than just a clever algorithm.

All of a sudden, I regret we aren’t traded on the stock exchange anymore…..

Now how`s that Bitcoin doing? Anyone know? Where’s it heading next?


18 Replies to “Utter Madness.”

  • Its like house prices, if the house you are selling doubles in value and so does the house you are buying are you any better off ? Insofar as the increase in the value of the squad reflects increases in the value of footballers generally its meaningless. Having said that we have clearly done something right in terms of developing players. Its allowed us to punch above our financial weight and long may it continue.

  • Whilst the squad is probably not worth a billion, it does show the subtlety in football finances. Football players are intangible assets on a balance sheet that amortise over the life of their contracts and on the 2016 financial report Levy had them valued at £98.4m. Compare that to property, plant and equipment on the same balance sheet valued at £288m. Hence why we can keep a player like Walker for almost a decade, never have to re-value him on the balance sheet and then create huge profit on his departure. Companies like CIES Football Observatory can value players at what they want but it just isn’t how football finances work.

  • muttley – Actually you do revalue a player every year. What you do is write down the transfer fee over the length of his contract so that if his contract runs out you should have written his value down to zero. The sums all need to be recalculated if he signs a new contract. Not sure what happens with a player that we don’t pay a fee for. This is just normal conservative accounting, not really peculiar to football. The problem with showing what you think is a player’s true value in the books is its just a guess. Accountant’s don’t like guesswork. Of course if a player chooses to run down his contract then he really will be worth nothing, to us anyway. Plant and machinery will be written down in a similar way over its expected working life. Land is a bit different, it doesn’t really depreciate.

  • jod, nice analogy with houses. But we (Spurs) generally don’t buy houses that have also doubled in value. We buy that require a makeover to become habitable and increase the value. It’s something I have always been keen on as I envied the likes of Southampton who over the years have discovered some gems by amazing scouting and development and to cash in on their prized assets and keep adding more potential. I always asked in the past, rather than paying over the odds for fully fledged players, why can’t we discover our own future stars….that need googling!? Here we are even our academy graduates who don’t make the grade have eye watering valuations. Nabil, Mason, AT and even a developed Wimmer has helped us add to our coffers handsomely. It is now all about of retaining the core valuable assets. The model is working very well and we all hope the player valuation equates to a trophy haul.

  • When the “they have more money than us” excuse is used as to why spurs haven’t won a trophy so far under MP, i have always thought that spurs had more than enough quality to win with what they have spent. have been the biggest spenders and have not won the league for 4 seasons. It’s not all about spending but how you spend it.

  • IMO….This current squad of Spurs players have not won a trophy in last 3 years. True and that is their problem of messing up the chance (yes Danny Rose you too) in 2 Premier League seasons, and in Cups, like Europa League last year. Levy has backed Poch in transfer choices, so Poch has to share his part in this dismal silverware return. Now squad players & manager are stronger and more experienced it is logical we will win something this year. COYS

  • The problem with adding assets to your balance sheet is that they are accounted for, on purchase, through your Income profit and loss statement, and increasing the value of an asset already on your balance sheet produces a boost to your income/profit/ AND tax liability.

  • As I posted on another thread, what striking to me is that we’re second on this list (whatever the importance that you want to attach to it), but we’re also the only club in the top 20 who hasn’t won a trophy in the last 10 years. Where is it going wrong if we have a team this valuable, yet have been unable to win anything?

  • palmover – looking at just the PL is short sighted. Look at all the competitions City have been involved in. Their last trophy dates from 2016.

  • BS. I don’t think city spend all that money to win a league cup, maybe i am wrong, however, i think city judge success on EPl titles and Cl titles.

  • I totally agree with BelgianSpur, the value of the squad may be something to preen ourselves and brag about, but it is totally meaningless, unless at some time you intend to liquidise the assets in the club, and I wouldn’t put that past ENIC, and you can convince somebody to pay what it is alleged is the “value” of the player/s. The fact is that this group of players and their manager have yet to succeed, to win anything, to show their true value. We as a club are way down any list of comparisons of comparable clubs as BelgianSpur says in winning anything, and success and winning honours and trophies is the only way squads and clubs are judged by history.

  • palmover – fair enough. I think it’s fair to say that City have under performed in the last 4 years based on how much they’ve spent. But looking at the last 4 years specifically caters to your point. Look at the last 10, and what their money has bought is 2 PL titles (only Chelsea and Man U have done better in that period), 1 FA Cup (and another final), 2 League Cups, 3 Community Shield appearances (1 win), and 7 consecutive seasons in the CL (going to the semis once). While it could be argued that with the money they’ve spent, it should be even more, you can’t really say that the investment hasn’t generated any results either.

  • I wonder…… If THFC were leasing the up and coming new stadium (as Man City have been doing with their own, recently ‘new’ City of Manchester stadium, all during Sheikh Mansour’s ownership), rather than needing to have spent all these years acquiring the land, getting all the complex planning issues and permissions resolved and fighting legal battles etc., then maybe Spurs would now have Aguero up front, Pep as our manager and, a stack of trophies in our cup-cabinet. – Even so, we’d all be complaining, no doubt, that we should’ve done so much better.

  • Whatever happens, the games will keep coming …. so just enjoy each one as it does. Gotta love football!

  • HT – I guarantee that if we win the PL or CL this year, you won’t hear much complaining from me. Or most Spurs fans. Objectively it’s the only real knock against the current management – albeit a very important one.

  • Nice one to return on finally. Exactly something that’s been on my mind especially last 24 hours having looked at my Shares account and seen my Spurs one’s sat there – not many but still enough to make it interesting. I did try to buy more off-market but with hindsight the offer was derisory as they would say. – then again was not today. 216 million roughly if not mistaken was the total amount at removal valued at just north of £80m with a price of under 40p a shot. The new stadium and training ground alone have to be worth a cool £1bn all day long – problem is how much of that is debt related then again naming rights and future sales are crucial also and naturally positive. Apparently we’re looking for a deal similar to Arsenal at roughly £300m over 10 years maybe. Matchday sales should top £100m a season easily just with league games let alone respective cup games. Even if it costs £750m to build, I reckon over 10 years it will easily generate double that at £1.5bn. Look at how Arsenal are doing finance wise these days, stadium, etc nicely in place and a big expensive squad all pretty much fully covered. One problem back in the day was not necessarily prices it was attracting THAT type of player, look what we paid for Rafa – a bargain, Eriksen, etc. Sometimes it wasn’t the price it was attracting the player. Which brings me nicely to a small Xmas wish that will in due course significantly increase that sum above further – Ross Barkley – Razza – when we getting him in – how do you tap players up on here?LOL!

  • Then there’s all the TV revenue and Prize Money not to mention interesting to see what goes with the stadium naming rights which one assumes has to be taken up – the most modern day stadium in the world – built on debt – be very surprised if we didn’t allocate! All falling into place nicely – top 3 finishes, most modern stadium in the world on way, already in bed with Nike who always pay top dollar so naturally will mean to take over from them will have to match – takes away a lot of the negative wrangling – look at footy shirts these days £55-60 instead of colossal £35-40 of 10 years ago or so and year on year changes away from the traditional 2 season rule not to mention 3 main strips now – marketing, marketing, marketing!

  • Like the fact it’s a nice compact quality squad – plenty of game time all around and as long as are performing well means keeping their value well and truly up!2 quality players to a position and then hope for the best with injuries especially, performance is a skill based asset. It’s almost like a Ramsay squad nightmare makeover quite frankly, almost couldn’t make it up! Be nice to see Barkley added to it on the cheap in January or if necessary on a free pre-contract for the Summer if that still exists – either way quality player and a Spurs/Poch type player.

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