Finance expert Stefan Borson believes Tottenham Hotspur are financially strong enough to weather the impact of terminating Tanguy Ndombele’s contract, despite the substantial financial outlay involved.
Ndombele joined Spurs in 2019 for a club record fee of £54 million, which could rise to £63 million with add-ons. However, the French midfielder failed to live up to the high expectations, becoming one of the club’s most disappointing signings in recent history.
Over the past few years, Ndombele spent time on loan at various clubs, but none opted to sign him permanently.
Having no other option, the club decided to take a financial hit and ended up agreeing on a pay-off worth £5m with the player to terminate his contract.
According to Borson, terminating Ndombele’s contract will not significantly affect Tottenham’s finances.
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.
He 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.“
TBH Says:
This shows just how strong financially Daniel Levy has made Spurs. He often comes under fire for not spending big on transfers and for his decisions being more financially focused.
However, it is time likes these when every other club is struggling to adhere with the Financial Fair Play and Profit and Sustainability Rules when you can appreciate Levy for making the club financially strong enough to not worry about it.
