Tottenham need to generate funds to back Thomas Frank in the summer
Tottenham need to be proactive in the transfer window as they look to kickstart a new era under Thomas Frank. The Lilywhites endured a dismal Premier League campaign, finishing just a place above the relegation zone. The poor league position also resulted in huge financial constraints as the North London club incurred a loss last season.
However, the Europa League success saved the club’s blushes in more ways than one. Not only did it ended the club’s long-standing trophy drought, but it also ensured that there was a huge influx of cash heading their way for the summer. It was reported earlier that Spurs approximately earned £70m after getting over the finish line in the final against Manchester United.
Now, the North London club must do everything they can and back Thomas Frank in the summer if they want to succeed under the Danish tactician. Daniel Levy has not made matters easy for himself as he put out a bold statement suggesting that the Europa League success was not enough, and Spurs will now aim for the Premier League and the Champions League in the coming years.
Tottenham chairman Daniel Levy may find it tough to finance the club in the summer
Tottenham are already under a lot of scrutiny as fans did not like Daniel Levy’s decision to sack Ange Postecoglou just two weeks after the Europa League success. Not only that, but many are now hoping that the Spurs chairman puts the money where his mouth is and back Thomas Frank in the transfer window.
However, finance expert Stefan Borson has pointed out the difficulties Daniel Levy would face in financing the club in the summer. Speaking to Football Insider, Borson said,
“My understanding from conversations that I’ve had is that even if they wanted to, Spurs are limited in that they’ve got the Champions League money, it’s going to be really important. But they are restricted by both banking covenants in terms of what they can spend and what they can lose profit-wise, and also cash.”
The finance expert added,
“Daniel Levy is a very wealthy individual by virtue of his stake in Tottenham, but it’s paper assets and wealth. He’s not crystallised it, so he’s obviously taking very nice money as a salary over the years and he’s clearly very wealthy, but most of his wealth is wrapped up in the shares of Tottenham, which are not a liquid asset.
“I guess he could go to a bank and borrow, using it as collateral. If he’s not prepared to do that, then he’s not in a position to put money into the club either. They are limited by both of those things.”
Stefan Borson has suggested that Tottenham only have the Champions League money to spend in the summer as they are restricted by bank covenants. The finance expert adds that Daniel Levy’s stake at the club is paper assets and wealth, meaning all his money is through shares and it is not liquid asset to spend. Borson also points out that the club chairman could use his shares as a collateral in the bank, but Spurs might struggle for cash if Levy does not decide to do that.
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Now, fans can only hope that the Lilywhites manage to find a way to generate funds in the summer to invest in the squad. The North London club must try and sell some of their underperforming players, and use the income generated from that to bring in new arrivals. But, it is not as easy as it sounds, and Daniel Levy must be proactive in the transfer market to deliver on his promise of backing Thomas Frank.