Football finance expert Stefan Borson explains how winning the Europa League final has left Tottenham Hotspur and Manchester United with contrasting cash flow situations ahead of a crucial transfer window for both clubs.
Both Spurs and United have had shocking campaigns domestically, and both clubs will be determined to get back in and around the top six next season, which is where they belong.
It has been well documented that neither club are in a strong position financially, with some outlets claiming over the last few months that Tottenham have to sell before they can buy this summer.
However, winning the Europa League has changed the North London club’s fortunes, with Tottenham’s coffers expected to be boosted by around £180m, owing to their participation in next season’s Champions League.
Stefan Borson says Tottenham’s cash issues have been solved for now
Borson has now pointed out that, unlike other clubs across the Premier League, the main financial issue facing Man United and Spurs has not to do with PSR or revenue, but rather their cash flow and inability to raise any more debt.
He explains that Tottenham Hotspur’s problem has been solved as a result of the huge financial boost they will now receive, but the Red Devils remain in a very bad position.
Borson told Football Insider: “With Spurs and Manchester United, you’ve got the capturing of additional cash flow. Both teams appear to have issues. Forget PSR, revenue and profit from an accounting perspective.
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“From an actual cash perspective, actually having the money to go and do the things that you need to do to pay for players and for transfers, both of the clubs seem to have an issue with cash at the moment and find it quite difficult to raise money from third-party sources.
“They have both got individual issues with respect to that, but both of them don’t seem to be able to raise any more debt. They have both got individual issues with respect to that, but both of them don’t seem to be able to raise any more debt. This will be good for Tottenham Hotspur because this will mean that they’ve got the cash.
“Obviously, it’s tricky if you’re United because they won’t have the cash that they would get from Europe. By cash, I mean money coming through from prize money and also people literally paying through the gate for those games through direct debits, credit cards etc.
“That is cash that comes into the club that you can then spend and that you don’t need to wait for down the line. So, it’s good for Spurs and bad for Manchester United.”
Tottenham are expected to flex their financial muscle this summer
It has been reported over recent days that Spurs are ready to make some statement signings this summer after sealing Champions League qualification.
Tottenham’s recruitment department is expected to prioritise adding proven experience to their ranks as the Lilywhites aim to build a strong enough squad to deal with the rigours of Champions League football.