UK time is: 17:59:19
Vital Login
Social Login

Choose your club

Other Sites

Network Navigation

Vital Partners

'If It's Football, It's Vital'

Its all about money

The two current ongoing transfers the club is struggling to finalise are both, in different ways, all about money.

In the case of Adebeyor its about a club being held to ransom, in the case of Modric it may be about exchange rates and the Spanish economy. I said all last season that whatever happened to Ade there was no way he was going to lose money on the deal.

Now, it appears, having agreed a deal with Spurs Ade is demanding City's 5m transfer fee to make up the shortfall in earnings. The problem for City is there is no way out, 5m is 28 weeks wages, keep Ade another year and it costs them even more. Indeed keep him one more week, making 6 weeks of the transfer window, and it will have already cost them a million.

Even if another club made a better offer it wouldn't necessarily help, Ade doesn't have to agree a move. If I was cynical I might think Levy was quite happy with the current situation, its hard to see how City can win and every week Ade remains on their books is a week off our wage bill.

I have no sympathy for City, they didn't have to offer the player such an obscene amount of money. I do wish it would give some of our supporters pause for thought though before they moan about the club not giving players huge pay rises, wishful thinking I know.

The Modric sage is confusing but one thing to note is that sometimes stories quote the fee in Pounds, sometimes in Euros. This doesn't matter as long as exchange rates are stable, only they're not, the Euro has dropped about 10% against the Pound over the past 12 months. That would still not be a problem in a cash up front deal, you know the exchange rate on the day. Problem is that Real want stage payments, which immediately means one side or the other has a currency risk.

If the deal is in sterling then Real run the risk of the pound strengthening against the euro, if the deal is in euros then we run the risk of getting less than we thought. From Levy's behaviour I get the impression the deal would be in Euros. There is a further risk, what if Spain dropped out of the Euro altogether? It may seem a remote prospect but given the state of the Spanish economy (25% unemployment and a collapsing banking sector) it could happen.

If you were owed money by a Spanish club in a currency that either they no longer belonged too or no longer existed would you ever get paid?

To me it makes perfect sense for Levy to want to get paid for Modric up front, debts stretching out over several years are not a good idea in the present economic climate.

Written by jod




Use your social login to comment on front page articles. Login using you Facebook, Twitter, Google or LinkedIn accounts and have your say!



Click here to join in the debate on the club forum.

The journalist

Writer: Jod Mail feedback, articles or suggestions

Date:Monday August 6 2012

Time: 8:54AM

 

Have Your Say

Log in...
with your social network     OR     with your Vital account

Recent Spurs Articles

Is Tom Back In The Game? (Tuesday March 31 2015)

Best of a Bad Bunch? (Tuesday March 31 2015)

Transfer Strategy (Monday March 30 2015)

THE MAN WHO CAN DO NO WRONG! (Saturday March 28 2015)

Decision Time For Dembele? (Thursday March 26 2015)

Back the Man in White! (Thursday March 26 2015)

Rose Out Of England Squad! (Thursday March 26 2015)

Zero Net Spend. (Wednesday March 25 2015)

Another Man`s Misfortune. (Tuesday March 24 2015)

Archived Spurs Articles

List All Vital Spurs Articles
Have your say
Click here to suggest an article
Click here to suggest a poll
ScoopDragon Premier League Network Sites

Vital Members League (view all)

1. Spursex 498
2. Highgatespur 443
3. Real Deal 272
4. oxfordspur 231
5. 80deg16minW 220
6. MAN ON! 218
7. spursgirl_4_life 192
8. Spurfect11 171
9. Jables 169
10. raphaellau 167

League Results (view all)

Latest Results
Spurs 4 - 3 Leicester City
Man Utd 3 - 0 Spurs
Q.P.R. 1 - 2 Spurs
Spurs 3 - 2 Swansea
Spurs 2 - 2 West Ham
Liverpool 3 - 2 Spurs

League Table (view table)

Team P W D L GD Pts
4. Man Utd 30 17 8 5 25 59
5. Liverpool 30 16 6 8 12 54
6. Southampton 30 16 5 9 21 53
7. Spurs 30 16 5 9 5 53
8. Swansea 30 12 7 11 -4 43
9. West Ham 30 11 9 10 3 42
10. Stoke 30 12 6 12 -3 42

Breaking League News

Ooh Saucy!
Man Utd : 31/03/2015 17:31:01
United Set to Welcome Back Van Persie
Man Utd : 31/03/2015 17:26:00
Mata's Spanish Hope!
Man Utd : 31/03/2015 17:20:01
Twist In McClaren NUFC Link
Newcastle : 31/03/2015 16:26:00
Naismith Bigs Up Fletcher After Hat-Trick.
Sunderland : 31/03/2015 16:06:01

Current Site Poll (view all polls)

Will Tom Carroll be a part of the Spurs squad next season?
Suggested By:  Vital Spurs
Yes 55%
No 25%
Unsure 20%