The first graph shows the amount paid out by Spurs to bring in new players in each season. These are the figures quoted in the accounts, not necessarily the figures quoted in the press, or on the www.soccerbase.com site. So for example soccerbase has the 12 months up to 30th June 2006 as containing £25m worth of new players, the club only say £18.8m. This may also be down to timing differences around transfer deadlines.
Over the period shown Spurs paid out £213m on new players. The 2007 figure is completely unsustainable.
As well as buying players Spurs sell them. If the amount of money they are sold for is greater than the book value of the players it is viewed as profit, and helps to reduce the net cost of bringing in new players. The first graph below shows the profit made each season on selling players, the second the net expenditure.
The graph below shows how the amortisation costs, and transfer costs have moved. The full explanation of amortisation is shown here, but essentially it represents the average cost of players brought in, over the life time of their contracts. Again the huge spending spree in 2007 shows that the club wil have costs for a few years to come to pay for that.
