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News
Tottenham immediately unlock £33.5m transfer prize after Troy Parrott terms agreed
Daniel Levy could theoretically pump another £33.5m into Tottenham’s transfer budget thanks to the sale of academy graduate Troy Parrott.
Parrott, 22, came tওhrough the ranks at Hotspur Way after signing from Dublin side Belvedere in 2017 and has gone on to make f൲our senior appearances for the club.
However, despite showing major promise🌌 in his early career, the centre-forward has played t𒆙he vast majority of his football out on loan.
The Republic of Ireland international, who has one year left on his Spurs contract, spe🐷nt last season with 𒁏Dutch side Excelsior.
Clearly, Parrot impressed while scoring 17 goals for the Rotterdam club as he has now agreed terms and is set to undergo a medic𒆙al for fellow Eredivisie side AZ Alkmaar ahead of a £6.7m move.
That fee has been hailed as something of a masterstroke from Levy, Spurs🔯’ chief negotiator, co-owner and chairman.
💧And Parrot’s home🌄-grown status means that Spurs could benefit from more than just the upfront fee.
Home-grown Troy Parrott to free up PSR headroom
Few clubs in the Premier League are in a better off under Profit and Sustainability Rules (formerly FFP꧅) than Spurs.
That is thanks to Levy’s emphas🎃is on sustainable growth, which has frustrated fans at times but has now ꧟put the club in a strong position ahead of an expected tightening of the PSR model.
And because of the way profit on player sales is calculated, Parrott‘s sale will give them even greater headroom to man𝕴oeuvre in the♛ transfer market.
Per football finance expert Kieran Maguire speaking exclusively with TBR about Spurs’ North London rivals Arsenal and the potential sale of🅷 several academy players, these sales count as ‘pure profit’.
Why? Because, in contrast to outsourced players, academy graduates h♐ave no transfer fee associated with the🐭m.
For PSR, any profit from player sales is offset against a player’s book value, which is determined by their initial fee and how longꦿ remains on their contract.
For example, a player signed f𝓡or £50m on a five-year contract has a book value of £50m in ye💫ar one, £40m in year two and so on.
If🦹 the club then sells the player in year two of his contract for £50m, the club will record a £10m profit as far as their PSR calculation.
But🎉 for academy graduates like Parrott, the lack of an initial fee means that any sale proceeds are pure pꦇrofit.
And given that signing fees are split over a player’s contract length (uไp to five years) whereas incoming fees are received up front, Parrot’s sale would generate £33.5m PSR headroo𝔍m immediately.
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TBR Analysis: Spurs are not being forced to sell under PSR
While Parrot🎃’s sales will create greater flexibility for Spur꧂s, they are by no means being forced to sell.
Most analysis shows that Spurs already have around £140m of PSR headroom for 2024-25.🦹
Essentially, that means they could post a £140m deficit for the season and still remain compliant with the Premier League’s allowable loss limit of ꦉ£105m over a rolling three-year period.
That does not me♍an Levy will depart from his conservative approach in the transfer 🀅market any time soon.
But with Spurs seeking fresh investment via a full or partial ꦆtakeover, the 62-year-old’s approa❀ch coupled with the sale of academy graduates like Parrott would give a new owner huge capacity to spend.