Stefan Borson: Tottenham take £5m hit to terminate star's contract

Tottenham had enough flexibility in their PSR calculations to pay £5million to terminate Tanguy Ndombele’s contract this summer.

That is the view of finance expert Stefan Borson, who exclusively told Football Insider that Spurs will have to take a loss on Ndombele’s book value in their 2023-24 accounts.

Tottenham announced on Wednesday (12 June) that they have mutually agreed with Ndombele to terminate his contract at the club effective June 30.

The French midfielder – who signed for a club-record £54million fee – last played for Spurs in January 2022.

As revealed by Football Insider, Tottenham have agreed to pay Tanguy Ndombele more than £5million to terminate his contract 12 months early.

Tottenham sacrifice PSR hit to terminate Ndombele deal

Borson explained that the only financial benefit for Spurs is that they likely agreed to pay a reduced rate of Ndombele’s wages to terminate his deal.

“There are not many benefits of terminating a contract from a PSR perspective but Spurs do not need to worry about that,” Borson told Football Insider.

“They end up taking a write-off on his book value in this current year which will show up in the accounts as a loss on impairment.

“It accelerates the wages as well but I assume what they’ve done is agreed a discount to what he would have been paid if he stayed for a full year.

“So there could be a small benefit there but really I think this is more housekeeping.

“At the end of the day, they want him out of the club and so they take the hit and move on as they have enough PSR flexibility to be able to take those sorts of decisions.“

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The post Stefan Borson: Tottenham take £5m hit to terminate star's contract appeared first on Football Insider.