Spurs sold main man Gareth Bale to Real Madrid for around £100million and brought in a whole host of new players with that money including £26million Roberto Soldado and £25.8million Erik Lamela.
Hoddle, who applied for the job when Andre Villas-Boas was dismissed earlier this season, has pinpointed the reckless spending as their downfall this season.
The North London club have had a week to forget, being knocked out of the Europa League and losing to rivals Arsenal at White Hart Lane, and Hoddle believes the team lack vision under Tim Sherwood.
“Tottenham spent £110m replacing Gareth Bale and Tom Huddlestone with a deluge of new signings in the summer. Good players, but not great ones,” Hoddle said.
“The club have bought the wrong type of players, proving that throwing money at new signings is not always the answer.
“There needs to be a better strategy to provide more stability. The issue is building a team with the right blend, the right style, and that hasn’t happened yet. The team lack vision.”