The stand-in skipper admits the capture of the coveted 21-year-old took him by surprise and says the intense competition for striking places can only be good for the team.
"I think he is very good player and he is young as well, which is good for the future of Tottenham," reasoned Stephen.
"He's proven he can score goals, is very sharp and will boost the squad with having four very good centre forwards. It is great for the competition and he'll be good for us, very good.
"I think it will have surprised people - I don't think anybody expected it. I know I didn't because, the way the market has gone, not many teams outside the top three could spend that sort of money.
"It is testament to where the club want to go and I'm sure there will be even more added to the team in the next transfer window. It's good."
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Stephen Carr suspects the signing of Jermain Defoe bodes well for the future of the club.