Tottenham to give £134M as Daniel Levy exceptional ace to be confirmed next 48 hours
Tottenham might spend up to £134 million this summer if Daniel Levy’s long-held ambition comes true.
Spurs are likely to look considerably different when they return to the field in 2024-25.
The North Londoners began the season well in 2023-24, but lost out on Champions League football for the sixth consecutive season.
As a result, Ange Postecoglou is expected to make significant changes to his playing team in preparation for next season.
Spurs will also soon operate in a changed financial climate as a result of governance modifications.
PSR changes imply Spurs can spend big this summer
The Premier League’s AGM will be held on Thursday, June 6th, less than 48 hours away. Levy will be in attendance.
The discussions, which will take place in person in Harrogate, will primarily focus on a proposed new set of Profit and Sustainability Rules (previously known as Financial Fair Play or FFP).
If clubs opt to implement the new regulations, as anticipated, Spurs would be required to comply with a new financial anchoring and squad cost control ratio beginning in 2024-25.
Spurs’ expenditure is far beyond the highest limit imposed by the anchoring mechanism, thus the details are mostly unimportant.
TBR analysis, however, suggests that Spurs have £134 million in headroom under the new squad cost limit criteria.
This structure requires teams to spend 85 percent of their income on salaries, trades, and agency fees, which drops to 70 percent for clubs like Spurs who compete in European play.
That’s an additional £134 million for Postecoglou’s playing budget.
The sum is obtained by taking their turnover (a club-record £550 million in their most recent set of accounts) and determining their 70% upper limit.
That’s a £385 million upper limit, less their £251 million yearly pay cost (again, a club record), for a total of £134 million headroom.
And that amount might be substantially higher in reality, since the new squad cost ratio is expected to be brought in at the same time as UEFA is adopting their own equivalent scheme.
The ultimate sum will also likely differ significantly since Spurs’ payroll cost will have varied ahead of the next PSR evaluation period.
However, with the departure of a lot of high-income individuals this summer, the ultimate total is expected to rise rather than fall.
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Analysis: Will Levy fund Tottenham’s enormous transfer budget?
While fans have sometimes been disappointed by Levy’s sustainability-first approach to operating Spurs, his strategy is clearly paying dividends.
Their turnover and EBITDA (profits before interest, taxes, depreciation, and amortisation) are among the highest in the league. This provides them a lot of flexibility in the transfer market.
That is not to say Levy and ENIC are obligated to fund a massive spending binge this summer.
Finally, they can only spend much if the owners are prepared to fund it.
However, given that the departures of 12 first-team players may save the club up to £47.5 million in wages, it’s difficult to conceive a situation in which the owners would opt not to reinvest.
And, with Levy and his boardroom counterparts well aware of the significance of a good playing team to prospective investors, they will be prepared to support the manager in the transfer market.
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