Tottenham sitting on £100m FFP goldmine, potentially just one set of talks away
One set of negotiations away from releasing a financial fair play gold mine is Tottenham.
Outside the top four for the third season running, Spurs ranked fifth overall. And that means no rich Champions League football once again next season.
Financially, that’s really important. The last time the North Londoners participated in the top level of European competition, their turnover during 2022–23 came at a club-record £500m.
The club’s focus on long-term profitability, however, helps them to be in a solid position regarding the Premier League’s Profit and Sustainability Rules (PSR, or FFP as it once called).
On June 6th, the top flight will vote on whether or not to implement a squad cost control ratio restricting teams to pay 85% of their turnover on salaries, transfers, and agency fees.
An anchoring system also on the ballot would forbid teams from spending more than a multiple (perhaps four or five times) of the lowest-paid club’s TV income across those three categories.
And one more item on the agenda may be very profitable for Spurs should the motion pass.
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Headroom FFP auctioning off was considered by Premier League teams.
Clubs have spoken about “auctioning off” FFP headroom, as iNews has revealed.
Basically, clubs having the wiggle leeway to spend under Profit and Sustainability might sell off the extra to other teams that need it either to match PSR or to boost their playing budget.
The concept is said to be still in its infancy and it is not known for sure if it will be covered at the AGM on June 6.
If it is, or even if it is brought up as a possibility with an eye towards utilising it as an alternative method later down the road, it might transform the league’s finances and create a quasi secondary transfer market.
Why would Tottenham benefit from this?
Analysis from Off The Pitch indicates that Spurs are one of just three Premier League teams certain to have headroom under the new PSR rules; the other two are Brighton and Brentford.
Based on Spurs’s 2022–23 season—the latest for which data is accessible—the study reveals that the team has around £20m of headroom.
Spurs might be sitting on £60m of headroom extrapolated over the length of a rolling three-year FFP evaluation period.
Should Spurs go back to Europe during the next evaluation period, that number may well reach £100m.
Although the strategy has sometimes disappointed supporters, Daniel Levy’s focus on long-term profitability, wage management, and commercial development would very much be fruit in this context.
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