Tottenham Hotspur are among only three Premier League clubs that have a significant amount of leeway under the Profitability and Sustainability Rules (PSR). A new proposal being discussed could potentially give Spurs a £100 million boost in the market.
Regardless of what fans think of Spurs chairman Daniel Levy, it is undeniable that he has transformed the club into a financial powerhouse, with commercial revenue consistently increasing. This growth is largely due to the income generated by the Tottenham Hotspur Stadium, which hosts music events and other sports like NFL and boxing throughout the year.
In the transfer market, other Premier League clubs such as Chelsea, Nottingham Forest, and Newcastle United are reportedly required to sell players to comply with PSR restrictions. Tottenham, however, do not face this issue.
Premier League clubs are set to meet on June 6 to discuss several financial operational concepts. Among the core discussions are a squad cost control ratio, which would limit clubs to spending 85% of their turnover on transfers, and an anchoring system, which would align spending with the lowest-paid club’s TV income.
Additionally, another intriguing motion is in early discussions. According to iNews, Premier League clubs are considering the idea of “auctioning off” headroom, where financially stable clubs could sell their financial cushion to those at risk of breaching PSR. It is unclear whether this will be addressed at the AGM, as it is still in its initial stages.
Analysis from Off The Pitch indicates that Tottenham, Brighton, and Brentford are the only teams currently with significant headroom, with Spurs reportedly about £20 million above the PSR threshold.
Considering the next three years of the Financial Fair Play assessment period and including revenue from European football, Tottenham’s total headroom is projected to be around £100 million. If the motion were passed, this would give Spurs a substantial advantage.
