AliousDespite starting the 2023-24 campaign strongly, Tottenham Hotspur disappointingly missed out on Champions League qualification for the fifth year running.
To rectify this, new manager Ange Postecoglou is expected to oversee a major overhaul of the playing squad ahead of next season.
However, a significant change in financial regulations means Spurs will soon have considerably more spending power in the transfer market.
This week, the Premier League is set to approve new Profit and Sustainability Rules (PSR) at their AGM on June 6th, which chairman Daniel Levy will attend in person.
The new rules will replace the previous financial fair play regulations.
One key aspect is a “squad cost control” measure, limiting clubs to spending 70% of revenues on wages, transfers and agent fees when competing in Europe.
Crucially, analysis shows Spurs will have around £134 million in headroom under this ratio.
This £134m figure is calculated from Spurs’ record £550m turnover last season.
70% of that is £385m, which minus their £251m wage bill leaves £134m to spend on squad costs.
The final number could even increase with high-earner departures reducing the wage budget further.
While Spurs have sometimes been criticized for financial prudence under Levy, this approach now puts them in a strong position.
With huge revenues and profits, they can comfortably comply with the new rules while investing heavily in talent.
However, it remains to be seen if Levy and the owners at ENIC will fully capitalize on this by bankrolling a massive spending spree.
But with player sales cutting the wage bill and the incentive to build a star squad attractive to potential investors, backing Postecoglou in the market seems likely.
Alious
