Tottenham Hotspur chairman Daniel Levy has made a rare statement as the club posted a £26.2 million loss after tax. As part of their end-of-year financial results, Levy made a response to Spurs fans’ calls for increased transfer spending.
Daniel Levy Responds to Spurs Fans Calls to Spend More on Transfers
Financial Stability is Key for Levy
A few key headlines in the results included Spurs revenue decreasing by 4% to £528.2 million. Match receipts are down due to fewer home games and UEFA Prize money also decreased. Among other costs, the club have also made 20 signings in the past financial year.
In his latest statement, Daniel Levy started by laying out Spurs’ position in what has been a “highly challenging season” but one that could still end in silverware with the Europa League, stressing “we must do everything we can to support the team in these final key stages”.
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But next, he responded to fans’ calls for increased transfer spending. He pointed out that Tottenham have invested over £700 million net in player acquisitions since opening the new Tottenham Hotspur Stadium in April 2019.
Levy said: “Recruitment remains a key focus, and we must ensure that we make smart purchases within our financial means. I often read calls for us to spend more, given that we are ranked as the ninth richest club in the world.”
“However, a closer examination of today’s financial figures reveals that such spending must be sustainable in the long term and within our operating revenues. Our capacity to generate recurring revenues determines our spending power.”
Here, Levy refers to the Premier League Profit and Sustainability Rules where clubs can only lose up to £105 million over a three-year period, and any losses beyond £15 million must be covered by owner investment rather than debt. Any breaches are punishable by fines, points deductions, transfer and spending limits.
Levy goes on to write: “We cannot spend what we do not have, and we will not compromise the financial stability of this club – indeed, our off-pitch revenues have significantly supplemented the lower football revenues this year, testament to our diversified income strategy.”
Postecoglou’s Future
In his statement, Levy does not explicitly refer to the future of current boss Ange Postecoglou. But he acknowledges that this has been a challenging season for the club and that winning the Europa League would be a huge positive; not only would Tottenham win some much-needed silverware but it would also give them a place in the Champions League next year. This would be a big win-win for the club and could buy Postecoglou more time.
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The latest reports from The Athletic claim that Postecoglou’s future is in “serious doubt” beyond this current season, with a three-man managerial shortlist already drawn up.
But as it stands, Spurs still have a really important trophy to play for. Making a managerial change now may not give the players the best chance at going for the Europa League and may prove costly in many ways for the club.
Levy has even sacked a manager before a cup final in the past, dismissing Jose Mourinho six days before the Carabao Cup final in 2021, which Spurs lost 1-0 to Manchester City.
New Manager, New Spending
If Spurs don’t win the Europa League and fail to climb much further in the Premier League, this will have been a torrid season for the club; it would be no surprise to see Postecoglou sacked.
The need for transfer spending will only increase if Levy decides to give Postecoglou the axe. A new manager brings new ideas and tactics. If Spurs can find a good man manager, like they’ve had in Pochettino, it may reduce the need for so many new faces.
Some great young stars are coming through at the club who could be developed under the right manager. The likes of Archie Gray and Lucas Bergvall are already proving to be solid first-team players. But their minutes need to be managed.
With Spurs’ current league position and overall performance this season, it is clear that the Lilywhites still need some investment in their squad if they are to compete with Premier League rivals and European heavyweights.
Levy has not ruled out any new transfer spending but has instead reaffirmed the need to make smart transfer decisions that consider the longer-term financial stability of the club. The new Premier League PSR rules make excessive transfer spending especially difficult and so Spurs fans shouldn’t expect a huge flurry of transfers any time soon.