A new report has shed light on how bad Tottenham’s financial position is heading into the summer window and how crucial it is for the club to qualify for the Champions League to continue investing in the first-team squad.
While releasing Tottenham’s financial numbers last month, Daniel Levy warned Tottenham fans that their current transfer spending is not sustainable.
It was reported by The Telegraph a few days ago that Levy’s warning should be taken seriously, with Spurs needing to sell players before they could buy this summer.
It was explained that while the Lilywhites have some wiggle room in terms of PSR, the club simply do not have the funds to spend big this summer unless there is a significant injection of cash from ENIC.
Tottenham’s transfer debt is dangerously high
Football.London have now explained that Tottenham Hotspur find themselves in this difficult position due to their increasing transfer debt.
The outlet explains that most of their transfers have been done on credit in recent years, with Tottenham’s transfer payables (the money owed to clubs on players they have already signed) currently standing at a whopping £337m.
In that metric, Spurs are second only to London rivals Chelsea, who have accumulated a transfer debt of £479m.
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As a result, Tottenham have been eating into their cash reserve, which has gone down from £198m at the financial year ending in 2023 to just £79m as of March 31, 20204.
It is suggested that Spurs will not want to continue adding to their transfer debt and would thus have to operate smartly this summer by selling players before they can buy.
Ange Postecoglou could ease Tottenham’s financial concerns
Ange Postecoglou might not be in charge of Tottenham beyond the summer, but he can do the North London club a huge favour on his way out by winning the Europa League.
If Spurs win the competition and secure entry into the Champions League, that would bring in a significant amount of guaranteed funds, thus giving the Lilywhites a little more wiggle room in the transfer market.
Football.London point out that Aston Villa were able to bag £90m as a result of participation fees, prize money and additional matchday revenue in the Champions League this season.
Unless Tottenham get a similar financial boost, Spurs fans should be braced for a tough summer.