Tottenham Hotspur's Profit and Sustainability Rules (PSR) position could pave the way for significant spending in upcoming transfer windows. The club's qualification for this season's Champions League, courtesy of their Europa League victory last season, should net them a minimum of £60 million.
This is a welcome financial injection for Tottenham, who have already shelled out some €146m (£126m) this summer on new recruits such as Mathys Tel, Kevin Danso, Mohammed Kudus, Luka Vuskovic, Kota Takai and the loan of Joao Palhinha, which carries a loan fee. Dave Powell, Reach PLC's business of football writer, believes the club's financial leeway could well exceed the £350m mark for the current PSR cycle.
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While this might suggest it's time for Spurs to loosen the purse strings, the key is ensuring the club can manage the cash flow of new additions and improve their player trading in terms of departures, an area where many of their rivals outshine them. Stefan Borson, former financial advisor to Manchester City, has also weighed in on Tottenham's PSR and financial fair play compliance situation.
"I think when Spurs get to the situation they're in now, where their wage to revenue percentage right now on a run rate for the season must be even below 40 per cent," he shared with Football Insider. They've got probably ten Champions League games between now and the end of January because it's very unlikely that they're going to finish below 24th in that table, so they're probably going to have at least the play-off and possibly the round of 16 game.
"So, that's ten games in the Champions League. The squad is not built for that right now, and so I do expect that they will spend serious money between now and the end of the window.
"It's not going to be that straightforward to find who those players are if it's not Savinho. Who are the big players that they're going to target to get them a squad that they're happy with, having missed out on Eze and Gibbs-White? I don't know.
"I still think it's most likely that you've got £150-200m of spend and very significant wage commitment over the next five years. Otherwise, it might be financially quite a nice situation for Daniel Levy for this season in terms of presenting his numbers, but the fans would be very unhappy. Moreover, I just think the squad is going to be too thin for the season."