Tottenham’s transfer market spending must be smart and sustainable, says Daniel Levy

LONDON – Tottenham Hotspur’s spending in the transfer market must be smart and sustainable, Daniel Levy said as the English Premier League club on March 31 announced a fall in revenue on top of mounting challenges on the pitch.

Spurs’ revenue fell 4 per cent for the year ending June 2024 from £549.6 million (S$954.4 million) in the previous year to £528.2 million, while the club reduced losses after tax, with a deficit of £26.2 million from £86.8 million in 2023.

Chairman Levy, who has been criticised by fans for not spending enough on the squad, defended his investment in players while reiterating Tottenham’s need to be financially sustainable.

“Since opening our new stadium in April 2019, we have invested over £700 million net in player acquisitions. Recruitment remains a key focus, and we must ensure that we make smart purchases within our financial means,” he said in a club statement.

“I often read calls for us to spend more... 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. We cannot spend what we do not have, and we will not compromise the financial stability of this club.”

Key to the fall in revenue was a drop in Uefa prize money, as the north London club earned just £1.3 million in 2024 compared to £56.2 million the previous year due to their absence from European competition. While television revenues rose from £148.1 million to £165.9 million, match-day revenue fell from £117.6 million to £105.8 million due to the drop in the number of matches.

Levy also labelled the 2024-25 season on the field as “highly challenging”, with Spurs languishing 14th in the Premier League. But he remained optimistic about the club’s future as they “continue to build for success on the pitch”.

Spurs are not the only club who have suffered financially.

Everton made a loss of £53 million in the 2023-24 season, marking a seventh consecutive year in deficit, but they will avoid breaches of the league’s profit and sustainability rules (PSR).

Despite the Toffees reporting an improvement from the £89.1 million deficit recorded the previous year, the club’s losses over the last seven years total £570 million.

Last season they were deducted eight points for two separate PSR breaches for the rolling three-year periods including the 2021-22 and 2022-23 campaigns.

In January, the Premier League confirmed that all clubs, including Everton, were financially compliant for the 2023-24 season, and no additional charges would be imposed. Under PSR regulations, clubs are allowed a maximum loss of £105 million over three years.

Everton’s reported three-year losses stand at £187 million but exemptions for investment in infrastructure, youth development and women’s football helped them remain compliant.

The club agreed in March a long-term financing deal for their new 52,000-capacity stadium, securing a £350 million deal to refinance borrowing already in place on the venue, which they are due to move into for the 2025-26 season.

Everton’s finances have been transformed since the Texas-based Friedkin Group’s £400 million takeover in December, which ended Farhad Moshiri’s eight-year tenure and converted his shareholder loans into equity. REUTERS