‘Like Chelsea’ – Daniel Levy explains how new financial rules will impact Spurs
Daniel Levy has suggested that once UEFA’s new financial regulations come into effect, some of Tottenham’s rivals will not be able to continue their current level of spending on transfer fees and player wages. Many Spurs fans and neutral observers will perhaps put Spurs’ inability to compete consistently with the top sides in the Premier […]
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Daniel Levy has suggested that once UEFA’s new financial regulations come into effect, some of Tottenham’s rivals will not be able to continue their current level of spending on transfer fees and player wages.
Many Spurs fans and neutral observers will perhaps put Spurs’ inability to compete consistently with the top sides in the Premier League down to the fact that the Lilywhites do not spend as much as some of their rivals do.
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While the North London club have loosened their purse strings since moving to the new stadium, their spending still does not compare with what we have seen from the likes of Chelsea over recent years.
Levy has now pointed out that all clubs’ spending will effectively be capped at around 70 per cent in three years, which is why some of those sides will not be to continue spending exorbitant amounts.
When asked about the super wealth from Qatar and Saudi Arabia coming into the Premier League and its implications for clubs like Tottenham, the Spurs chairman told the debating society of Cambridge University: “Firstly there are new laws coming into effect this season.
“UEFA rules, where sustainability is going to become much more paramount in people’s minds so you’ll be limited in the amount you can spend on wages and transfer fees, effectively the amortisation element. That’s a percentage of your total turnover.
“So it’s starting off at 90% and over three years it’s going down to 70%. The effect of that is effectively some sort of wage of control.
“So I think that although clubs have been spending very heavily, if you talk about someone like Chelsea, now the new rules come into effect this summer I think you’ll find that regardless of who is the owner it’s going to have quite a big impact on the financing of football.”
Levy spoke about the importance of football following a sustainable approach rather than allowing wealthy owners to make unlimited investments in the clubs that they own.
When asked if a balance has to be struck so that some giants do not continue to dominate the game, the 61-year-old responded: “The answer to that is absolutely yes. In fact, under the financial fair play rules, you are able to make investments.
“I think the most important thing is to not get ourselves in a place where unlimited investment can be made and isn’t sustainable when that investment suddenly stops or that owner suddenly goes and then the club disappears. That’s why you have to find the right balance.”
Spurs Web Opinion
I think the new financial rules will benefit clubs like Spurs and Liverpool which are run responsibly. We have already seen its impact on Manchester City, who have lowered their transfer spending over recent years (albeit under the threat of investigation).
Chelsea would most certainly not be able to continue on their current trajectory and they could potentially have quite a difficult time over the coming years, given the size of their squad and the number of players that are on big long-term deals.
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