Tottenham to miss out on spending opportunity under new Premier League rules due to £100m+ revenue loss

Tottenham to miss out on spending opportunity under new Premier League rules due to £100m+ revenue loss

According to former Manchester City financial adviser Stefan Borson, Tottenham Hotspur’s expected drop in revenue next season will limit their ability to take advantage of the new squad cost ratio (SCR) rules, despite not being in European competition.

Borson exclusively told Football Insider that Spurs’ turnover could fall by over £100 million, offsetting any financial benefit from missing out on Europe.

Starting in the 2026-27 season, the Premier League will replace profit and sustainability rules (PSR) with the SCR system. Under these rules, clubs can spend 85% of their revenue on squad costs, while teams in European competitions are capped at 70%.

Some have suggested that Tottenham—if they remain in the Premier League—might benefit from the higher 85% cap, allowing them to spend more aggressively.

However, Borson dismissed this as a “red herring.” He explained: “There’s a reason for the 15% difference between clubs in Europe and those not. Yes, if Spurs survive, under SCR two things happen.

One, there are no financial penalties for overspending—you can go up to 30% above your limit, so for Spurs that’s 115% of revenue. But second, they won’t be in Europe, meaning their revenue will drop by roughly £100-110 million compared to this season, depending on commercial deals.”

Tottenham are currently fighting relegation after a miserable campaign. New manager Roberto De Zerbi lost his first game in charge 1-0 to Sunderland on April 12, leaving Spurs in the relegation zone. Borson insisted the club would much rather be capped at 70% while competing in Europe, due to the higher revenue that brings.

“Clearly, it’s 85% of a much lower amount,” Borson said. “Every day they’d rather have 70% of the higher amount than 85% of £100 million less. Doing the maths, it’s pretty neutral either way. There’s probably only a £10 million difference in budget between being in Europe or not, because being in Europe means much higher revenue.”

Tottenham face Brighton on April 18, as De Zerbi seeks a vital win against his former club.