Football finance expert Kieran Maguire has claimed that Tottenham Hotspur are not under the risk of falling foul of the Financial Fair Play regulations despite the significant losses that the club have posted recently.
While the financial impact of the pandemic has impacted all clubs across Europe, Spurs have been hit particularly badly due to the substantial debt incurred on the Tottenham Hotspur Stadium.
In many ways, the loss of matchday income and reduction in commercial income could not have come at a worse time for the North Londoners.
However, Maguire revealed that Spurs are in no real danger of being caught violating either UEFA’s or the Premier League’s FFP rules due to the leeway which the clubs have been given in light of current circumstances.
Maguire told Football Insider: “They are doing two things to relax FFP rules at the moment.
“First of all, losses are being spread over two years. Also, any COVID related issues such as the loss of matchday income, broadcaster rebates and the cost of testing are not factored in.
“Tottenham don’t look horrendous in terms of FFP. The reason for that is because under the Premier League FFP rules, you’re allowed to lose £105m over three years which is a lot more generous than the UEFA rules. Under UEFA rules, you can only lose €30m over three years.
“If you try to ensure you qualify for the UEFA rules, automatically you’re going to be well within the Premier League FFP rules themselves.
“But the only club we’ve seen punished in terms of the UEFA rules was Wolves. Manchester City successfully defended their case.
“Wolves were charged last year but they had a relatively modest sanction in terms of what they were allowed to do and not do.”
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The low-interest loan that Spurs have been able to acquire from the Bank of England should be able to help the club steer through the crises. Hopefully, it is not too long before fans are allowed back in the stadium and matchday income returns to previously projected amounts.
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