Tottenham Hotspur could be subject to new financial regulations if they are relegated from the Premier League to the Championship. Clubs in the second tier voted on Thursday to replace the current profitability and sustainability (P&S) system with a squad cost ratio model (SCR) from next season, with 20 of the 24 clubs backing the change.
The new rules will cap spending on football costs at 85 per cent of total revenue, aligning the Championship more closely with the Premier League's own regulations. SCR expenses include player wages, manager salaries, agent fees, and the annual amortisation of transfer fees, all consolidated into a single budget representing the true cost of the squad.
Non-compliance will result in automatic sporting penalties. Exceeding the spending limit incurs a six-point deduction, with an additional one-point penalty for every £6.5 million spent beyond the ceiling. The penalties are non-negotiable and applied in the season the offence occurs.
Tottenham's Premier League status remains uncertain. They are two points clear of the relegation zone with two matches remaining, having secured 38 points from 36 games. Monday's 1-1 draw with Leeds United missed the chance to extend their lead over West Ham United, who are now just two points behind.
Former chairman Daniel Levy expressed his pain at the club's predicament but remained optimistic. 'I'm feeling the pain but I'm optimistic that we'll get through it,' he said. 'Spurs is in my blood. I could never have envisioned this at the beginning of the season.'
