The January transfer window is upon us and clubs up and down the league will be looking to bolster their options – but only within Financial Fair Play rules.
Teams nowadays have their spending monitored and must comply with rules that factor in their outlays over a certain time period.
Tottenham chief Daniel Levy is known for his business acumen even if the north Londoners haven’t won a trophy in over a decade.
A lack of spending coupled with shrewd off pitch decisions means they have a huge profit margin and could pump up to £400m into their playing squad should they wish to back new manager Antonio Conte.
Savvy commercial deals coupled with other areas like matchday revenue are also major factors.
Playing in the Champions League brings its own riches, as well as more games, thus boosting stadium revenue.
Kieran Maguire, a lecturer in football finance at the University of Liverpool, has dissected the possibilities of Premier League outfits in the coming transfer window.
He told the Daily Mail : “Spurs net transfer spend since 2010 is between a quarter and a half of the other Big Six clubs and it is the most successful club in terms of keeping its wages low as a proportion of income the club generates.
“Spurs have had a business model rather than a trophy winning model.”
The likes of Manchester City and Chelsea have regularly invested which means they could not spend the type of sums Tottenham can.
In fact, the champions could fork out up to £84m – less than the likes of Leeds, Brighton and Brentford.
Chelsea have a far greater margin and could spend in excess of £200m despite shelling out a club-record fee on Romelu Lukaku last summer.
Manchester United, Arsenal and Liverpool could all do likewise.
The Red Devils spent over £100m in the summer but continued to be linked with fresh faces to reignite their season.
Having a wealthy owner though is not a pathway to investment, something Everton are finding to their cost.
Farhad Moshiri’s millions haven’t made much of an impact yet on Merseyside and the Toffees are actually in minus.
They’re already £35m the wrong side of the line, thus making January investment difficult.
In the previous three seasons it experienced a net loss of £157.3m with their new arrivals unable to take them forward on the pitch.
Newcastle, now the world’s richest club, have got several eyes on them this month as they look to fight off the threat of relegation.
The Magpies and their new boss Eddie Howe could spend north of £100m if he wanted to bolster his squad.
Their wealth stems from their recent takeover backed by the Saudi Arabia Public Investment Fund
Maguire claimed: “The way the numbers work out Newcastle could spend a lot of money on transfers and stay within the FFP limit. They are mixing it with the big boys now.”
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