(Credit: Imago)

James Murray

Wed 15 April 2026 8:00, UK

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Tottenham Hotspur’s anticipated drop in revenue next season will see them miss out on an opportunity to spend more under the squad cost ratio (SCR) rules. 

That is according to former Manchester City financial adviser Stefan Borson, who exclusively told Football Insider Spurs’ turnover could fall by more than £100million next season, counteracting the benefit of not playing in Europe. 

Premier League clubs voted to introduce the SCR system to replace the profit and sustainability rules (PSR) from the start of the 2026-27 campaign.

Under the SCR rules, clubs will be able to spend 85 per cent of their revenue on squad costs, while that figure drops to 70 per cent for teams competing in European competitions. 

There has been some debate around how the rule change will impact Tottenham’s spending power if they remain in the Premier League, with suggestions they will have an opportunity to be more aggressive due to not being capped at 70 per cent. 

Why Tottenham spending claims are ‘red herring’

Tottenham are fighting to avoid relegation from the Premier League following their miserable campaign. 

Roberto De Zerbi lost his first game in charge of Spurs 1-0 against Sunderland on Sunday (12 April), with his side dropping into the relegation zone as a result. 

Speaking exclusively to Football Insider, Borson discussed whether Tottenham could potentially benefit from not being restricted as much by the SCR rules next season.

“I see that as a bit of a red herring because there’s a reason why you have the 15 per cent difference between clubs that are in Europe and clubs that are not,” said Borson. 

“Of course, it’s true that next season if Spurs survive, under SCR two things happen. One, there are no financial penalties for overspending, so you can spend up to 30 per cent above your limit. For Spurs, that’ll be 115 per cent of their revenue without a financial penalty.

“But the second thing is, of course they won’t be in Europe, which means that their revenue falls compared to this season by probably £100-110m depending on what their commercial arrangements are.” 

How Tottenham’s revenue drop will impact spending plans

Borson insisted Tottenham would rather be capped at 70 per cent and competing in Europe because of the anticipated drop in revenue.

“Clearly, it’s 85 per cent of a much lower amount,” said Borson.

“Every day they’d rather have 70 per cent of the higher amount rather than 85 per cent of the £100m less. By the time you do the maths on it for Spurs, it’s pretty neutral either way. 

“There’s probably something like a £10m difference in terms of the budget if they’re not in Europe versus if they are, just because if you’re in Europe, your revenue is much higher.” 

Tottenham’s next fixture sees them take on Brighton on Saturday (18 April) as De Zerbi looks to pick up a crucial victory against his former club.