A financial expert has explained that Tottenham Hotspur and all the other Premier League clubs are set to receive a financial boost due to the fact that Leeds United and Burnley have been promoted from the Championship.
Burnley’s promotion is good news for the Lilywhites as it means that Tottenham are set to receive a £3m boost due to their sell-on clause on Marcus Edwards, who the Clarets are obligated to sign for £8.5m this summer.
However, that is not the only reason why Daniel Levy and Spurs will be pleased that Scott Parker’s men have been promoted alongside Leeds.
It has now been explained that the Lilywhites and the remaining clubs in the top flight will benefit as a result of the savings that the Premier League will make in terms of parachute payments.
Extra funds are to be distributed among Premier League sides
Parachute payments exist to help relegated clubs cope with the significant loss in revenue from broadcasting deals, with payments made to relegated clubs for three years after they go down.
However, football finance expert Keiran Maguire explains that those payments will not have to be made in full if the clubs get promoted back to the Premier League within that three-year timeframe.
That is the case with Burnley, who were relegated last season and Leeds, who went down two seasons ago.
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Maguire explains that £102m in parachute payments were saved when Leicester and Southampton bounced straight back up last season, and a further £51m will be saved now that Burnley and Leeds are promoted.
This £153m is now expected to be divided between the Premier League sides, which Spurs and the other top-flight sides will be very pleased about.
Much-needed financial boost for Tottenham after Daniel Levy’s warning
After Spurs posted a loss for the fourth straight financial year in a row, Daniel Levy warned the fans that Tottenham’s current transfer spending is not sustainable.
This financial boost is thus very timely for the North London side and their coffers might be about to be boosted even further.