Daniel Levy believes that new UEFA rules that are coming into effect this summer will have quite a big impact on the financing of football. Having seen Chelsea and Manchester City's very wealthy owners spend huge amounts of money in the past that has led to both clubs winning multiple trophies, Newcastle United are expected to follow in their footsteps and challenge at the top over the coming years following their high-profile takeover by Saudi Arabia's Public Investment Fund in October 2021.
This season, Chelsea have been in the headlines after splurging more than £600million in the transfer market under new owner Todd Boehly, thus raising questions about Financial Fair Play regulations in the process. Speaking to Cambridge Union and asked what implications does super wealth coming from Qatar and Saudi Arabia have on clubs such as Tottenham, Levy stated that clubs will soon be limited in the amount they can spend on wages and transfer fees due to the new rules coming into play.
"Firstly there are new laws coming into effect this season, UEFA rules, where sustainability is going to become much more paramount in people's minds so you'll be limited in the amount you can spend on wages and transfer fees, effectively the amortisation element. That's a percentage of your total turnover," explained Levy.
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"So it's starting off at 90% and over three years it's going down to 70%. The effect of that is effectively some sort of wage of control. So I think that although clubs have been spending very heavily, if you talk about someone like Chelsea, now the new rules come into effect this summer I think you'll find that regardless of who is the owner, it's going to have quite a big impact on the financing of football."
In regards to Man City, in February the club were hit with charges relating to numerous allegations of financial breaches made between the 2009/10 and 2017/18 seasons. While the current Premier League champions wait for the eventual outcome of the charges, Levy has refused to comment on their situation but has indicated that Premier League rules should apply to all.
"We have Premier League rules and they should apply to every club, small or big," said the Spurs chairman. "It is right for the Premier League to enforce those rules. I won't comment on Manchester City. Let's see what happens. The rules are there for a reason."
Tottenham fans have wanted the club to spend more in the transfer market in recent years to ensure that they remain towards the top of the Premier League and can challenge the best teams for major trophies. Levy was asked about the club's business and the belief that this has come at the expense of success on the pitch.
"My starting point is I don't agree with it because if you look at the amount of money Tottenham has spent on new players over the last five or 10 years and you compare it with certain other clubs in the Premier League, not only have we exceeded those clubs but actually some of those clubs may well have been more successful than us on the pitch," he responded.
"There is not necessarily a direct link between the amount of money you spend and getting success on the pitch. Invariably it is what you spend it on and I could name, I won't name, but we could all name in here a number of players Tottenham has bought that have not been successful and we've lost an awful lot of money."
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