View: Tottenham could face typical financial blow amid possible parachute payment cuts

Tottenham Hotspur could be dealt the most “Spursy” Championship reality by facing cuts to their parachute payments if relegation occurs.

The Lilywhites have just five games left to secure their Premier League status for another year, but are nailed on favourites to stay in 18th place, which would result in relegation.

The Lewis family would have major work to do if a drop to the Championship did occur, with revenue and wages cuts needed, as 2024-25 accounts showed a wage bill of £256million.

Now, according to The Athletic, there are discussions between the EFL and the Premier League to cut parachute payments, with some wanting them gone entirely.

With Spurs looking doomed for Premier League relegation, this would be the most “Spursy” thing to happen to the Lilywhites, from a financial standpoint.

How much could Tottenham be affected and when?

Parachute payments have been around for years, with many teams that are relegated from the Premier League, then spending money to come back up at the first time of asking the following campaign.

The year one payment for a relegated club is roughly £55m, year two is £45m, and then year three sees a relegated club earn 20m.

It’s likely that cuts will come into play soon, but a full abolishment of parachute payments is unlikely.

As seen in the table above, unofficial plans could see parachute payments drop by £45 overall, with clubs that stay put in the Championship earning a rough estimate of £120m from parachute payments.

However, if a team is promoted again after one year, they usually don’t receive the full cycle of these three-year rolling payments anyway.

It is unlikely that this will be changed for next season, but if Spurs were to get relegated and then fail to gain promotion again at the first time of asking, then their payments could be affected from the 2027-28 season onwards.

But that is the worst-case scenario, as you would expect the club to come up straight away.

Will the Lewis family sell up?

At this stage, it’s just discussions between the Premier League and the EFL over these possible parachute payment cuts and nothing has been agreed.

Either way, the Lewis family are braced for big hits in terms of commercial and broadcast revenue, sponsorship income and other matchday expenses.

The Tottenham Hotspur Stadium, which they pay £28m per year in interest alone for, is run on high costs, not to mention Hotspur Way. The Lewis family will surely be panicking behind the scenes, and a sale of the club cannot be ruled out.

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