How much of a boost would winning the Europa League be to Tottenham's finances?

Tottenham Hotspur’s season comes down to the Europa League semi-final against Bodo/Glimt, beginning with the first leg at home on Thursday.

Sunday’s 5-1 defeat by Liverpool at Anfield confirmed that Spurs will finish a season in the bottom half for the first time since 2007-08 and put any aspirations of an improbable late push for a European position to bed.

The only way Ange Postecoglou’s side can still secure a spot in Europe is to win the Europa League, which guarantees a place in next season’s Champions League.

While the sporting pride of Champions League qualification may be the primary motivation for the players, it will bring a much-needed cash inflow for a club which had the highest net transfer debt in the Premier League at the end of last season.

Here, The Athletic explains how much of a difference Champions League qualification will make to Tottenham’s finances in 2025-26.

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How likely are Spurs to qualify for Europe next season?

Through the Premier League, no chance. Spurs currently sit 16th in the league table, and will finish somewhere between 11th and 17th.

Although there was a stage at which it would have been possible for the team that finished 11th to qualify for Europe, that is now no longer the case. The lowest the Premier League’s European spots can now reach is eighth (if Manchester City win the FA Cup, and League Cup winners Newcastle United finish in the top seven).

That means winning the Europa League is now Tottenham’s only chance of qualifying for Europe next season, with success in the competition rewarded with a place in the Champions League.

Most Spurs fans would likely see that European berth as merely a bonus prize, given winning the Europa League would end their club’s 17-year trophy drought.

The Opta Predictor currently gives Spurs a 34.9 per cent chance of winning the Europa League, making them favourites (at least according to the supercomputer). Their status as frontrunners is at least partly down to the fact they face outsiders Bodo/Glimt of Norway in the semi-finals. Should they reach the final in Bilbao, they may not be favourites against the winner of the other semi between Athletic Club and Manchester United.

How much have they made from playing in Europe in previous seasons?

Spurs most recently played in the Champions League in the 2022-23 season, reaching the last 16 and recording record revenues of £550million ($737.3m).

For reaching the quarter-finals of UEFA’s premier club competition, Spurs received £56.2m in prize money, a significant growth from the £10.2m earned in the 2021-22 campaign, when Spurs were knocked out in the group stage of the Conference League. Last season, they did not play in any European competition and earned just £1.3m in UEFA prize money.

It also coincided with a significant spike in TV revenue. For the 2022-23 season, Spurs made £204.3m from broadcasters, up from £153.8m the season before. There was also a sizeable boost in matchday revenue, increasing from £106.1m in 2021-22 to £117.6m in 2022-23. Last season, their broadcasting income dropped from £204.3m to £167.2m.

Clearly, Spurs’ underperformance in the 2021-22 Conference League had a detrimental effect on their finances, but they were nonetheless still able to strengthen in the transfer market. The following summer, Spurs paid sizeable sums for Richarlison and Yves Bissouma and completed the deal to sign Cristian Romero after a season-long loan. They also made significant investments for Postecoglou’s first summer in charge, coinciding with a 12 per cent increase in player amortisation payments (£136m) from 2022-23 (£109m).

While Spurs’ wage payments (£222m) account for just 42 per cent of their revenue, they have spent big on transfer fees in recent seasons. Without the income from Champions League football, Spurs will be limited in how much they can spend.

How much would Spurs make from playing in next season’s Champions League?

Due to the added knockout play-off round and two extra group games in the rebranded league phase, UEFA increased the overall prize pot for Champions League clubs this season.

For the 2024 to 2027 cycle, UEFA is distributing €2.47billion (£2.04bn; $2.59bn) across the 36 participating clubs, up from €2.03bn under the old format. The pot is divided into three categories: equal shares (27 per cent; €670m), performance-related fixed amounts 37.5 per cent; €914m) and the value pillar (35 per cent; €853m).

The equal share is simple: each participating club is handed a starting fee of €18.6m, regardless of status or performance. Then, clubs earn extra money through their performance in each match, with €2.1m earned per league phase win and €700,000 for every draw. Further bonuses are earned based on your final position in the league phase.

Progression through the knockout stages remains the most lucrative business, with substantial sums paid for qualifying for the next round. This year’s finalists will amass at least €57m each through the knockout stage in performance-related payments, with an additional €6.5m going to the tournament winners. After progressing into the Champions League semi-finals, Arsenal have already banked around £100m.

The value pillar directs funds with historical European performance and media market share in mind; therefore, the tournament’s most prominent clubs often profit the most from this category. As a Premier League club with a large international following, Spurs could have hoped to bank an eight-figure sum through the value pillar.

The Tottenham Hotspur Stadium would also be a revenue generator. Spurs make almost £6m per matchday, guaranteeing an extra boost of at least £48m. With the added interest of European giants coming to north London and the Champions League’s unique sense of occasion, it would not be surprising to see an increase on that number for European ties.

Prize money for the Europa League and Conference League is broken into the same categories, but progression is less lucrative. If Spurs had scraped into the Conference League via their Premier League finish, they could have earned up to €12m in next season’s competition in performance-related payments and starting fee alone. If they went one better and secured a Europa League place, they could have earned up to €30m.

As it is, it’s now Champions League or nothing.

How much of a difference could qualification make to Spurs’ summer spending?

Qualification for the Champions League would clearly enhance Tottenham’s ability to be active in the upcoming summer transfer window.

Spurs are in a strong position regarding Premier League Profit and Sustainability rules (PSR), with over £200m in headroom. Since moving to the Tottenham Hotspur Stadium, their commercial growth has skyrocketed, with major events including concerts, boxing bouts and NFL games proving to be significant money-spinners. Tottenham also have the lowest wages to revenue ratio (42 per cent) among Europe’s elite clubs.

Crucially, however, Spurs have spent significant amounts in recent windows. Last season, their £272.2m outgoings on player transfers was a club record. Only Manchester City and Chelsea have ever spent more in a single season among English clubs.

Their spending in recent seasons has left the club with a net transfer debt of £279.3m — the highest in England at the end of 2023-24. For a club which endeavours to operate sustainably, such a significant transfer debt will limit their ability to spend significantly this summer, particularly if they do not qualify for the Champions League.

As per The Athletic’s Chris Weatherspoon’s analysis of Tottenham’s financial results, it appears unlikely they will be able to spend in quite the same way this summer.

Using last season’s merit payments as a guide, Spurs are in line to earn £14m should they finish in their current league position, a £31.1m decrease from the £45.1m banked for finishing fifth. Qualifying for the Champions League will inject a minimum of around £50m into coffers (excluding the value pillar payments), helping bridge that difference and potentially boost the summer budget.

What happened the last time Spurs didn’t qualify for Europe?

The 2023-24 season started so well that Spurs were top of the Premier League after ten matches, having picked up 26 points from a possible 30. At that point, at that stage the theory was that the failure to qualify for Europe the previous season was helping Postecoglou’s side as they flew out of the traps.

Despite failing to qualify for Europe, Spurs spent big in the transfer market. Postecoglou recruited Brennan Johnson, James Maddison, Micky van de Ven, Pedro Porro, Guglielmo Vicario and completed the permanent signing of Dejan Kulusevski from Juventus. Club legend Harry Kane departed for Bayern Munich on the eve of the season’s first match, but Spurs’ bright start seemed to ease the pain of losing one of their own.

However, a fanciful title charge would collapse in November and early December in a period where Spurs picked up one point from five league matches. Off the back of the excellent start and a strong stretch between December and early April, Tottenham finished fifth in the league, qualifying for this season’s Europa League. With hindsight it feels a very good effort.

(Top photo: Bradley Collyer/Getty Images)