Tottenham’s transfer budget has been set after they failed to qualify for the Champions League next season.

Spurs’ 2-0 defeat to Manchester City on Tuesday dealt a devastating blow to North London rivals Arsenal’s title chances while also ensuring that they will finish outside the top four for the second consecutive season.

Ange Postecoglou’s side will most likely participate in the Europa League in 2024-25, unless they lose to Sheffield United and Chelsea beat Bournemouth on the last day.

The manager was enraged by what he considers to be cultural problems at the club following the City defeat, and he hopes that new acquisitions in the summer would help to solve the concerns.

Speaking on the Inside Track Podcast, transfer journalist Pete O’Rourke stated that Spurs are hoping to sign at least four players in the next months, with a concentration on the back four.

Postecoglou will now have to work with a smaller budget.

According to reports earlier this year, Daniel Levy created two parallel transfer budgets, one for finishing in the top four and one for finishing outside of the top four.

How much will Spurs lose by not playing in the Champions League?

With 2024-25 marking the first season of a controversial but lucrative new enlarged format in the Champions League, Postecoglou is about to discover that losing out may cost Spurs £70 million.

That sum is calculated using last season’s distribution statistics and includes a participation fee, prize money, UEFA coefficient payout, and TV pool cash.

These funds would have been bolstered by increased sponsorship opportunities, as well as the potential to charge greater matchday and hospitality fees on European nights.

Analysis: Postegoclou’s budget for the upcoming season

The ambition of Levy and the rest of the ENIC management has often been questioned, yet Spurs are the best-run top club in the Premier League in terms of finances.

Their turnover surpassed £500 million for the first time in their most recent set of accounts, and they may have more headroom than any other side in terms of FFP (formerly known as Profit and Sustainability, or PSR).

The Premier League plans to implement a new squad cost control system and financial anchoring beginning next season, both of which will benefit clubs with a self-sufficient business model.

Even with a significant shortfall due to a lack of Champions League funds, Spurs can afford to spend heavily this summer without violating financial regulations. It is entirely conceivable to spend more than £100 million.

However, if the North Londoners do not qualify for Europe again next term, they will need to modify their spending at the next PSR assessment window.