‘Massive financial hole’ – Tottenham Hotspur face ‘catastrophic’ cost of relegation and no Europe

Tottenham Hotspur could lose out on ‘tens of millions’ by failing to qualify for Europe this season.

Meanwhile, the financial impact of relegation from the Premier League would be even greater.

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Spurs have not dropped out of the top flight since securing an immediate return during the 1977/78 season.

However, they currently sit just five points above the relegation zone in 16th place with 12 matches of the campaign remaining.

Their hopes of securing European football next term are also dwindling.

Winning the Champions League currently stands as their best chance of qualification.

Spurs’ sponsor headache

According to The Telegraph, Spurs could be hit by further off-field blows due to the status of their sponsorship deals.

At least one of their partnerships is due to expire at the end of the current season.

There are doubts at the club as to whether the sponsor will renew and on what terms they would do so if at all.

Meanwhile, a number of their partnership deals also include lucrative bonuses tied to European qualification.

The report adds that some even have clauses allowing for the contracts to be renegotiated or terminated in the event of relegation, leaving the club with a ‘massive financial hole’.

Spurs also remain without a sponsor for the Tottenham Hotspur Stadium, despite their £1billion home opening in 2019.

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Failure to qualify for Europe along with a potential relegation would significantly damage their hopes of securing a naming rights partner.

“The penalties for missing Europe alone run into tens of millions. That would be even bigger and potentially catastrophic if the club were relegated,” a source said to have knowledge of Spurs’ sponsorship situation told The Telegraph.

“Some companies are seeing relegation as a realistic possibility and are already reviewing their contracts,” another source added.

“It already seems clear that some deliverables, such as European qualification, will not be feasible, but the biggest fear is relegation.”

The club’s current kit deal with Nike runs until 2033 and is understood to be worth around £30million-a-year.

However, their front-of-shirt sponsorship with AIA expires at the end of next season.

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The insurance firm will then become Spurs’ global training partner until 2032 in a deal worth £10-15million-a-year.

This represents up to a £30million decrease from their current £40million-a-year agreement.

Spurs are yet to announce their next front-of-shirt sponsor from the start of the 2027/28 campaign.

The club will be hoping to resurrect their season under Igor Tudor in order to limit the potential financial impact lying in wait.

It follows the decision to sack Thomas Frank after eight months in charge.

Spurs are already out of both domestic cups and sit 13 points adrift of the top six.

However, they will qualify for next season’s Champions League by winning the competition for the first time this term.

Having finished fourth in the league phase, they return to action in the last 16 next month.

Spurs will face either Galatasaray, Juventus, Club Brugge or Atletico Madrid for a place in the quarter-finals.

Spurs issued a no-comment response when asked about their sponsorship situation by the Telegraph.