Too Big to Fall? What Relegation Would Cost Tottenham

By: Evan Upatham

April 7, 2026

Photo Credit: BBC

At the start of the Premier League season in August, the idea of Tottenham Hotspur being relegated would have sounded absurd. As one of the “Big Six,” the Spurs have always been a club with the wealth and prestige to compete with the very best. In the past 10 seasons, Tottenham has never finished in the bottom half of the league except for last year, when they finished 17th out of 20 teams. However, that same year, they still managed to win the UEFA Cup. Now, they find themselves in 17th place again, one off from relegation, with 7 games to play and no signs of life as the team finds itself on a 13-game winless streak in the Premier League. How did Tottenham get here, and what would happen if they actually got relegated?

Tottenham’s situation has been building over a few key issues. First, they’ve had managerial instability, recently parting ways with Igor Tudor after just 44 days and 7 matches, highlighting a lack of stability and direction within the club. On the field, results have been inconsistent, with the Spurs dropping points against bad opponents and failing to keep pace with mid-table teams. Player recruitment has also been hit-or-miss. Despite having the sixth-highest transfer spend in the Premier League, Tottenham has failed to bring in enough players who can consistently earn the team wins. At the same time, expectations have remained at the “Big Six” level, making Tottenham the most disappointing storyline of the season by far. 

The best way to understand what relegation would cost Tottenham is to look at Leicester City, who were relegated to the Championship Division in 2025. Financially, the drop was immediate and severe. Leicester’s broadcast revenue was £117.4 million in the Premier League but fell to £55 million after being relegated, even with parachute payments, or funds the Premier League gives to relegated clubs to soften the financial hit. After those parachute payments expire in 3 years, Championship clubs earn only around £12 million in broadcast revenue, showing just how steep the drop-off would be for Tottenham.

At the same time, Leicester recorded a £71.1 million pre-tax loss in the 2024–25 season. A major driver of this was a decline in player sale profits, which fell by £64.5 million year-over-year. This highlights how clubs rely heavily on player branding to stay financially stable, something that becomes much harder after relegation. Many of the Spurs best players may leave the club in the event of relegation because they are “too good” for the Championship Division, including Rodrigo Bentancur, James Maddison, Dejan Kulusevski, Conor Gallagher, Cristian Romero, Micky van de Ven, and Richarlison.

What makes relegation so damaging to clubs is that the expenses do not decline nearly as quickly as revenue. Leicester still carried a wage bill of £152.9 million even after dropping divisions, creating a massive gap between their income and expenses. As a result, the club was forced to borrow an additional £50 million and even “factor” future transfer fees, essentially taking money early at a discount to manage short-term cash flow. By comparison, Tottenham has an estimated wage bill of £222 million, meaning they would face an even greater financial strain if relegated. 

At the end of the day, Tottenham’s situation shows how fragile even the biggest football clubs can be. A team that once had Champions League expectations could suddenly be dealing with minimal revenue, a costly wage bill, and having to sell players just to stay afloat. Leicester’s experience thus far shows that relegation is not only a bad season, but also a full reset that takes years to recover from. Leicester is still in the Championship Division and struggling to avoid relegation to an even lower division. For Tottenham, relegation wouldn’t just mean a year in the Championship. It would completely change how the club operates, spends, and competes.