It really seems as if Levy has a cap of £60m in the market, maybe that’s enforced by the loans on the stadium. There was talk of covenants on spending.
I haven’t seen the debt covenants, but that seems like it would a strange one. I’m not sure that the covenants would let them run around and sign 25 players at £50m and not ten at £100. I would expect that the debt covenants are written with a total value at some level. Usually (and things could be different!), these are in place for a certain level of interest rate coverage, or a percentage of debt to their EBITDA, or things like that. It’s all to protect the lenders and reduce their risk, which is why that total level matters a lot.
From the club point of view, there’s almost no way that the board and Levy would enter into this kind of agreement. The truth is, that kind of clause, where you limit the price you could pay for a player, would hamstring the club considerably. If it existed, and became public, you’d be completely shafted if other clubs were targeting the same players. I also don’t think that the club was that desperate or in such a terrible position to refinance their debts.
There was a time during Covid where the debt was renegotiated and locked in. I’m going by memory, but I think it was around 1.75%. Whatever the rate was at that time, it was a stroke of financial genius by Levy and the board. It gave them cost certainty (I feel like those terms were locked in to 2030 or longer), at the lowest interest rates we’ve seen. We all know there are a lot of reasons to dislike Levy and the board. But their financial dealings (in this aspect) are excellent.
TLDR; I don’t think that there is a debt covenant regarding individual player purchases. Also, I’m a nerd and find these things very interesting.