He is, very much, incompetent. Hired a guy everyone knew was under investigation for financial fuckery, kept him around after his ban(and still is keeping him around how btw), hired a guy as the new football officer who he didnt even know when he could start(still hasnt btw) & the only reason we arent under investigation by the government for skirting Russian sanctions right now is because Sanchez rejected going there. Not to mention the matter of either lying to the PL now after his co-owner(& majority owner) was indicted or lied(again) to everyone 10 months ago when he said nothing changed after Lewis handed over control(in name only) to his lawyer.He's not incompetent nor is he evil, let's be clear on that.
I do take issue slightly with the word "sensible" because, it insinuates that the correct path is always the sensible one and it isn't. The aim for Levy is to balance success on the football pitch and the value and ability to generate revenue.
Now this is why I dislike the word sensible because sensible would be to not take any risk to where we may become off balanced. It is exactly like walking. In order to stay balanced, you keep your feet on the ground because in order to progress forwards, you have to temporarily be off balance. arguably there is evidence that when the footballing side of thing's start to go the wrong direction (backwards), so we're off balance, we will spend but when once thing's are balanced again we stand still. What we see then is much like walking there is a need to temporarily take risks with both feet coming off the ground to progress forward, smaller, steps are less risk. The footballing side moving forward, is what gets the financial side to then progress forward, then risking the financial side by spending is what gets the football side to move forward. It is literally the same as walking but we always choose the sensible option of standing still to keep the balance.
So I don't have a course of action for you that is sensible, however the approach that may take the club forward would be to risk the financial side by letting the football side take a step forward by risking Kane leaving for free, hoping that because of the great recruitment we have done this season both in terms of Manager and in terms of players like Maddison yields success to where Kane stays, thus convincing him to sign a contract and then we have secured the financial side.