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News
Daniel Levy has £228m Tottenham takeover gambit amid Rothschild talks
Tottenham are seeking fresh investment, either in the form of a full or partial takeover.
Daniel Levy revealed that information in the club’s acco♍unts for 2022-23, which were released in April this year.
Financially, it was another excellent campaign for Spurs, thanks in part to their participation in the Champ🎃ions League but also their wider commercial strategy.
They broke the club record fo💙r turnover they set the previous season, registering £55🔜0m of income.
For context, ✃that is almost £100m more than North London rivals Arsenal over the same period.🌺
Sponsorshipꦿ and merchandise sales alone were wort✨h £228m, with the biggest deals being those with kit manufacturer Nike🌳 and front-of-shirt partner AIA🌊.
That will be a huge draw for any potential investors, with four groups linked already ✱to🥃 a deal for Spurs.
To explore how Spurs’ commercial operation might affect Levy‘s search for a deal, TBR sp🍬oke exclusively with author of the Price of Football and Liverpool University football finance lecturer Kieran Maguire.
Spurs can extract big cash from sleeve sponsor, but Champions League absence will have an impact
Since it became apparent that used car retailer Cinch were set to terminate their £10m-a-year contract, Spurs have been in talks with potentia▨l sleeve sponsors.
They are💧 yet to announce a deal, althougಌh are reporting that they are close to finalising a partnership that will represent a big upswing on the previous arrangement.
This reflects a wider trend ♍in football’s commercial industry, with the value of sleeve deals doubling since the 😼Premier League permitted them in 2017-18.
Maguire explains that, while Spurs can make big money from their sleeve rights, their absence fಌrom the Champions League will reduce their value.
“I think the sleeve market is becoming increasingly attractive because you’re looking at players side-on when watching on TV, and the industry is realising that.
“Chelsea had a £20m deal with Whale Fin, so there are upwards opportunities there. However, the thing that will hold Spurs back is that they aren’t in the Champions League.
“Far more people watch football on Tuesday and Wednesday than they do on a Thursday. Higher viewing figures are reflected in the value of any deal.
“If it is going to be a multi-year deal, however, there will be step-up clauses. For Spurs, it is imperative that they qualify for the Champions League.
“That being said, they would probably get another £2m or £3m in a season in the Champions League, while the money you received from UEFA themselves is going to be worth at least £20m more as a starting point.“
What is the status of Levy’s hunt for a stadium naming rights deal?
Spurs were late to the party in terms of sleeve sponsorship, only signing their f𒐪irst deal in 2021.
The reason? Because chairman and co-owned Levy believed that it could compromise the value o𝐆f a potential naming rights deal for their world-class new stadium.
The 62-year-old has since revers🍎ed that stance, but their search for a sleeve partner has once again highlighted the continued lack of a naming rights partner.
Chief commercial officer Todd Kline, whose replacement has not yet been named, failed in what h🎉e said was his main aim at the club, securing an ultra-lucrative deal.
Levy claims they have so far avoided signing a deal because they are enjoying the benefits of having their brand associated with hosting act Beyonce or prize fights involving Anthony Joshua, for 𒉰example.
However, the perception within the industry is that is likely window dressing and that the cash benefits of a dea𝄹l worth up to £200m would far outweigh the positives for the brand.
According to Maguire, Spurs have likely set their asking pr🌞ice too high and the potential value of their naming rights has fallen since the move to the stadium in 2019.
“With naming rights, there is a difference in culture between the US and the UK.
“Fans in the US have far more attachment to naming rights and there is therefore more value.
“Because there is no front-of-shirt sponsorship in the NFL and NBA, the first thing you associate with teams is the naming rights.
“I think they have set their asking price very high. And the danger is that, for every season after the stadium is build, the value of the naming rights decreases.
“Emirates and Amex got in at Arsenal and Brighton early on. The longer you wait, the more the original name enters the vernacular and it becomes more difficult to get people to use the new name. For example, I still call it ‘Twitter’ and not ‘X.’“
- READ MORE SPURS FINANCE NEWS: 𒀰Tottenham could no♏w match Arsenal as £60m off-pitch deal agreed
Levy will use commercial income as Spurs takeover incentive
With commercial income accounting for almost half of Spurs’ overall revenue, it will be a key consideration for an൲yone taking a majority or minority stake in the club.
Given that Levy has enlisted the Rothschild bank to court new investors, commercial income will surely be one of the most att﷽ractive elements of the club.
So how will the club’s position on a new sleeve deal and🌜 their overall approach to sponsorship affect their takeover value? Maguire explains.
“Clubs are sometimes keen to have short-term deals because there is upwards opportunities and you don’t want to lock yourself into a low price until the end of the decade.
“If you have a good commercial deal, you can use that as leverage to justify the price of the club.
“You can say ‘we have this money coming in until 2032. Therefore, if the investors are doing discounted cashflow calculations, they don’t see any negative impact.
“In many respects, Levy is Spurs’ biggest asset and biggest liability. He is their biggest asset because he is a very good negotiator. He’s their biggest liability because he tends to back his own judgement.
“If that works, great. If it doesn’t, nobody at the club will tell him he screwed up.”