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Tottenham chief publicly hails Arsenal after £120m off-pitch deal struck
A Tottenham board member has saluted a key element of arch rivals Arsenal’s finance strategy.
The friction between the two clubs is not limited to their fanbases, with Spurs chairman and co-owner Daniel Levy previously admitting that Arsenal’s success in recent years makes him “sick.”
But while their might be little love lost in North London, the two clubs have similar ownership styles and business objectives which dictate their approach on the pitch.
Although Arsenal have been less conservative in the transfer market in the last two seasons, the ultimate aim of both Stan Kroenke and ENIC is for their clubs to be self-sufficient.
That is unlike Man City, Newcastle and Chelsea whose owners are willing to bankroll losses if necessary.
While neither Spurs nor Arsenal have managed to break even in recent seasons, a key element of their long-terms strategy to eventually do so is commercial revenue.
Arsenal are currently lagging behind Spurs here having generated £173m from sponsorship, merchandise and other trade in the last financial year compared to Spurs’ total of £228m.
But Arsenal are ahead of Spurs in the cash they generate from their two biggest sponsorship assets – their kit deal with Adidas and front-of-shirt partnership with Emirates.
Spurs director praises Arsenal’s most lucrative commercial deal
Spurs reportedly earn a combined total of £70m per season from AIA and Nike, while Arsenal’s total is believed to be closer to £100m annually.
Speaking to the YouTube channel, Tottenham director Jonathan Turner, who is a boyhood supporter of the club, shed light on the club’s approach to commercial partnerships.
In doing so, he highlighted something the two clubs have in common: striking ultra-long-term deals.
Spurs’ deal with AIA is next up for renewal in 2027 and the Nike partnership does not expire until 2033.
Arsenal’s deal with Adidas is the most lucrative in their sponsorship portfolio at £60m-a-year, representing a £120m upswing on the terms of the previous deal over the eight-year contracts.
That deal runs until 2030, while their partnership with Emirates expires in 2028.
That means the four deals will have run for a combined total of over 60 years by the end of their terms.
“We’re very lucky,” Turner said.
“We have two very supportive long-term partners in Nike and AIA.
“One of the philosophical approaches the club has which I fully support is to have really high quality, long-term partnerships.
“Big clubs have got their own sponsorships. There is always fierce competition from sponsors trying to work with clubs and clubs wanting to work with best quality sponsors.
“We’re not alone in that. But the tenure of those relationships are quite unusual. AIA has been a front-of-shirt sponsor for 10 years. Nike will end up being at least 10 years.
“They [sponsors] are a significant part of most big clubs, it’s not just Spurs.
“If you look at Arsenal, their shirt partner is Adidas. They have been a great partner to that club – long-term contracts allow you to plan.
“If you have these long-term partnerships, you can really plan everything that you want to do around the team.“
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TBR Analysis: Why are Spurs earning more than Arsenal?
Spurs are currently earning more commercial cash than Arsenal for a variety of reasons.
Chiefly, the Tottenham Hotspur Stadium has a number of commercial benefits aside from matchday income, with the stadium now the go-to outdoor venue in London for blue-chip non-football events.
Arsenal’s absence from the Champions League in recent years will also have had an impact.
They returned to the competition in 2023-24 after a seven-year absence, but the financial accounts for that season have not yet dropped.
When they do, the gap between the two clubs will likely have narrowed but only by a relatively narrow margin.