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Tottenham set for £110m windfall amid Goldman Sachs reveal
Cristian Romero spoke for many a bedrock Tottenham fan when he criticised Daniel Levy and ENIC following the 4-3 defeat to Chelsea on Sunday.
The World Cup winner suffered a muscle injury that is expected to rule him out for weeks in the loss, which was the fifth match out of their last six that Ange Postecoglou’s side have failed to win.
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But Romero made far more headlines for what he said to Spanish media, however.
The 26-year-old defender – who, incidentally, is wanted by Real Madrid – blamed who he called “always the same people” for Spurs’ lack of progress on the pitch in recent years, referring to the board.
Daniel Levy is the Premier League’s longest-serving chairman and has trousered more than £50m in salary payments since he began the role.
As a co-owner, he will likely also cash in to the tune of four or five times that amount if and when Tottenham sell a minority stake to a new investor.
Amanda Staveley and the £500m-strong consortium she has assembled are looking for a new football project. They have zeroed in on Spurs, although AS Monaco remains a possibility too.
Levy is understood to value the club at £3.75bn and has commissioned the Rothschild bank to look for potential new equity partners to, in his own words, invest more in the team and infrastructure.
At that price, a full takeover would represent a world record for a football club.
In the world of football finance, it is generally accepted that £3.75bn is a fair price. But why?
The matchday income generated by the Tottenham Hotspur Stadium is a factor, yes. But at £118m at the last count, it is ultimately only one element of the club’s business operation.
The answer is more about their diversification of revenue. In fact, only Liverpool can claim to be les reliant among Premier League sides on their ‘big three’ sponsorship deals (shirt, kit and sleeve).
And the latest insights from one of the world’s leading financial institutions, Goldman Sachs, shows how Tottenham’s revenue will continue to soar even if results on the pitch remain insipid.
Tottenham Hotspur Stadium will generate £110m from non-football events
Since moving into the Tottenham Hotspur Stadium in 2019, Spurs’ commercial income has tripled. And that is even without a lucrative naming rights deal pined after by Levy.
Commercial income – that is revenue from sponsorship, events and merchandise – is separate from matchday income, I.e., the money Spurs generate through the turnstiles at home games.
One of the keys to this success has been the non-football events that the 62,850-seater stadium, which is widely viewed as one of the best in the world, routinely hosts.
As well as the NFL’s London Games and heavyweight prize fights, the Tottenham Hotspur Stadium is one London’s go-to venues for music acts.
The likes of Beyonce, the Red Hot Chilli Peppers, Wizkid, P!NK and Guns N’ Roses have played the stadium, to name just a few.
However, until recently, the number of non-football events Spurs have been permitted to host has been capped at 16 by Haringey Council.
But in August, the North London club obtained a new license to host 30 non-football events.
The latest details, outlined in an analysis of from , show that 16 non-football events were worth £55m to the club in the last financial year.
More or less doubling the number they can host means that non-football events could be worth a staggering £110m from now on.
Will additional commercial income allow Tottenham to spend more in the transfer market?
Unlike several teams in English football, Tottenham are clear of any financial fair play (now called Profit and Sustainability Rules) issues.
However, having the freedom to spend does not necessarily equate to having the inclination to do so as far as ENIC and Levy are concerned.
The very fact that they are seeking minority investment and the capital injection that comes with it is evidence that they either lack the liquidity to fund major investment or do not want to do so.
Tottenham’s spending on amortisation (which is how transfers are accounted for over a period of time) and wages has risen in the years following the stadium move, granted. But not as fast as revenue has.
Ahead of January, Postecoglou would surely love for Spurs to strengthen in the transfer market.
But there is unlikely to be a major departure from Tottenham’s self-funding model, especially without Champions League income this term.