Confirmed CEO change could be critical for £60m Tottenham deal
Confirmed. ????
A major change in the boardrooms of one Tottenham’s key partners could lead the North London club to a substantial windfall.
While the approach of Daniel Levy and ENIC has at time frustrated supporters, they are considered one of the best run clubs in football from a financial perspective.
The Tottenham Hotspur Stadium has been utterly transformational for Spurs, as has an accompanying commercial strategy that raised £228m in the last financial year alone.
The club’s revenue was £550m in that season and is expected to have risen when they eventually release their accounts for 2023-24.
Given that PSR ties spending to revenue and that ENIC and Levy want Spurs to live well within their means, this is central to Ange Postecoglou and Johan Lange‘s recruitment and retention budget.
Spurs have one of the most diversified sponsorship portfolios in the Premier League and are believed to have earned over £100m from this stream alone last term.
Their biggest deal is with Nike, who pay approximately £30m per season for the rights to produce Spurs shirts and other merchandise.
Boardroom switch-up could be goldmine for Spurs
Spurs have been partnered with Nike since 2017, with the two parties agreeing a 15-year deal a year into the contract that will see the alliance continue until 2033.
Last year, it emerged that Spurs were rivalling Chelsea to become the latest club to be given the Nike Air Jordan treatment.
Air Jordan, the iconic Nike brand inspired by NBA legend Michael Jordan, have enjoyed an extraordinarily successful commercial relationship with Paris Saint-Germain branching out into streetwear.
In news which could be significant for Spurs, Nike have replaced previous CEO John Donahoe with Elliot Hill, who is believed to be a major fan of the Jordan brand.
With the value of a collaboration with Jordan valued by some sources as high as £60m annually, that will likely be welcomed by Spurs’ commercial department.
- READ MORE: Tottenham and Man United scouts were both in attendance watching Southampton player at the weekend
How Tottenham’s Nike deal compares to the rest of the Big Six
At £30m per season, the headline figures for Spurs deal with Nike make it the least valuable of any of the so-called Big Six clubs.
At the very top of the tree is Man United, who earn around £90m per season from German sportswear giants and Nike rivals Adidas.
Spurs do not have the global reach of United but Levy has previously claimed that their deal appears less valuable than it actually is because they have retained merchandising rights.
The Air Jordan contract may lead the two parties to restructure the deal, which is one of the longest in European football, in order to reflect revised value for both parties.
It is likely that Champions League or at least European football of some description would be a prerequisite to any deal with the Air Jordan brand.
What's Your Reaction?
