Tottenham forecasted for £250m windfall as another commercial deal struck
Confirmed. ✅
The ownership of Daniel Levy and ENIC is a divisive issue among Tottenham fans, but there can be no debate about their merits as commercial operators.
Since the move to the Tottenham Hotspur Stadium in 2019, matchday and commercial income have nearly trebled.
They have achieved this without a stadium naming rights deal, which Levy valued at £20m per season and exit-bound commercial director Todd Kline said was his top priority in North London.
Spurs‘ revenue stood at £550m in the last financial year. That put them 8th in Deloitte’s Football Money League, earning more than Chelsea and Arsenal and almost double AC Milan and Atletico Madrid.
As well as generating more cash through the turnstiles and on the concourses, the Tottenham Hotspur Stadium has established the club as a global brand – as much as fans might hate that word.
That has given them huge leverage in negotiations with sponsors such as Nike and AIA, who pay a combined £70m per season to be associated with the club.
And Levy, who has a hand in all commercial deals, has managed the club’s sponsorship portfolio carefully.
Liverpool are the only Premier League club with a more diversified commercial income, with just 36 per cent of Spurs’ revenue coming from their front-of-shirt, sleeve and kit deals.
And the club have just struck yet another sponsor deal, taking their total number of official partners to 23.
Tottenham’s latest commercial agreement
Spurs’ sponsorship prtfolio encompasses some of the biggest brands in the world, such as CocaCola, HSBC and Castrol.
Now, there is a new name on that list: the customer relationship manager brand Salesforce.
The partnership will also see Salesforce become the CRM partner for the Formula One-sponsored karting experience at the Tottenham Hotspur Stadium.
Accompanying the announcement of the deal, Spurs’ chief technology officer Rob Pickering said: “This innovative partnership will see the integration of Salesforce’s industry-leading software to create tailored, enriched digital experiences for our ever-growing fanbase.
“Importantly too, the partnership will be driven by purpose, with the delivery of vital STEM education to our local young people through Salesforce’s expertise and leadership in its field.”
Tottenham on course for £250m commercial revenue
No value has been reported for the partnership between Spurs and Salesforce, but industry benchmarking suggests that it will be in the low seven-figure bracket.
Tottenham’s commercial income was £228m in the last financial year and those consulted by TBR Football, such as sponsorship brokers and the finance expert Kieran Maguire, say £250m is on the cards.
It is telling that the Salesforce deal has a provision specific for the Tottenham Hotspur Stadium with the Formula One tie-in.
Spurs have turned their home ground into a money-printing machine, and the news that Haringey Council have green-lit proposals to allow them to host twice as many non-football events is a real boon.
Spurs staged the opening weekend of the NFL London games last Sunday and are set to welcome the Jacksonville Jaguars and Chicago Bears this weekend.
The partnership with the NFL, as well as becoming the go-to London venue for acts like Beyonce, means Spurs’ commercial acceleration will not slow down any time soon.
Understandably, there are some frustrations from supporters about the club’s emphasis on sponsorship and merchandise.
But with ENIC unwilling – and, due to their relative lack of wealth compared to some Premier League owners – potentially unable to underwrite financial losses, commercial strategy is key to the transfer kitty.
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