Tottenham race against time to seal £42.5m off-pitch deal, talks happening now

Tottenham are in a race against time to secure maximum value for a deal that could be worth up to £42.5m.

Spurs’ commercial revenue has more than quadrupled over the last decade, from £56m in 2014 to an expected £228m-plus in 2024.

Their most lucrative sponsorship deals are with AIA and Nike, front-of-shirt and technical partners who pay £40m and £30m per year respectively.

The latest lucrative addition to their sponsorship portfolio is BetMGM, who have agreed a deal believed to be worth around £10m-a-year to have their brand displayed on Spurs’ training wear.

However, Spurs are still waiting to announce their latest sponsor deal in a category that ranks just behind front-of-shirt and kit manufacturing deals in terms of profitability.

And they are running out of time to secure the most lucrative deal possible.

Spurs to strike sleeve sponsor deal before pre-season tour?

Overseas pre-season tours are lucrative business nowadays – in more ways than one.

As well as an upfront fee from event organisers, a cut of ticket sales and merchandise opportunities, clubs can also maximise their pre-season income by signing relevant commercial deals.

For example, a key reason behind Newcastle’s decision to tour Japan in pre-season is because Adidas, the club’s new kit manufacturer, consider the nation a key market.

Spurs can take advantage of this to secure maximum value from a sleeve sponsor, which they have not yet announced following the news that Cinch would not renew their deal for 2024-25.

Sleeve deals for a club of Spurs’ stature can be worth up to £20m per season.

Although it eventually through at the eleventh hour, Spurs were previously close with signing a three-year £42.5m sleeve deal with the South Africa tourist board.

That will act as a benchmark for Spurs who, like Newcastle, will tour Japan this summer, beginning with a match against Vissel Kobe in Tokyo on 27 July.

As reported by football business journalist Łukasz Bączek, Spurs remain in talks with potential partners ahead of that date.

• READ MORE SPURS FINANCE NEWS: Tottenham battle with Man United for £150m off-pitch deal takes another twist

How does commercial income help Spurs’ PSR position?

As far as Premier League clubs go, there are not many who are in as comfortable a PSR position as Spurs.

Years of the sustainability-first approach employed by chairman and co-owner Daniel Levy means that the club have hundreds of millions of headroom under Profit and Sustainability Rules.

Their world-class stadium is a money-printing machine, not just on matchdays but also when they are hosting lucrative non-football events over the summer.

One area they could push the envelope is through a naming rights deal for the stadium, which could be worth north of £15m per year.

However, Levy has previously said that Spurs have deliberately chosen no to select a partner yet as they are enjoying the benefits of having their brand associated with the likes of Anthony Joshua and Beyonce.

And while Spurs are not likely to depart from their sustainable approach while Levy and ENIC remain at the helm, the PSR headroom could be made use of by a new owner in future.

Levy has explicitly said that he has conducted talks with potential investors, although it is not known whether he is seeking a minority or majority investment.

If a new regime wanted to be more ambitious in the transfer market in future years, Spurs’ hugely impressive commercial income would be one of many factors that would give them ample room to do so.