ENIC and Daniel Levy are once again proving that they are best in the business when it comes to generating revenue, with Tottenham poised to bank a substantial commercial windfall.
Spurs‘ commercial income totalled £227m in 2022-23, the last financial year on record. That was over 40 per cent of their overall revenue for the season.
They also have one of the most diversified commercial portfolios in the Premier League, second only to Liverpool in terms of the depth and breadth of their sponsorship inventory.
The move to the new stadium in 2019 has been the most transformative event in the club’s history – financially at least.
As well generating well in excess of £118m in matchday income per year, the Tottenham Hotspur Stadium has also become a magnate to sponsors and event promoters.
Spurs have hosted concerts for some of the biggest artists in the world, including five sold out Beyonce shows last summer and Travis Scott and P!NK in 2024.
And in a significant development, Tottenham have also been given permission by the local council to double the number of events they can host per year.
But perhaps the most high-profile use of the stadium is the NFL’s London Games, which have been played at the stadium since 2019.
Spurs business continues to be lucrative
Over the next two weekends, the Tottenham Hotspur Stadium will host two NFL matchups. Spurs agreed to stage the London Games after the NFL agreed to give them £10m towards construction costs in 2017.
The New York Jets will face Minnesota Vikings on Saturday, followed by the Jacksonville Jaguars clash with Chicago Bears exactly a week later.
The exact fee that Spurs receive from the NFL is not known, but we do know that Spurs are believed to have earned £15m for the five Beyonce shows in May last year.
That suggests that a £3m hosting fee, meaning Spurs will likely be in line to bank in the region of £6m over the course of the two NFL weekends.
Furthermore, TBR Football understands that Spurs can generate close to £1m from catering alone on Spurs matchdays. That’s another £2m, taking the total to £8m.
In reality, that figure will likely be higher given that fans paying to see NFL will pay higher prices than football supporters.
Of course, there are costs associated with hosting the events that will affect the bottom line, but Spurs are in for a big payday regardless.
Spurs’ PSR status and future ownership
Spurs have ample headroom in terms of PSR, despite what the club has suggested in order to justify rising ticket prices and the phasing out of concessions tickets.
Their commercial income, coupled with their ever increasing matchday income and excellent cost control in terms of wages and recruitment, has essentially insulated them from PSR issues.
The Premier League‘s PSR system limits clubs to losing £105m over a rolling three-year period, while UEFA’s system caps spending on wages, transfers and agent fees this season to 80 per cent of revenue.
The Premier League are trialling a similar system to UEFA’s on a non-binding basis this season and are expected to implement it fully from 2025-25, with the cap at 85 per cent of turnover.
Spurs’ huge margin for error under both systems makes them attractive to investors, with Levy and ENIC currently looking for a new minority partner in a deal that could be worth more than £500m.
Leave a Reply