Tottenham Hotspur is currently the sixth-highest revenue generator in the football premier league, at £188 million. This is behind Liverpool, Chelsea, Manchester City, Arsenal, and, in first position, Manchester United, with a revenue of £488 million. The gap between the first and the sixth premier league clubs is, therefore, enormous.
In the world of football, money dominates, and therefore the financial status of Tottenham is important for the club to grow and become a giant. Tottenham have earned between £72m and £97m less than the five clubs in front over the last 5 years putting them at a major disadvantage. This ever-growing gap between the rich in the premier league and Tottenham means it is getting harder and harder each year to compete, but has the Chairman found the solution? More importantly, what does the future hold for the club?
The financial structure that Tottenham has is strict and confining. Harry Kane currently earns £120,000 a week, the highest at the club. Although this is an immensely large amount of money, arguably players who are far less talented in other clubs earn more, such as Manchester United’s Jesse Lingard who is earning £140,000 a week. This is just one of the many examples of Tottenham’s talented players who are “underpaid”. As a result, there is constant speculation that players will leave Tottenham in the transfer windows in order to earn the big bucks.
Football clubs’ financial performance is split into 3 different sections: match day revenue, TV and media, and commercial and sponsorship deals. In 2015 Tottenham’s three sections were: match receipts of £35m, TV and media revenues of £90m and commercial revenues of £56m. The main sponsorships came from AIA and Under Armour. Compare this to Manchester United’s totals: match day income of £108m, TV and broadcasting sums of £136m, and commercial activity revenues of £189m. This dwarfs Tottenham’s sections, with a rumoured £750 million over 10 years from Adidas for the United kits. By Tottenham’s building a new 61,000 capacity stadium, the largest club football stadium in London, the chairman Daniel Levy believes this would reduce the gaps in match day revenue and sponsorship. With a rumoured £400 million deal for the naming rights to the stadium, this would lift some pressure off the £800 million build cost. In this sense, the future looks bright for Tottenham.
The transition to the new stadium is one of the most important periods for the club, and an important determinant of the club’s future prospects. It is not an easy time for any manager or player. Arsene Wenger called it “the most difficult period of my life” when moving from Highbury to the Emirates. Pochettino needs to keep the core of the squad so that the Tottenham support is strong as they move into a potentially hard year of football at Wembley Stadium. The pitch size at Wembley was partially blamed for their poor performance, so one suggestion is to reproduce the pitch size to that of White Hart Lane. Wembley is currently 105m by 69m whereas White Hart Lane is 100m by 67m.
But on the positive side, Wembley is known worldwide and for any player to play there is an honour, so attracting some big names to improve the Tottenham squad while not breaking the budget is exactly what Pochettino needs to do in order to arrive in 2018 at the new White Hart Lane with a squad who are determined, committed and talented. Tottenham under its current ownership will never be able compete financially with the wealthier clubs, so Daniel Levy should be concentrating on the youth players that can be developed, to ensure they continue to play exciting football at the top level.
Original Image by Ollie Custis