Breaking news- Tottenham agrees to smash £228m record as two new off-pitch deals announced, levy not messing around this time
Tottenham Hotspur is poised to set a new club record following the announcement of two significant off-pitch deals this week. Analysts widely agree that Spurs are in a favorable position regarding their spending capabilities under the Premier League and UEFA’s Profit and Sustainability Rules (PSR). The club boasts one of the lowest wages-to-turnover ratios in the league, and its commercial revenue has been on a consistent upward trajectory. Last season marked a high point in this area, with Spurs raking in £228 million from sponsorships and merchandise sales. Projections suggest that the club will surpass this figure once again when they publish their accounts for the 2023-24 season, a period marked by a series of new partnerships and several profitable non-football events.
With the latest pair of commercial deals, Spurs are on track to exceed that total once more in the 2024-25 season.
### New Partnerships with BetMGM and Citygreen
Last week, Tottenham revealed a new partnership with Citygreen, a company specializing in artificial turf. Although the financial details of this deal were not disclosed, estimates suggest it could be worth around £1 million. Under this agreement, the Chinese firm will supply synthetic turf for Spurs’ training ground and other facilities.
Today, the club announced another lucrative partnership, this time with BetMGM, a prominent betting brand. BetMGM will become the front-of-shirt sponsor for both the men’s and women’s teams, replacing the previous sponsor, grocery delivery service Getir, whose UK operations folded, leaving Spurs with unpaid bills. While the exact value of the BetMGM deal has not been reported, it is estimated to be between £5 million and £10 million.
### Tottenham’s Financial Strategy Under PSR
Tottenham’s solid financial footing allows them significant flexibility in the transfer market this summer, despite their combined losses of £261 million over the past three years exceeding the three-year £105 million limit set by PSR. This is largely offset by the £188 million depreciation charge on their stadium and other PSR-deductible costs, providing the club with ample room to maneuver.
Chairman Daniel Levy, known for his prudent financial management, emphasizes sustainable growth. This means that even with planned squad overhauls under new manager Ange Postecoglou, every expenditure will be carefully balanced against the club’s financial health. Levy’s approach ensures that Tottenham will continue to operate within their means while still investing strategically in the squad to remain competitive.
In summary, Tottenham Hotspur’s recent commercial ventures and solid financial management under the PSR guidelines position them well for future growth. The new deals with Citygreen and BetMGM not only enhance their revenue streams but also highlight the club’s ongoing commitment to sustainable and strategic financial planning. This careful balance between spending and revenue will enable Spurs to remain competitive on and off the pitch.
