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Thursday, 8 September 2016

Stadium benefits stretch beyond a bigger crowd


For Tottenham Hotspur to grow, the Tottenham Hotspur brand has to grow. In the modern game it is not simply about creating a football team, but creating a club that has major sponsorship income and a business model that is sustainable. Relying on TV money without building other income streams puts a club at risk, the loss of Premier League football can have devastating consequences.

It is imperative for them both that Aston Villa and the 7th richest club in the country, Newcastle United, make it back to the Premier League at the first attempt. If they don't then they could go the way of others before them and struggle to regain a place at the top table. Sentiment doesn't get promotion. Newcastle have clearly decided it is imperative by persuading Rafa Benitez to stay, he won't be on a small wage and will be the best paid manager in the Championship by a country mile.

There is strong evidence that stadium redevelopment has a powerful impact on a club's public and business profile, in addition to the benefits that increased capacity naturally brings. The new Spurs stadium has been the catalyst to bring regeneration money into Haringey.

Without the stadium there simply would have been no regeneration money coming into the borough, there hasn't been for years, always another priority somewhere else. Building the stadium and the regeneration money now coming into the borough will attract further development because money pouring into an area attracts more money and further development. It's the same principle as a party and asking who is going before you make your decision. People want to be part of something, to engage with other people and regeneration money is the same, it maximises the benefits that come from an investment if resources are added to.

There are more benefits with the new stadium build, it will make Tottenham more attractive for ground sponsorship, there are opportunities for revenue diversification, and the development of links between clubs and community, something we are already engaged in through the Tottenham Hotspur Foundation.

Building a new stadium, as we have seen, can be a long process when outside influences want to prevent you doing so for whatever reason. Part of our funding strategy is naming rights. You can't arrange a sponsor for naming rights until you have agreement to build a stadium, for one thing the price would have changed. With the new TV deal sponsorship has taken a hike so what we can get now is vastly different than in say 2007 plus of course NFL fixtures gives us American TV coverage. The price we achieve should be a premium one, but UEFA Champions League qualification will have a bearing on that too, we need to be qualifying for the tournament regularly.

We will of course have commissioned a detailed analysis of the naming rights market,to arrive at our figure. New LED screens showing sponsors adverts will allow us to generate far more effective partnership deals and brand exposure, which pushes their potential price up and increases revenue.

New stadiums also have more options for food, beverage, concessions, and apparel. There could be an increase in average ticket prices. The £30 million is achievable but the team will have to work hard with its partners to find the right deals.


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