Tottenham Talk on The Stadium Debate
Tottenham Talk on The Stadium Debate
The club fans are divided once again and you all know how...
Us intelligent fans who see the bigger picture and how things for into it, who understand money dictates football and thus building the business to generate income is essential to win trophies...
And then there is the agenda driven lot who believe FFP allows Sugar Daddies to just give clubs money and that our future should be at the whim of some generous benefactor.
UEFA do not want Sugar Daddies supporting clubs, they want self-sufficiency, they want sustainability, exactly the way Spurs have been built and are continuing to be built.
The issue this time is The Tottenham Hotspur Stadium being used for other events.
Now the issue with them, I assume, isn't the fact the stadium is earning the club money when it would be empty and earning us nothing.
It can't be that because that would be the dumbest of dumb positions.
No, their grief I believe, is that the Tottenham Hotspur brand, which they don't care about anyway, being a business thing, is not glaring you in the face everywhere you look.
Prior to building a multi-purpose stadium to generate money for Spurs from 24 non-footballing events, potential users will have been consulted over what they want and the matter of how much advertising or Spurs branding should be on view will have been discussed.
We have a lot of electronic advertising.
We as fans must remember these events are not about Tottenham Hotspur, they are about the events themselves and those event stakeholder would not want anything detracting from that.
They will want event specific advertising, they will want the opportunity to sell advertising or have a cut of advertising revenue.
They are businesses themselves.
The club, I would suggest, want The Tottenham Hotspur Stadium, to be known as the home of NFL football in the UK, the home of world class boxing, of major music events etc.
We have the Rugby League Cup Final which was previously at Wembley.
Clearly the consultation process before it was designed and during it's building has been a huge success, as events like the Rugby League Cup Final show.
Everyone attending the event will know where they are, there are logos etc in the walls, the name is printed on their ticket, they WILL look at the 7ft high cockerel, they will talk about and perhaps use the skywalk.
TV company commentators will talk about the venue, they will therefore be promoting Tottenham Hotspur to a new and wider audience.
Indeed there may well have been discussions as to a minimum number of time the Tottenham Hotspur stadium, thus the club name, is said on air.
You are not going to get the stadium know as the home of XYZ if Spurs is splashed everywhere, shoved in your face and demanding attention as the main attraction.
All promotion for the boxing match for instance, is advertising the venue, is advertising the Tottenham Hotspur Stadium.
The club is getting exposure and will get exposure from the events.
I think an issue we don't know yet and one which fans need an indication of, to help others realize the importance to the club of these events, is how much the clubs earns from staging an event.
Let me go off at a tangent here, major sporting events are tourist attractions, they bring tourists to an area.
If you have a major hotel next to your venue, then security conscious superstars will use it and provide the club with another revenue stream.
Each event can host 6,000 VIP guests, ideal to have a luxury hotel filled with VIP's plus the main attractions and their entourage.
The more revenue streams you have as a business the better, you are not affected so heavily is one reduces.
So, if we have a hotel, housing tourists, with climbing walls, skywalks, top quality food and drink and a major sporting event, we are maximising the income opportunities.
The world title boxing bout tonight is being attended by 68,000 spectators...
But let's assume these 24 non-footballing events are attended by 62,000 for half of them and 68,000 for the other half.
68,000 x 12 = 816,000
62,000 x 12 = 632,400
Total = 1,448,400
That's around an extra 1.45m people spending money in the Tottenham Hotspur Stadium.
Are we going to earn £2m per event?
Are we going to earn more?
£3m per event bring us an extra £72m.
That gives us an income where we can be competing with the biggest teams in the transfer market and wages.
That takes us regularly to the winners table, our stated aim.
To knock the club for doing that, to knock ENIC and Daniel Levy for doing that is just daft beyond belief.
For Spurs that particularly means commercial sponsorship, Spurs can offer what few other clubs can offer and thus can charge premium prices.
The borough will benefit from investment, local business will benefit, local attractions will benefit and it is up to individual business and councils to take advantage of the regeneration opportunities Tottenham Hotspur is proving the area with.
It is not for Spurs to do it all for them.
Local householders could benefit by renting out their homes for the duration of an event and taking a holiday.
Having a top class hotel next to a sporting venue therefore increases security for VIP's, pop stars, boxing stars, sportsmen etc, public figures etc.
Presumably the deal is the same for boxing etc that the NFL have in that they pay a set fee for the use of the stadium and Tottenham get all the money from catering and merchandising.
Bottoms Up Beer provides the technology for the glasses being filled quicker from the bottom and they claim the first NFL game saw £1m in beer sales alone.
The stadium set a European record for the sale of beer and if more beer had been available more would have been sold.
Taking that into account, I would suggest the venue is going to make more than £2m per event when you add in the stadium rental fee.
Having looked into this a bit more, I believe out target figure is to earn £3m per event.
So our target is to bring in an extra £72m per year, however with the amount of beer sales beyond expectations, that figure may be exceeded.
If we host 25 football games a season and bring in £2m per game, that's £50m...
Plus £3m from 24 non-sporting events, another £72m...
Tottenham Hotspur are generating £122m of sustainable profit.
The important factor here is that money is basically guaranteed, there are no loan fees, nothing needed from an owner that would have to be paid back in some form, as per FFP.
Just money to invest in the team.
Well that's it for this morning's offering folks.
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4 comments
You sound very confident Clive. Is there something you can point us to or explain for us that shows why we should understand that. I don't doubt you're right but not all of us are quite as in touch with everything that goes on at the club so some guidance may prove helpful. Not only for us but others that may have similar reservations.
The long term growth is the plan, you do that with guaranteed income, you don't stretch yourself with a windfall, that if you don't make the Champions League financially stretches your club so you have to start selling your better players.