Thursday Spurs Chat
Thursday Spurs Chat
Thursday is a general chit-chat, Friday is Tottenham Transfer Talk which you can find here at 07:30 hrs GMT.
Fabio Paratici does not have to go to Daniel Levy each time and ask if this is OK.
Paratici has a transfer budget and a wages budget, it is his job to use them as he sees fit, not as Daniel Levy allows him to.
Levy is obviously kept informed, but just like any Director or Board Member with responsibility, Paratici has the autonomy to run the football side of the business as he sees fit within the club vision.
I explained our finances briefly yesterday, how other clubs have greater club generated income than we do, how we haven't seen the benefit of fans in the stadium for a full season yet and the added advantage, despite what the limited think, of Daniel Levy as our chairman.
He has put our loans on very low interest rates, thanks in part to us showing a world record profit for a football club and demonstrating to the banks what a safe sound investment we are.
Without that we would not have got the interest rates we are on and would be paying more now.
Tottenham do not want to win just one trophy and wait 10 years to win another, the goal is to win and keep winning.
That isn't achieved by luck, nor is it achieved by simply building a football team.
The first and most important step is building the infrastructure and the income to pay for it and that income must be as guaranteed as it can be, rather than hopeful on achievement.
This is why the large clubs want a European Super League, to guarantee a level of income from TV and broadcasting rights, money which the UEFA Champions League would lose to them.
To build a winning future, Daniel Levy has first had to build a winning company off the field and any entrepreneur will tell you that diversifying your income streams is essential, because if one dries up for any reason, you are not destroyed.
Levy has thus built a stadium to:
a) generate a greater income through football
b) generate greater commercial sponsorship opportunities
c) generate to ability to hire out the stadium and receive revenue from hospitality, food and drink, up to I estimate £80-100m
d) generate money year round from non-footballing functions, tourism etc.
e) prepare for hosting an UK NFL franchise team to be based in London
f) host NFL games to push into an emerging market, the USA, where the potential for growth is huge
On that point, let me say that football/soccer supporting is in its infancy, there is a whole nation yet to be converted and so being in at the beginning is essential.
If Tottenham and the Tottenham Hotspur Stadium can appear on US TV stations while showing the most watched sport in America, then Spurs are seeping into the subconscious.
There is a link to be made to the San Antonio Spurs and to New England for marketing purposes with the natural link in the names. Tie the two together and you'll gain more fans and more people searching for each others results, the beginnings of support, the beginning of raising awareness.
We can't wait until football has grown out there, we have to be in marketing before it does, ahead of the wave, not after the wave.
Only a fool would not see the financial possibilities the American market offers or the potential for growing the Tottenham Hotspur fanbase, which in turn means greater commercial sponsorship income with a greater audience to market to.
So, the foundations have been built and the foundations of breaking America are being built.
Covid, as my recent financial piece showed, has affected our progress and naturally has affected us on the field too.
We could not throw money at football when the money isn't coming into the club.
If you think Joe Lewis can just give money to the club for players then you are being dishonest with yourself and haven't understood what happened at Manchester City for instance (commercial sponsorship funded, OK dodgy deals with family and friends, but still commercial sponsorship.
That is the way Newcastle United want to go if they can overturn the Premier League ruling brought in to stop it.
No, the stadium is our money generator, our greatest asset.
The next step should be to build a luxury hotel to accommodate the celebrities and stars who will attend events at the Tottenham Hotspur Stadium, adding another income stream.
OK, now naturally, once you have had a downturn in finances, then a period of consolidation needs to happen before you push forward.
Pressing financially ahead too soon will jeopardise the progress of the long-term project, to win trophies on a very regular basis.
Our low interest rates help us here, as the stadium once again pays for itself and puts coffers in our pocket.
From White Hart Lane to the Tottenham Hotspur Stadium is £200-250m extra income, to begin with.
Our wages have increased over £100m since 2016, the stadium has paid for that.
Naturally we have greater outgoings but you can see there is going to be money for transfers.
Let me take you back to Covid and an empty stadium that reduced our income by a very conservative £100m.
A £100m reduction in revenue, plus an extra £100m to pay in wages equals £200m or all extra the money the stadium would generate.
Patently obvious how that affects a transfer budget and a wages budget!
We were suddenly in a climate where we had to hunt for bargains and cheap players.
Fans back in the stadium pushes the income back up and puts us in a different transfer level.
We have Paratici tasked with building a squad but he can't just go out and buy all the top players, no he has to be canny about it.
he has to decide which players he pays the bucks for and which he can pick up below their true market value, such as players on free transfers or with a year remaining on their contracts.
For him it's a juggling act, finances are finite.
I hope I have explained this in a way even the anti folk can understand and finally come to terms with.
This is the real world situation the intelligent assess the club and its chairman against.
Generating the money comes before generating the football as the money pays for building the football.
Simple as that.
COYS
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COYS
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