Tottenham battle with Man United for £150m off-pitch deal takes another twist
07/08/2024 12:30 PM
Tottenham and Man United are in financial arms race behind the scenes – and the latest news may just mean that the battle is about to intensify.
United’s revenue has climbed gradually in recent years but, in contrast to Spurs, has not shown any dramatic upswings apart from in seasons when they have qualified for the Champions League.
One of the biggest drivers for both clubs is commercial income – that is revenue generated from sponsorship, merchandise and other non-football streams.
United’s commercial income has risen from £197m to £279m over the last five season, a 42 per cent increase, while Spurs’ has gone from £136m to £228m over the same period, a 67 per cent increase.
New United co-owner Sir Jim Ratcliffe is keen to address slowing commercial growth and has said that a naming rights deal for a revamped Old Trafford could be one way to do so.
Spurs have been searching for a naming rights of their own deal since their new stadium opened in 2019.
And with West Ham and Everton also on the lookout for a similar branding deal, the consensus among experts is that the naming rights market will suffer as a result.
However, the latest developments from within the Premier League’s commercial sphere might give the likes of Spurs an advantage over United in the hunt for a naming rights deal
Spurs can exploit Man United’s dismissal of commercial chief
As relayed by Sport Business, Man United partnerships director Victoria Timpson is the latest high-profile departure behind the scenes at Old Trafford following Ratcliffe’s £1.25bn minority investment in February.
Timpson is vastly experienced having spent 16 years at United in total, two-and-a-half as the club’s most senior partnerships broker.
In the post-Alex Ferguson era, she has helped United generate billions in commercial revenue while sporting performance has left much to be desired.
One of the final deals Timpson orchestrated was the world-record front-of-shirt agreement with tech company Qualcom, which is worth £180m over its three-year deal length.
Significantly, that deal has no step-down clause if United fail to qualify for the Champions League – that is a major victory in negotiations and a departure from the structure of the previous deal with TeamViewer.
For Spurs, Timpson’s exit must be seen as an opportunity to get the edge over United when it comes to agreeing a naming rights deal.
Yes, Spurs have the obvious advantage of being ready to go with a naming rights deal, while it will be years until United have either revamped their stadium or moved to a new one entirely.
But United will have already conducted talks with prospective partners, who will be willing to wait if they think a better opportunity is available.
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How much can Spurs earn from a naming rights deal and why haven’t they got one already?
When the stadium opened, many analysts suggested that a naming rights deal could be worth £25m per season, or £250m over the course of a 10-year deal.
However, that figure is likely now closer to £150m given the time that has elapsed since the stadium move and given that the pool of clubs looking for a naming rights partner has grown.
Daniel Levy has previously claimed that they have not yet signed a deal because they were capitalising on having their brands associated with the likes of Anthony Joshua and Beyonce.
But whether the brand benefits outweigh the raw cash that could have been generated is up for debate.
Indeed, many fans feel that the absence of a naming rights deal is the fault of Chelsea-bound commercial director Todd Kline, who was given the task of securing a partnership when he joined in 2021.
