Tottenham are £5million in the hole thanks to a commercial fiasco that is no fault of their own – but Daniel Levy is working on a deal that will make up the shortfall.
Spurs will now turn their attention to preparations for 2024-25 after their controversial exhibition match against Newcastle United in Melbourne, Australia, which they won on penalties following a 1-1 draw.
The club are also in the process of finalising their sponsorship strategy for the new season. But one commercial partner who will not be involved in 2024-25 is Getir, the Turkish grocery delivery service.
Getir signed a three-year deal with the North London club in 2021 that saw their logo appear on the club’s training wear.
But as reported by Sky News, the firm has now pulled out of the UK market amid financial difficulties and has left Spurs with £5m in unpaid sponsorships fees.
To add insult to injury, images have emerged from Spurs’ Australia visit showing their players continuing to wear Getir-branded training kit, meaning the club are effectively advertising the firm for free.
New £10m Spurs training kit sponsor to step in
Spurs will exhaust every avenue to try and obtain the money from Getir, but if the company does not have the funds then they will simply be irretrievable.
However, as reported by Sport Business, Spurs are poised to announce sports betting platform BetMGM as their new training wear sponsor from next season.
The deal is believed to be worth £10m per season, an uptick on the previous Getir deal.
That will be considered a success by Spurs’ commercial director Todd Kline and chairman/co-owner Daniel Levy, who have made sponsorship revenue an A1 priority for the club’s strategic direction.
How significant is the new deal for Tottenham?
In isolation, the £5m which may be lost to Spurs is a fraction of their turnover, which topped £500m for the first time last season.
However, every penny counts in terms of their ability to operate under the terms of financial fair play (now called Profit and Sustainability Rules, or PSR).
Most analysis estimates that Spurs have more headroom than almost every other Premier League club when it comes to FFP. And that is thanks in no small part to their excellent commercial operation.
Their revenue from sponsorship and merchandising alone in 2022-23, the last year for which financial data is available, was a whopping £227.7m.
That is why they will still be able to spend big in the summer if the owners sanction the outlay, despite failing to qualify for lucrative Champions League football this season.