The long-term future of one of Tottenham’s most important commercial deals could be under threat.
For many financial analysts’ money, Spurs are the best run club in the Premier League.
Their focus on sustainable growth rather than high-risk activity in the transfer market means they are uniquely well-placed to spend under Profit and Sustainability Rules (formerly financial fair play, or FFP).
Daniel Levy‘s approach, which admittedly has frustrated Spurs supporters at time during his premiership, places emphasis on matchday income and commercial revenue.
Those two revenue streams are worth a combined total of £356m to the club.
And besides they generate bring in through the turnstiles at the Tottenham Hotspur Stadium, their front-of-shirt deal with AIA is the individual biggest driver.
But the latest developments from the political sphere could give us an indication about the long-term fate of the partnership with the financial services company.
UN Chief’s remarks could be threat to £320m AIA deal
As reported by the BBC, United Nations Secretary General António Guterres is now advocating for a complete embargo on advertising from oil and gas companies.
This proposed measure – which would apply in all industries, not just football – would not directly affect Spurs’ deal with AIA but could theoretically spark a chain reaction which leads to its collapse.
The Hong Kong company has huge stakes in fossil fuel companies that one time totalled around £2.4bn.
And while AIA have promised to withdraw completely from this market by 2028, their ongoing involvement with Spurs does not reflect well on the club.
Spurs have been recognised as the greenest club in the Premier League and have indeed done commendable work in this area.
But it could be argued that their alliance with AIA is something of an oxymoron in this regard.
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Analysed: Spurs’ deal with AIA
Tottenham first partnered with AIA in the 2014-15 season, making it one of the longest running commercial deals in the Premier League.
The current iteration of the deal was signed in 2019 and is worth £40m per year, or £320m in total over the course of the eight-year contract.
The timing of that deal roughly coincided with the opening of their new world-class stadium, which has undoubtedly propelled the club to a new level in terms of their ability to attract big-ticket sponsors.
If they choose not to renew the arrangement when it expires in 2027 (by which time it is likely AIA will likely still be financial invested in oil and gas), they would not struggle to find an alternative partner willing to pay the same fee.