Tottenham have missed the chance to sign a deal that would have made them £74m better off in recent years, according to the latest analysis.
Spurs are often considered the best run club in the Premier League, from a financial perspective at least.
While chairman and co-owner Daniel Levy‘s emphasis on sustainable growth has at times frustrated supporters, there is no denying that Spurs are in position to thrive going forward.
Profit and Sustainability Rules will change in coming years to focus on cash spent on wages and transfers as a proportion of overall revenue, rather than a cast-iron allowable loss limit.
Spurs’ wages-to-turnover is the lowest in the Premier League – and that is thanks to both their restraint in the negotiating department and their wider revenue strategy.
The stadium is a money-printing machine and their commercial operation is one of the most sophisticated in Europe.
However, if the latest study is to be believed, Levy and his colleagues in the Spurs boardroom have actually undersold one of their most valuable sponsorship rights.
Spurs could have earned £74.4m more from AIA deal
Tottenham have been partnered Hong Kong-headquartered insurance giants AIA since 2013, making it one of the longest running sponsor deals in English football.
The latest iteration of the deal signed in 2019 sees AIA pay Spurs £40m per season to be Spurs’ front-of-shirt sponsor.
However, a report from industry experts The Sponsor suggests that the North London club could be earning as much £49.3m per season from the arrangement.
Extrapolated over the course of the contract running from 2019 to 2027, Spurs could have netted an extra £74.4m more than the £320m they are due to trouser from the deal.
According to The Sponsor’s methodology, the £49.4m figure is the maximum that would be permissible for Spurs’ under the Premier League‘s Fair Market Value assessment.
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How Spurs’ AIA deal compares to other Premier League sponsors
Spurs are one of the most valuable clubs in the Premier League and are actively seeking investment.
As part of that process, Levy will be keen to illustrate the commercial value of the club to would-be investors.
Spurs’ deal with AIA is the least valuable of the so-called Big Six.
At £40m, the value is the same as Chelsea’s deal with Infinite Athlete, but the West London club are expected to announce a more lucrative deal this summer.
At the top end of the scale is Man City’s deal with Etihad, which is worth £67.5m per season, although that figure does include the naming rights for their stadium and training ground.
Arsenal’s deal with Emirates, which also includes stadium naming rights, is worth 20 per cent more than Spurs’ AIA deal at £50m per year.
Man United and Liverpool, who would traditionally have been the most appealing clubs to sponsors, have annual deals worth £47m and £50m respectively.
Spurs may hope that a naming tie-in with the naming rights for their home ground, which will be the responsibility of a new commercial director following Todd Kline’s exit to Chelsea, will bump up their total.