Tottenham have indirectly become involved in a commercial network with two other Premier League clubs.
Ange Postecoglou has engineered his first two signings of the summer in two 18-year-old midfielders, Lucas Bergvall and Archie Gray in recent days.
It promises to be a busy summer for the recruitment team in North London. And the same is true behind the scenes in the commercial department.
They have already announced new sponsorship deals with BP Pulse, Castrol and Citygreen,enhancing commercial revenue that stood at a record £228m last year.
That figure was behind only the two Manchester clubs and Liverpool.
Now, with their latest sponsorship arrangement, they are set to play a starring role in a Premier League sponsorship groups with two of the clubs they surpassed in that department.
Spurs, Newcastle and Wolves all sign with company
Tottenham announced on Monday (1 July) that they had partnered with BetMGM, who have become the club’s new training kit sponsor.
They replace Getir, the Turkish grocery delivery service who were recently forced to exit the UK market because of intense financial difficulties.
The value of the deal has not been disclosed but is believed to be worth around £10m per season.
Interestingly, Spurs are not the only club to sign with BetMGM in recent times.
Wolves announced them as their official betting partner last week, while Newcastle United have renewed a similar deal they have with the company.
The Spurs deal will be by far the most lucrative for any of the respective clubs, illustrating how far ahead they are of the two other clubs in commercial appeal.
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Tottenham’s commercial operation explained
Spurs’ two biggest sponsors are their kit deal with Nike and their front-of-shirt deal with AIA, which are worth £30m and £40m per year respectively.
Those are both long-term contracts, with Spurs locked in for the foreseeable future.
While there may be step-up clauses in those deals related to on-pitch performance, the margins will be relatively negligible.
Therefore, any value that Spurs create over the next few years will need to come from other sources.
They are in the market for a new sleeve sponsor, which recently has become the third-most lucrative element of a club’s commercial repository.
No news about that has been forthcoming, but the three-year £42.5m deal they almost struck with South Africa’s tourist board gives an indication of the kind of value they will be looking for.
Elsewhere, Spurs are still looking for a naming rights deal for their world-class stadium.
Daniel Levy has claimed that the benefits of Spurs having their brand associated with concerts and other non-football events they host has so far outweighed the raw financial uplift they could get from a deal.
But with a new commercial director expected to be appointed at some point in the near future, that could change at any time.
And with £150m potentially up for grabs for a long-term naming rights deal, there is scope for Spurs to further grow their commercial revenue in future years.
