Tottenham’s On-field Success Increased Forbes’ Ranking
Ever since Mauricio Pochettino’s appointment as Tottenham Hotspur’s manager two summers ago, Spurs’ on-field success with the Argentine coach has increased their financial value in Forbes’ latest rankings for 2016.
According to the London Evening Standard, earlier this week, Forbes, the American business magazine, had placed Tottenham inside their top-10 most valuable football clubs for 2016 with a value of £700 million ($1 billion). This means Spurs are now gaining traction to become one of the world’s elites in due time.
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Now granted, the top three in Forbes’ latest rankings are at a whole other level as they sit above the £2 billion threshold. Real Madrid is valued at £2.52 billion ($3.645 billion), Barcelona sits in second with £2.46 billion ($3.549 billion) and Manchester United rounds out the top three at £2.3 billion ($3.317 billion).
Still, despite the large disparity between the super elite clubs and Tottenham, the Lilywites were able to increase their value by 69 percent this past year alone.
Most of that no doubt belongs to Mauricio Pochettino and what he has brought to the north London club since his arrival in May 2014. But another part of it has to do with Tottenham’s sponsorship deals with AIA (£16 million per year) and Under Armour (£11 million per year).
With Spurs’ 2015-16 season a resounding success by being a title contender alongside eventual champions, Leicester City, and securing Champions League football with a top-three finish, Chris Smith of Forbes points to Tottenham’s on-field success as the major reason why the Lilywhites are much more valuable now.
“For Spurs a lot of their rise has been because of on-field factors,” Smith told Standard Sport. “By performing so well this season they’ve earned themselves a bigger cut of the Premier League revenues.”
“Equally qualifying for the Champions League is huge for a club’s finances, next season you’ll get nearly £10 million just for taking part. For a team like Chelsea last year, who were about the tenth best in the competition, they earned £30 million.”
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“Compared with many other sports, in soccer, your performance on the pitch has much more of a direct impact on your value due to television revenues.”
“In addition, your success drives interest on other fronts, whether that be sponsors or merchandise sales.”
Another reason why Tottenham rose in Forbes’ latest rankings had to do with being based in London. Per James Benge, the author of this London Evening Standard article, he points out that four London clubs are inside Forbes’ top-20 list.
“Spurs’ ascent into the upper echelons of Europe’s financial table has also been aided by geographical factors,” James Benge wrote.
“Four London teams are in Forbes’ top 20, West Ham towards the bottom of the list but still valued more highly than AS Roma or Newcastle, Chelsea in seventh and Arsenal in fifth.”
Chris Smith adds one more interesting note as to why Tottenham, along with other London clubs, will only see their value increase over the years. And it has everything to do with money in the Premier League and playing in London with passionate fanbases, a great club history/heritage and brand new stadiums.
“Being able to live in London and be a part of clubs with great heritage and passionate, raucous fanbases would be a selling point for any player.”
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Essentially, Tottenham is currently valued at £700 million, but once you add in their £400 million stadium that will open for the 2018-19 season, plus the naming rights for said stadium, a potential kit sponsorship with Nike, and a 10-year agreement with the NFL.
Spurs’ financial value with more on-field success with Mauricio Pochettino who will be around for five more years, can only mean great things are in store for Tottenham to be much higher in Forbes’ most valuable football clubs’ list in the coming years.