What Does Champions League Actually Mean to Tottenham?

 What Does Champions League Actually Mean to Tottenham?

So Tottenham are in the Champions League.

Well, not quite. They are not yet qualified to the group stage, which is what most people tend to mean by the Champions League, but for arguments sake let’s assume they are. What does it actually mean?

An increase in revenue, indeed. By qualifying and participating in the group stage Tottenham will bank €5 million. With three home matches they will also count on another €5 million in extra gate receipts. A similar amount, around €5 million, will be due to Tottenham because they will have a share of UEFA’s commercial revenues. Another €3 million, more or less, can be added courtesy of increased sponsorship opportunities. All in all that is 18 million Euros more simply by being in the Champions League group stage. That is an increase in revenue of nearly 20%. These are the types of numbers that have businessmen salivating.

There is even more.

For every match Tottenham win they will be rewarded with €800,000 and half of that for a draw.

Make the quarter finals and with prize money, gate receipts and commercial revenue Tottenham will be looking at another €7 million.

Before the tournament begins a sum of the money expected is likely to be reinvested in the squad. Another part of it will be set aside for bonus payments due to the current squad for actually making the Champions League. This is the nature of the business and obviously not unique to Tottenham.

The true beneficiary is likely to be the brand. Tottenham Hotspur plc. Being in the Champions League will increase turnover and improve the EBITDA (the all important figure) but it is the concomitant association with the likes of Barcelona, Real Madrid, Inter Milan and Bayern Munich on those midweek nights where the true value of the Champions League rests for Tottenham. The clubs financial figures are already fairly healthy and prosperous. Tottenham even announced a fiscal 2009 pre-tax profit of £33 million in January 2010. Tottenham are moving forward financially with Champions League football but they will be making giant strides when they have their new stadium. The clubs share price was at its lowest figure for a year on 05/05/2010 but the reason for the fall was probably related to the delay in developing that very same new stadium. Perhaps investors are also wary of the total amount that will now be paid in bonuses affecting their earnings per share for the year. Ultimately, investors are counting on Tottenham Hotspur having a new stadium. It would be more beneficial to the club in the long run than Champions League football is in itself. Arsenal sell out almost every week and there are more than enough Londoners to go around. Having the stadium that Arsenal do makes Champions League football less of a necessity, not more. Liverpool’s position, having neither the new stadium or Champions League football, is disastrous. The plan in the Spurs boardroom was probably for the stadium to come first and then the Champions League after but Daniel Levy, the chairman, will hardly wish to complain.

Incidentally this will be the first time a single city will have three participants of its own. Three London clubs in the same year that the final is going to be in London.

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9 Responses to What Does Champions League Actually Mean to Tottenham?

  1. LI Matt says:

    I certainly hope they don’t do what Leeds did: start spending based on the assumption that the Champions League money will always be there.

  2. erik the viking says:

    Spurs are financial stable, no chance of doing a leeds.
    They need 4 quality players, costing approx 50M quid. They also have fringe players to sell: keane, hutton, jj, ohara, dos santos, etc…
    which could bring half of that amount back.
    Not to mention next year ends in 1.
    Champions League!

  3. Ardwickian says:

    That would be four london clubs.

  4. scott alexander says:

    Tottenham’s well regarded reputation for financial sanity versus Harry Rednapp’s much derided propensity to wheeler dealer excess in the great unknown of their Champions League fortunes. I think that they would be prudent to spend carefully. A single year of Champion’s League is often ruinous but it’ll be fascinating to see it play out. Well done to the Spurs for making it (and making it with a profit) either way.

  5. Eious says:

    It means that Tottenham should be careful not to spend a LOT more only to be kicked out next season

    They are not a lock for the 4th spot next season and chances are they won’t get it

    I doubt they make it far in the CL either so this could be a waste other than more money spent

    • K says:

      The lure of champions league football is a big draw for top caliber players. It’s the reason Tottenham, and to a greater extent more recently, Manchester City, have had to overspend to bring in second tier talent. It appears likely Tottenham will be among the seeded teams in the qualifying stage, which will improve their chances of at least reaching the group stage markedly. Now that they can offer champions league football to transfer targets, they may have been luck in the summer window than in years past.

  6. erik the viking says:

    sounds to me like none of you know what your talking about.
    Spurs always spend money and still are financially sound.
    So the fact they’re in thje Champions League means they can afford to spend a bit more. SIMPLE.
    There is absolutely no fear of doing a leeds.
    Weve never had champions league footy and still turned a profit.

  7. gerv says:

    spurs have been in good shape financially for the past few years (good stadium revenue, made europa 2 years back, sound sales of berbatov and keane). they do need to spend a little if they hope to compete in group play next year. They are deep in the midfield, so they could sell 1 or 2 (they have modric, palacios, lennon, kranjcar, huddlestone, bentley, jenas, and occasionally, bale). they need a backup to gomes. in the back, Dawson and King make a strong 1.5 defenders, but Bassong, Corluka and BAE could use an upgrade. upfront, there are some questions. can defoe handle the rigors of champs league (remember, he didnt exactly tear up the defense of the big 4 last year). crouch as experience, but he isnt striking fear in the hearts of others (save for set pieces). Pavvy may or may not be unhappy. Gudjonsen is not champs league quality.

    im a massive fan, so Im thrilled at our chances. i see Harry making a few moves to shore some things up. I doubt he will be able to go all in on a Torres level striker.

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