Tottenham have suffered a major blow in terms of their ability to compete with Man United in the transfer market.
While Spurs’ profile is growing exponentially overseas, they are still very much the junior partner in the so-called Big Six in terms of their global brand.
Despite a dearth of major success on the pitch, United are at the other end of the spectrum – one statistic routinely pushed by the club’s marketing department is that they have a billion fans worldwide.
That figure has been questioned by many commentators, who suggest that it uses a rather loose definition of ‘fan’.
But there is no disputing that United’s brand is huge both at home and abroad.
That has generated huge commercial revenues of £303m at the last count, while Spurs income from sponsorship and merchandise was £228m.
That gives them greater capacity to spend in terms of Profit and Sustainability Rules, as does their superior broadcast and matchday income.
Tottenham to fall further behind Man United in key area
Spurs are currently spending pre-season in East Asia, where their star has risen hugely because of Son Heung-Min.
South Korean fans are a permanent fixture at the Tottenham Hotspur stadium as a result, which helps Spurs generate more matchday and commercial income.
The North London club earned £118m on matchdays in 2022-23, which was second only to Man United’s total of £136m in the Premier League.
The Tottenham Hotspur and Manchester United club crests on their first team home shirts on May 14, 2020 in Manchester, England.
But there is no disputing that United’s brand is huge both at home and abroad.
That has generated huge commercial revenues of £303m at the last count, while Spurs income from sponsorship and merchandise was £228m.
That gives them greater capacity to spend in terms of Profit and Sustainability Rules, as does their superior broadcast and matchday income.
And it is in that last category where United are set to accelerate further away from Spurs.
Tottenham to fall further behind Man United in key area
Spurs are currently spending pre-season in East Asia, where their star has risen hugely because of Son Heung-Min.
South Korean fans are a permanent fixture at the Tottenham Hotspur stadium as a result, which helps Spurs generate more matchday and commercial income.
The North London club earned £118m on matchdays in 2022-23, which was second only to Man United’s total of £136m in the Premier League.
However, the latest news from the North West shows that the gap will soon widen.
The redevelopment of Old Trafford has long been in the post but now, as reported by BBC Sport, United co-owner Sir Jim Ratcliffe is now believed to favour the construction of a completely new stadium.
The new stadium would boast a capacity of around 100,000, which would make it comfortably the biggest in the UK.
It would also likely see United’s matchday income reach the £200m mark, almost doubling Spurs’ total.
Because of the two club’s different models and ownership models, this will result in United’s spending power greatly accelerating away from Spurs’.
Spurs chairman and co-owner Daniel Levy and non-executive director Jonathan Turner have freely admitted that the capital behind their club is dwarfed by the likes of United.
Unlike United, they profess to not be able to afford to bankroll major financial losses.
The Old Trafford development will not only improve cash flow but also, in contrast to Spurs, create greater headroom in terms of Profit and Sustainability Rules.
TBR Analysis: Matchday income shaping Spurs’ transfer strategy amid Desire Doue links
Levy and his ENIC co-investors spent £1bn to fund the construction of the Tottenham Hotspur Stadium, most of which came in the form of loans.
The debt has been agreed at fixed rate and Spurs pay around £30m per season to cover interest and repayments.
That means that Spurs’ net income from the stadium is around £80m.
Because Spurs’ model is one of self-sufficiency, that cash is all reinvested – including into the transfer and wage budget.
That means, when the club are being linked with the likes of Desire Doue, their ability to compete with the likes of United is shaped by their matchday income.
