Tottenham close to £400m stadium sponsorship

Discussion in 'The New Stadium' started by tototoner, Feb 1, 2012.

  1. sloth

    sloth Well-Known Member

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    Mate, that's a crazy argument, sponsoring something for brand awareness is totally different from owning and running the thing you're sponsoring. It's a completely different business decision.

    One is a straight forward cash transaction in return for a marketing opportunity, the other is taking on an entire business.

    In twenty years of advertising on the side of a bus a company probably spends more on that advertising then the value of the bus, nobody would seriously suggest therefore that Marks and Spencers or whoever should just buy and run the fucking bus.
     
  2. JimmyG2

    JimmyG2 SC Supporter

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    But they could buy the bus and lease it back to the bus company and their net spend on the advertising could be nil.
    Not sure about your figures anyway.
    Need to know the cost of a bus and the cost of advertising on the side of one bus at a twenty year rate.
     
  3. brasil_spur

    brasil_spur SC Supporter

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    Big companies don't really work like this though.

    Corporate takeover is a messy and long winded thing, you have lots of costs outside of the cost of the price you pay for the business - legal, accounting, due diligence etc...

    Then depending on how your company is structured you may have to get full shareholder approval, etc...

    Then say you buy the football club and it turns out your due diligence wasn't quite up to scratch and there are legal cases pending against the business, it could end up costing you more than you paid for the club to get yourself out of it.

    Whereas a big company will have a pot of money saved for marketing spend every year, so spending that money is easy, it requires little effort than perhaps sign off from a director.
     
  4. brasil_spur

    brasil_spur SC Supporter

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    Doesn't matter who they lease it to, they are still legally responsible when that buses brakes go and it hits three kids at a crossing.

    Like sloth says, owning a company is a world of potential shit, and the difference between buying a company rather than paying that company for marketing is massive.
     
  5. JimmyG2

    JimmyG2 SC Supporter

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    Whoah there .
    This bus seems to have been driven right off the road.The original point was that the returns for naming and shirt rights seemed high in relation to the value of the company (Lilbaz I think)
    I think insurance would cover the lamentable deaths of the three kids.
    I agree that this would be an additional cost as well as road tax, cleaning, maintenance and repairs.
    Unless of course the leasing company had been made responsible for these items. It depends on the contract.

    In any case all our buses run on reclaimed fish and chip oil and are therefore exempt from road tax and congestion charges.
    Perhaps Marks and Spencers should be thinking outside the box.
     
  6. brasil_spur

    brasil_spur SC Supporter

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    Yes but lets say that M&S forgot to renew the insurance or that the current insurance become invalid when M&S bought the bus for some reason, at which point headache time again.


    Or that M&S knew that the bus was unsafe and thus the insurance refuse to pay out as this prior knowledge invalidates the insurance policy.

    My point is that just paying for the advertising is way simpler than having to worry about insurance and the massive quagmire of things that occur and have to be taken into consideration when you buy a company.
     
  7. JimmyG2

    JimmyG2 SC Supporter

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    You may have a point I suppose.
    But this isn't just a company; it's an M&S company.
    'Forgot to renew the insurance' . Clutching at straws here aren't we?

    Are you saying that Tottenham are unsafe and uninsurable?
    And Marks and Spencers buying Tottenham; is that genuine ITK or did
    you just make it up?
     
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  8. Spursidol

    Spursidol Well-Known Member

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    1 Although the market cap of TH Plc might have been low before Levy took it private, I doubt he would have accepted £400m for it.

    So the argument that they have an altenative of paying £400m for just the marketing rights or buying the company doesn't wash - it isn't available at that price.

    2 Its quite likely that the naming rights will be paid at the rate of £20m pa for 20 years - not all up front - so £400m is not available on day 1 anyway and the marketing guru doesn't have the funds to offer Levy anyway.

    3 Back to your argument - running a football business (or any business) is a whole lot more complicated than just buying marketing - Spurs have ducked out of NextGen after realising they had broken the rules which is a tragedy but not much money is lost, if a markeing guru took over Spurs and screwed up in a similar way in the Premiership it might cost them a whole lot more, even losing them much of the mythical £400m !
     
  9. brasil_spur

    brasil_spur SC Supporter

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    No, but our manager is in the dock right now, what i want to really know though is will my M&S points go towards paying for a season ticket when this happens? :wink:
     
  10. JimmyG2

    JimmyG2 SC Supporter

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    No. But your season ticket will get you a small discount in M&S.
    I think this is my bus stop.
    I'm getting off now.

    'More than Just a Stadium'
     
  11. Graysonti

    Graysonti Well-Known Member

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    So we was not close :)

    Any updates ? Edmonton from COYS?
     
  12. Bus-Conductor

    Bus-Conductor SC Supporter

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    Except there's probably more profit in running a bus than there is a football club, so the day to day business of running a football club, especially one bought at peak value will be very unlikely to cover any, let alone all of their initial outlay and come with a massive risk of actually costing them considerably more. If they just buy the advertising, they know what they will get and exactly how much they are in for.

    The arab investors (City, Paris) are taking the course you advocate, but not for the reasons you suggest. They are making huge losses, far in excess of what they would if they just sponsored naming rights etc. They are not chasing value.
     
  13. spud

    spud Well-Known Member

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    Not seen anything recently, apart from a rumour about the NFL (friend of a friend type thing). The story goes that Joe Lewis is a mad keen NFL fan and is trying to arrange a London franchise which would be based at the new stadium. This would bring stadium investment with it.

    Yeah, sounds like bollocks to me too.
     
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  14. $hoguN

    $hoguN Well-Known Member

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    Although it does sound a bit far fetched, it would make us an extremely attractive proposition for foreign naming rights investors.
     
  15. spud

    spud Well-Known Member

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    True enough.

    The other thing that I heard personally was from a Vancouver Whitecaps season ticket holder. He said that Jeff Mallett is a part-owner of Spurs. Mallett is one of four Whitecaps owners, along with Steve Nash (NBA star and die-hard Spurs fan). He was (I belive) co-founder of Yahoo and has more money than God. Given his friendship with Nash, who at one time allegedly had ownership discussions with Levy, and his investment in Nash's foundation, it is not beyond the realms of possibility that he has invested in the club. Particularly when you consider that Paul Barber went from Spurs to the Whitecaps.

    However, it's another pinch-of-salt rumour, and the fact that the club has de-listed means that we may never know if we receive investment and to what level.
     
  16. LeSoupeKitchen

    LeSoupeKitchen Well-Known Member

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    Not too keen for a NFL share - I seem to remember the london monarchs tearing up the pitch.
     
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  17. staker

    staker Active Member

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    Mallett is the principal investor in Derby County so I doubt he would have any involvement.
     
  18. HotspurFC1950

    HotspurFC1950 Well-Known Member

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    Now why don't we all push the Club towards having a standing area say at the lower or upper "kop" end.

    That would lift the capacity to a headline 60k, accommodate those who stand anyway and lift the atmosphere.

    Atmosphere has suffered since all seating because among other reasons more women and kids attend these days because all seating gives them comfort and safety.

    It is excellent that women and children go along in more numbers but they are naturally not so loud as male adult voices.

    Singing and chanting usually begins and emanates from one section of a football ground then the rest follow.

    The standing section would most likely be that section a la some German football grounds.
     
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  19. Spurslove

    Spurslove Well-Known Member

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    I can't believe nobody has had any more information on this subject for the past two years (nearly). In the past few years since the original article was written in The Telegraph, the question remains, have we secured the 20 year naming rights deal worth £400 million, and if not, why not? I certainly haven't heard anything on that score which I guess isn't too surprising.

    I feel we've all been treated like mushrooms over the past few years. Kept in the dark and fed on shit. Haringey were at last awarded the CPO on that ridiculous shed in Paxton Road a few weeks ago, and then...what. Have they served it?
     
  20. absolute bobbins

    absolute bobbins Vous Êtes Des Assassins

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    The question is irrelevant because the stadium does not even have a construction start date and the club have not put a single contract out to tender.

    I think we need to keep in mind that fans you have no right to any informations about the commercial dealings of the club. The information fans do receive from official sources and is a courtesy, the club is under no obligation whatsoever.

    Archway have six weeks from the decision date to appeal the CPO, which they probably will.
     

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