In this case study we were given the opportunity to evaluate Tottenham Hotspur’s plans for a new stadium and a new striker. The Chairman of Tottenham, Daniel Levy has focused on three pillars that he believes could sustain long-term success for Spurs. Levy states, “If you sign older players at huge salaries but don’t get the immediate football success you dreamed of, you cripple yourself” (p.2). The pillars are: the development of a new stadium, the building of a new training facility, and the continual improvement of the club through prudent player acquisitions during the various transfer windows. Adhering to these pillars would allow for continued success in both domestic and European football, as well as the development of the company’s assets. Ultimately, this would allow for the club to build their brand, which in turn will lead to greater revenues being streamed in.
Not only is the club historic, but it also possesses 20 million fans worldwide. As a result, in 2008 White Hart Lane sold out every game and there was a 20,000-person waiting list for seating tickets. With soccer gaining more traction worldwide, more fans are likely to flock to games. The club receives revenues from four major sources: attendance, sponsorship, merchandise sales, and broadcast rights. Its main costs are players’ salaries and the costs of operating the stadium. White Hart Lane cannot be renovated to include 60,000 seats. Thus, if Tottenham wants to expand their potential for revenues they