Tottenham Hotspur Case Summary

Topics: Tottenham Hotspur F.C., Premier League, Robbie Keane Pages: 2 (602 words) Published: April 10, 2013
Tottenham Hotspur Case Summary
Tottenham Hotspur (Spurs) is a English Premier League (EPL, Premiership) soccer club based in London, UK. Founded in 1882, it is one of the oldest teams in the premiership. Since 1981, the team’s main shareholder has been ENIC International Ltd, an investment company owned by Joseph Lewis. In fact, Tottenham Hotspurs chairman, Daniel Levy, is a partner at ENIC Ltd. By June 2007, ENIC had acquired 82% of the club’s shares, with no other shareholder owning more than 3%.

Levy has vast experience in the soccer business, having formerly held a director position at the Scottish club Rangers. However, Tottenham Hotspur happens to be Levy’s life long club favorite. In order to ensure Tottenham’s success, Levy created a three pillar foundation for club consistency and longevity: 1) the development of a new stadium, 2) the building of a new practice facility, and 3) the continual improvement of the club, particularly the team, through smart and prudent player acquisitions. A plan for a new training facility was already in place, which was also crucial to the third pillar, to improve the quality of the squad. The major goal that remained for Levy was the implementation and building of a new stadium.

In general, soccer clubs in the EPL such as Tottenham Hotspurs receive revenues through four major channels: ticket sales, sponsorships, merchandise sales, and broadcasting rights. The biggest two operating costs for EPL soccer teams are player’s wages and stadium operating costs. Like many American based sports, soccer teams are ranked in order of success, which is determined by their number of wins, losses, and draws. The more successful a team is inherently brings in a larger amount of revenue. And with success comes the opportunity to enter additional tournaments such as the Europe League, Champions League, and the F.A. Cup, which provides additional revenue through television rights. Tottenham’s main sponsor is Mansion.com, which agreed...
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