Tottenham Hotspur Football Club Case Study
In 2011 Legends International/ISG was first appointed by Tottenham Hotspur Football Club (“THFC”) to undertake an initial stadium viability assessment for their new stadium. From there, the relationship and positive results grew.
Following the initial stadium viability assessment, the Legends International team next undertook detailed research on the potential revenues from season tickets and VIP hospitality products in the proposed building and assessed the optimal capacity of the stadium. This allowed a robust assessment of the demand, pricing and revenue from all seating product in the proposed stadium. From this, a financial model was developed to demonstrate the financial impact and benefits of the project, instilling confidence in club management to proceed.
As the project accelerated, Legends conducted another season ticket pricing and volume study that uncovered important insights, including the potential for an 85% increase in season ticket revenues as capacity grows. A VIP hospitality survey was also conducted that showed the potential for increased premium product within the stadium and recommended new innovative products to drive revenues, including loge boxes – which would be a first for the UK market.
Following that, Legends also delivered a funders report – a key requirement for attaining the £400 million five-year bank loan the project needed, courtesy of Bank of America Merrill Lynch, Goldman Sachs and HSBC.
In total, Legends engaged with THFC across the following seven different roles ahead of the opening of the stadium for its first competitive senior fixture on 3 April 2019.
- Initial stadium viability assessment
- VIP Premium Seating Feasibility
- Stadium Financial Modelling
- NFL Cost/Benefit Analysis
- Financial and brand assessment of best location to play during build
- VIP and Season Ticket Pricing and Demand Study
- Funding Support Reliance Work
The research, analysis, planning and funding efforts of Legends International:
- Provided the data and analysis which drove the configuration and specification of the stadium, with a broad variety of segmented offerings to match market demand
- Demonstrated how an 85% increase in revenue from season tickets will be possible as volumes increase from 20,000 to nearly 40,000
- Led to implementation of loge boxes – a first for any stadium in the London market
- Increase premium revenue by over 200% compared to the old stadium
- Was instrumental in helping the club attain a five-year bank loan for the project
Although the Tottenham Hotspur Stadium has only been opened for a matter of months, reaction to the venue from journalists, pundits, fans and others in the sport business industry has been overwhelmingly positive.
Fans at THFC’s old White Hart Lane stadium on the same site would rarely get to matches early to soak up the atmosphere and the venue would empty as soon as the full-time whistle blew.
Through their work with Legends, THFC have created a venue that ‘sets the benchmark for modern stadia’ according to The Daily Telegraph.
One of the most important tasks performed by Legends was their funders report that was instrumental in helping the club to attain a five-year bank loan for the project.