Case Description of Tottenham Hotspur plc - Essay Example

The Tottenham Hotspur club plays in an old white hart lane stadium which has a capacity of 36,500 fans. This stadium capacity is small compared to the stadium capacity of other top-flying English Premiership league clubs such as Chelsea, Manchester United, and Arsenal, who are the main competitors of Tottenham Hotspur. For this reason, the club plans to build a new stadium that can have a capacity of more than 36,500 to remain competitive as the other premier league clubs. Daniel Levy, the current and longtime chairman of Tottenham Hotspur football club, was therefore contemplating the building of the new stadium. He believed that by building a new Stadium, Tottenham Hotspur will be able to accrue additional revenue that will make them a voice in the transfer market for good players.

The Tottenham Hotspur football club has a stadium whose capacity is small compared to the stadium capacity of other top competitors such as Arsenal, Chelsea, and Manchester United. This makes them disadvantaged as they are not able to accrue enough revenue from stadium attendance as compared to their competitors. This is evidenced because despite having 20 million fans worldwide and 2.1 million fans in the United Kingdom, few attendance revenues are always raised as the stadium cannot accommodate all the fans who are willing to watch a Tottenham Hotspur match.

For instance, when all the 36500 seats are occupied during the match day, 20,000 people are always on the waiting list for the tickets. Because of the limited stadium capacity, the club accrues less revenue as compared to the other top competitors. The fewer revenues accrued make the club less competitive in the transfer market as compared to other clubs like Arsenal and Manchester United. For this reason, the club will not be able to purchase good players who can make the club be top four in the league.

The lack of top-four positions in the league makes the club lose television broadcast revenue and champions league revenues.