Spurs will pull off one of the world’s biggest ever naming rights deals as global brands battle it out for the new Lane, I can disclose today.
FedEx and Nike have been named by industry sources as major companies who have sounded out naming rights options. Spurs are declining to comment on the record and sources insist that is it far too premature to name any interested parties.
One major global brand that looked into the naming rights possibilities told me: “We looked at it, but we understand that Nike and FedEx are in the running.”
However, “it would be inaccurate” to name those two companies, insisted the club source.
But it’s good news for Spurs chairman Daniel Levy that interest in a big money naming rights deal is sure to be hotting up early in the New Year.
The club have conceded that construction costs for the new stadium on the site of the old Lane are forecast at £750m to £800m and, although not the £1 billion reported, it makes the deal for naming rights even more important than ever before.
The new 61,559 capacity stadium is expected to stay within the club’s internal forecasts, in line with previously stated cost forecasts.
But it was originally budgeted to cost £400m and in June Spurs agreed a £400 million five-year bank loan from Bank of America Merrill Lynch, Goldman Sachs and HSBC Bank.
Spurs have already spent £340million from their own resources “on the acquisition of land, the planning process, including a compulsory purchase order and legal challenges,” said a club statement at the time.
The new £400m loan replaced a £200m interim financing facility from the same banks, of which £100m has been drawn down.
While excitment grows as the new Lane takes shape and looks like being an iconic stadium, the club don’t want to suffer the problem of falling behind their rivals in terms of buying power and salaries, which are escalating beyond anyone’s previous expectations when the stadium was first planned.
Hence the need to find a financial solution and the biggest asset to sell is the naming rights, with FedEx and Nike having explored their options to become the main sponsors for the new super stadium.
The new stadium will be the second most expensive football ground to be built in the UK after Wembley, but certainly one of the most impressive in the world.