£190m deal approved by Premier League owner, big reveal set for Tottenham vs Arsenal

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The North London derby is set to be the focal point of an opportunity that could yield massive financial returns for both Tottenham and Arsenal.

In recent years, Tottenham have had the edge over Arsenal financially, if not on the pitch.

Both clubs earned record revenue in 2022-23, the last financial year on record, but Arsenal’s £467m turnover was well behind Spurs’ £550m.

The gap will have narrowed when the two clubs release their accounts for 2023-24, reflecting Arsenal’s lucrative return to the Champions League.

But the deficit will not be eliminated entirely, in large part because of the now consistent financial advantage that the Tottenham Hotspur Stadium provides.

While both Arsenal and Spurs’ stadiums have similar capacities, the blueprints for Arsenal’s stadium are now nearly 30 years old, even if the stadium itself is less than 20 years old.

Advances in technology and commercial innovation in the intervening period have meant Spurs generated £118m in matchday income last term, while commercial cash has tripled to £228m since 2019.

Arsenal are considering expanding the Emirates, which would also encompassing upgrading the matchday experience more generally, opening up new revenue generation opportunities.

But the renovation would likely take years and cost hundreds of millions of pounds to complete, giving Spurs a distinct advantage in the meantime.

• READ MORE: Aaron Lennon predicts who’s going to win the North London derby between Arsenal and Tottenham

High-tech, ultra-lucrative development headed to North London?

Earlier this season, video footage of Man United’s opening-day clash against Fulham being screened at the immersive Cosm centre went viral on social media.

The Cosm Dome, which is a bit like The Sphere in Las Vegas on a smaller scale, attempts to give fans a window into the stadium as though they were there, without a VR headset.

Now, the North London derby will be screened by Cosm, marking the first time that either a Tottenham or an Arsenal match has been the subject of what the company call ‘shared reality’.

Significantly, one of Cosm’s two venues in California at the SoFi Stadium, home to Arsenal owner Stan Kroenke’s LA Rams NFL franchise.

What’s more, the SoFi Stadium was designed by world-renowned architecture firm Populous, who also designed the Tottenham Hotspur Stadium.

And with Crystal Palace owner David Blitzer part of a new group of investors pumping £190m into Cosm to build new venues, both Arsenal and Tottenham’s stadiums would be logical next steps.

Arsenal, Tottenham and the future of technology in football

While a single new screening venue at either the Tottenham Hotspur Stadium or the Emirates might seem trivial, it would be emblematic of a wider trend withing football.

Club owners are currently valuing their clubs extraordinarily high. As part of a search for minority investment, for example, Daniel Levy has valued Spurs at £3.75bn.

Given that most Premier League clubs continue to lose money almost every season, investors clearly believe there is untapped value – and many believe that will be found in overseas fanbases.

Both Arsenal and Spurs have huge international followings, especially in the United States, where both clubs are placing particular emphasis.

But beyond subscribing to NBC, the Premier League’s broadcaster in America, it is difficult to directly monetise these fanbases.

If that is to change, technology and remote, immersive experiences could well be the catalyst.