First, let me say congratulations to Mirka and Roger Federer on the birth of their twin girls this past week. Seems that Roger is never satisfied with just one of anything, so he already has two new "trophies" to add to his collection.
The tennis world is a little light on good stories right now. The summer Olympus U.S. Open Series is in full effect, and you all know my opinions on that from other columns. The World Team Tennis championship has already been played and decided. Kim Clijsters' comeback began with WTT, but with only two matches, it wasn't an earth-shattering return. Maybe the most amazing thing about the WTT this year was that the Washington Kastles, led and coached by my compatriot Murphy Jensen, won the title. To think how far he has come since his walkabout at Wimbledon all those years ago...
Since there seems to be again the summer tennis lull, I think this is the perfect time to talk about what is going on behind the scenes of the professional tours and the professional tennis industry. Most of my colleagues have glossed over the business side of tennis for the past year. They tout participation numbers that seem to show an increase in recreational players, they talk about slightly increased sales of racquets at some of the major companies, but stay completely away from the heart of professional tennis, the sponsor money.
Tennis, more then any sport with the exception of maybe golf, is almost solely reliant on the money of large investment firms, banks, and insurers. The financial industry has held up the tours and professional game almost exclusively since the advent of open tennis. The very companies and people who have been the epicenter of the world's current financial crisis and meltdown. As a journalist who goes to more than his share of tournaments, large and small, I have seen a noticeable decrease in sponsor signage at many tournaments. And the names on those banners have shifted dramatically.
A good example is the Indianapolis Tennis Championships, formerly the RCA Tennis Championships, a tournament stop that just completed this weekend. RCA, a member of the other industry that has continually taken a beating over the past years, telecommunications, dropped the sponsorship not long after the first defection of a high ranking member of the tennis industry. Ford, Dodge, Chrysler, and the U.S. automakers also did not fly banners this year. Arlen Kantarian, USTA CEO, resigned last October, reportedly to seek new challenges and take a step back. After much worry and speculation, the pharmaceutical giant Eli Lilly stepped in to become the main sponsor. While it is not unheard of for large pharma to sponsor sports, this is a shift for sure.
Most minor tournament sponsors have changed, too. Tennis has always been thought of as a sport of the affluent. Hence the moneyed sponsors. Look at Indy, though, and the blue collar is creeping in quickly. Heineken Light and Barefoot Wines are prominent sponsors. Neither would be considered "high brow" for sure. Great companies and great products, don't get me wrong, but not the Moet or Rothschild, if you know what I mean. The shift in the economy has clearly shifted professional tennis.
The reason I mention all this is that all three of the major CEOs in professional tennis have now left the sport. All within six months of each other, and all left proclaiming how the sport has never been better both from a player and financial aspect. Arlen was the architect of the U.S. Open Series and was known for working closely with minor tournaments in increasing their revenues and sponsorships. The Indy tournament has said he was key to their success in the past. Now he is gone.
Also, Etienne De Villers was essentially forced out of the ATP. To me, not a great loss, but there has yet to be a good replacement for him. And lastly, Larry Scott resigned and joined the NCAA Pac-10 just this month. Clearly, the Sony Ericsson WTA Tour benefitted by his leadership. And clearly, Larry was a huge reason that the sport has risen more than the men's game, which is why his departure is the most puzzling.
With Larry Scott's charisma, his clout, and his ability to get things done, you would think that the challenge of keeping the revenue and game at the top would keep him on the job. Larry himself had stated a few times that he expected tournament and tour sponsorships industry wide to drop by at least 20 percent over the next year, fueled by the financial crisis. He became the king of the WTA after inheriting a much worse situation from the previous CEO, who shall remain nameless here.
So why leave now? Tennis is about to implode. I will be the first to say it. I wasn't sure, but the announcement this week by the USTA that it will once again increase prize money for the tournament, showing that the tennis industry economy is well said it all. From the USTA press release and some other reporting sources came this:
"The USTA today announced that the 2009 U.S. Open purse will top $21.6 million, marking the third consecutive year that the tournament's prize money has increased by $1 million. In addition to the base purse of $21.6 million, the top three men's and top three women's finishers in the Olympus U.S. Open Series may earn up to an additional $2.6 million in bonus prize money at the U.S. Open, providing a potential total payout of $24.2 million. Both the men's and women's U.S. Open singles champions will earn a record $1.6 million with the ability to earn an additional $1 million in bonus prize money (for a total $2.6 million potential payout) based on their performances in the Olympus U.S. Open Series. In addition, both U.S. Open singles champions will receive a new 2010 Lexus IS convertible."
No need to herald the industry economy if it is in fact doing well. This signals a plea for help. First, Arlen Kantarian has left, and the USTA chose not to replace him and divide his duties among the other senior leaders of the USTA. Clearly, a vote of no confidence to those in power at the USTA, and also apparently a cost-saving move since the increase in prize money is about equal to Arlen's compensation. It also signifies a belt tightening for the years ahead.
The WTA Tour has promoted Stacey Allaster to the head of the organization. I congratulate her, and her promotion is well deserved. But the WTA Tour is also experiencing and identity crisis. Unlike the men's side, there are no real tour stars. Venus and Serena Williams are its best players, but they are not dedicated tour regulars like Chris Evert, Steffi Graf, and Martina Navratilova were for many years. They tend to be tennis celebrities, which is totally different then being a tennis star. Paris Hilton is an entertainment celebrity who has acted in movies. Tom Hanks is a movie star. See the difference? That is exactly what the WTA Tour faces now.
There have been many articles about the women's tour, its parity, and who will be its next big star or stars. With the influx of talented by unknown Eastern European players and the almost non-existent pool of top U.S. women players below the Williams sisters, there just isn't any compelling reason to watch the women. No rivalry, no great battles. Few, if any matches that go full bore. And I live for women's tennis. So can you imagine what the tour faces now, given the added burden of a dramatic loss of revenue for the foreseeable future?
The men's side isn't a whole lot better. Roger is still the king, and at least we got to see history this year to keep us involved. Rafael Nadal and Roger will continue to battle it out (assuming Rafa can recover fully from his physical issues), much like John McEnroe and Bjorn Borg in the sport's heyday. The two Andy's are just below, along with Novak Djokovic, so for the short term, the tour can provide sufficient entertainment to keep the tennis fans amused and going to see tennis. Whoever finally takes charge of the ATP tour will have their hands full in trying to keep the sport moving forward.
The sport I love so much, the sport I care maybe too much about, is on the verge of fulfilling the Sports Illustrated title it had not too long ago, "Is Tennis Dead?" The leaders of the industry have spoken. Larry, Etienne, and Arlen have told us everything we need to know.
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