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View Full Version : The ATP has had no profits in the last 2 years


Moose Malloy
05-07-2008, 02:56 PM
So much for all those that think pro tennis is booming these days. And looking at the years('04 to '06) that it did make money, the numbers seem rather low(a pro sport that is supposedly so popular all over the world that only generates 3-5 mill a year in revenue? I think the NBA makes that much in a week.)

It makes all these experiments(round robin, hawkeye, etc) seem a bit more understandable.


The ATP World Tour is losing millions of dollars because of steep legal expenses tied to a lawsuit brought by one of its tournaments against the men’s circuit, tennis sources said.

Last year, the sources said, the ATP lost $5 million, and it is projected to lose $6.4 million this year.

In 2005 and 2006, the ATP earned $9.2 million combined, so the losses mark a significant shift in fortunes for the men’s tour. They also come as the ATP has been criticized by top players, the U.S. Tennis Association and representatives of top events on the tour. The ATP is in the midst of a tumultuous remake of its calendar, as well as its image, and the fallout has left bruised feelings and depleted coffers.
At the same time, the head of ATP Media, Mark Webster, is resigning this summer. He will be replaced internally by Steve Plasto, currently head of content and production.

An ATP spokesman described the 2007 and 2008 figures as “speculative,” even though the 2007 figure should be publicly available shortly when the group’s tax return is filed. The figures were presented to ATP members at a meeting in California in March, the sources said.

Without legal expenses, the 2007 loss would have been $1 million and the 2008 projected loss $2.5 million, one of the sources said. That translates to almost $8 million in legal expenses. In 2005 and 2006, combined legal fees were $1.7 million, according to the ATP’s tax returns for those years.

The ATP event in Hamburg, Germany, is suing the ATP for trying to downgrade the event in the tour’s tier structure next year as part of the calendar remake. Initially, the Monte Carlo stop also sued the ATP over the same issue, but that lawsuit was settled. The Hamburg case is scheduled to go to trial in July in Delaware. Were the ATP to lose, it likely would throw the schedule plans into turmoil.

The top events, called the Masters Series, have also been communicating with the ATP about concerns over the schedule and efforts to brand the nets with the ATP logo.

Peter Lawler, a former attorney for Octagon who is representing the Masters Series, said the tournaments are awaiting research from the ATP to see if its idea to place the logo on nets would detract from branding for title sponsors at these events. The USTA has come out against the plan.

Meanwhile, most of the top 20 players recently sent a petition to the ATP demanding that they be part of the process of reviewing whether Executive Chairman Etienne de Villiers has his contract renewed. His contract expires at the end of the year.

The ATP’s finances could improve in 2009. As part of the remaking of the schedule, a number of tournaments upgraded to the second level of events, which next year will be known as ATP 500s. Those increased sanction fees might not be reflected in the 2008 results.




http://www.sportsbusinessjournal.com/article/58877

norcal
05-07-2008, 03:02 PM
I'm not surprised. My own scientific study came to the conclusion that tennis is not as popular as a lot of other things.

http://tt.tennis-warehouse.com/showthread.php?t=196158

PROTENNIS63
05-07-2008, 03:13 PM
Interesting... I think they need to cut down there costs when they can and start making smarter decisions.

pound cat
05-07-2008, 03:26 PM
Interesting... I think they need to cut down there costs when they can and start making smarter decisions.


Most of their expenses seemed to be in settling law suits. They should hire a better lawyer and save themselves a lot of money.

raiden031
05-07-2008, 03:34 PM
So much for all those that think pro tennis is booming these days. And looking at the years('04 to '06) that it did make money, the numbers seem rather low(a pro sport that is supposedly so popular all over the world that only generates 3-5 mill a year in revenue? I think the NBA makes that much in a week.)

You mean profit. Revenue would be all the money collected prior to factoring the expenses paid out.

Alexio92
05-07-2008, 03:38 PM
I thinks atp should retire.

soyizgood
05-07-2008, 03:39 PM
I wonder how the WTA has fared....

I think the ITF is smiling at this piece of news.

sureshs
05-07-2008, 03:40 PM
This Etienne guy gets paid something like 600K $ a year with all first class travel expenses paid I assume. Time to get a cheaper guy.

sureshs
05-07-2008, 03:41 PM
I wonder how the WTA has fared....


They have huge amount of cash from Dubai etc.

skip1969
05-07-2008, 04:14 PM
the day i feel sorry for the shmucks at the atp . . .

interesting article, though. my guess is that when you're getting sued left and right, generally ruffling people's feathers, your chairman is a moron AND you're losing money . . . well, it might be time to consider some changes.

Fee
05-07-2008, 05:56 PM
Hopefully this will lead to the dismissal of Etienne DeVilliers at the end of this year.

tennis_hand
05-07-2008, 06:33 PM
so? ATP is not supposed to be an organization for profit.

gj011
05-07-2008, 07:04 PM
so? ATP is not supposed to be an organization for profit.

Exactly. Also Barcelona and Rome should sue them now for stupid and unreasonable clay season schedule and run that fool De Villers out of town.

jmsx521
05-07-2008, 07:20 PM
The first thing that comes on my mind is they should cut-down the high-ranked players' salaries. Those people earn way too much. Maybe pro tennis can set an example to other sports such as basketball, golf, baseball. Those ridiculous salaries don't belong to athletes: They haven't cured people from illnesses, they haven't fixed global issues. These huge salaries can feed a whole nation with that.

RestockingTues
05-07-2008, 07:27 PM
Isn't the ATP essentially a labor union for professional tennis players? How/why are they making money in the first place?

RedWeb
05-07-2008, 07:52 PM
The first thing that comes on my mind is they should cut-down the high-ranked players' salaries...

Dude, players don't receive salaries. They win prize money for winning matches. Some do get appearance fees from some tournaments.

El Diablo
05-07-2008, 08:31 PM
RestockingTues makes the cogent point here. The ATP is merely a trade organization that exists to serve the male players; it is not a revenue-generating entity by and large and is not reflective of the economic condition of the sport.
Sports like tennis and golf differ from other major sports in that they do not exist in any organized sense to generate revenue for "owners," as most tournaments are individually owned and many are corporate-sponsored for the sake of publicity, as a kind of advertising expense (Sony-Ericsson Open, Family Circle Cup, BMW Open, etc.)

HoVa
05-07-2008, 08:32 PM
tennis is a hard sport to make money in. why?


because people only want to see the top players. and the top players can only be at one time and one place.

think about basketball or soccer. Many players and many teams.

Lots of chances for fans to go see and pay money. Lots of chances for different sponsers to pay money too.

obnoxious2
05-07-2008, 09:00 PM
Maybe if they'll stop haggling with tv networks and actually give the public a chance to watch some tennis tournaments that aren't grand slams. And this isn't for the people who can afforrd international satellite.

jmsx521
05-07-2008, 09:01 PM
Dude, players don't receive salaries. They win prize money for winning matches. Some do get appearance fees from some tournaments.Oh yes... that's right... what was I thinking!?

Tchocky
05-07-2008, 09:05 PM
I think many of the smaller tournaments have trouble turning a profit but the Grand Slam events always seem to be growing and they are always raising the prize money. I wonder how the WTA is doing in comparison.

Stchamps
05-07-2008, 09:43 PM
Oh yes... that's right... what was I thinking!?

Plus only the top 20ish players make 'a lot' of money from prize money, and even that isn't nearly as much as top 100 players in other sports.

soyizgood
05-08-2008, 12:03 AM
I think many of the smaller tournaments have trouble turning a profit but the Grand Slam events always seem to be growing and they are always raising the prize money. I wonder how the WTA is doing in comparison.

The ATP does NOT own the Slams. The ITF owns them and Davis Cup. The ATP is trying to hype up the Masters either to make more money off them or to take a swipe at the ITF (and the Slams) in the process.

AndrewD
05-08-2008, 01:04 AM
The ATP does NOT own the Slams. The ITF owns them and Davis Cup.

The ITF does not own the 4 majors. Those events fall under the ITF banner but they are the property of the tennis federations (American, French and Australian) and club (All England Club) which stage the events.

vince916
05-08-2008, 01:54 AM
I didn't think anyone would consider pro tennis booming after ESPN dropped INdian Wells and Miami.