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Old 11-15-2012, 03:33 PM   #23
Tshooter
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Join Date: Sep 2007
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Quote:
Originally Posted by PeteD View Post
Fascinating and helpful information! It is amazing what you can get online these days, and of course from knowledgeable people.
Question remains, though, are the players getting shafted?
Figures are murky. USTA reported in 2011 Total Revenue of $205M. I really doubt NTC revenue is in there -- why would they report it twice? NTC revenue should be added (as is prize money), giving revenues more like $230 milion, closer to what Wall St. Journal reported in their article. USTA financial statement for 2008-9 is online at:
http://assets.usta.com/assets/1/15/U...IGNED_COPY.pdf
It lists US Open alone as generating over $200 M. The same statement says USTA owns most of Cincinnatti and some of Indian Wells, which may also be separately reported. So without more information, I don't see that we have a fair idea of USTA revenues.
On the player payout side, USTA reports "event prize money/other." I would take the published prizes list, as the articles originally cited did ($7.5 M), rather than USTA's unclear "prizes/other" figure, which is (surprise!?) much higher.
Maybe I am favoring the players, as clear underdogs in any contest against the owners, but so far my best guess is, player take = about 5%, or even lower.
$205 M total revenue in 2011 ? What 205 M are you referring to ?

Yr 2010 Form 990 "total rev" = $205 but it includes non-USO revenue (most notably USTA membership fees). Which is why I went with 177.

2009 GAAP income statement shows $205 "US Open" revenue and "total op revenue" of $267 (includes non-USO revenue).

We're not the only ones struggling to nail down the precise number. Check the city of NY audit completed in 2005. The landlord (NYC) and the tenant (USTA) were about $20 M apart on the revenue number even after the first round of back and forths (though to be fair they were interested in the calculation of revenue as it was defined in their lease not for purposes of either a Form 990 or GAAP financial statements. So you might expect some differing opinions on what the lease intended to include.)

But we should at least be able to nail down the USTAs position on revenue. A reconciliation between the item "Program Service Revenue" on the Form 990 and the income statement item "US Open" would be helpful.

If you do add in the NTC number you get about $224 M for 2010.

The players take would be about 11%. So at least we should agree it is between 11% and 14%. And should be able to nail it down with a little more investigation.

Your post got a little garbled at the end, I think. You went from USO numbers to including another event (the O2 event) when you referred to
7.5 M prize money. Hence, your 5% is way off.

The $25 million prize money appears accurate. It's right from the Form 990. The USO daily draw sheets actually breaks it down in detail. The total at approx $25 million is actually under reported because it doesn't include the USO Series bonus payouts which typically get paid to some extent. For example, this year Djoker won the US Series and made it to the USO finals so he got extra cash. The rich get richer....
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