HELPFUL AND CLARIFYING ANSWERS
How do the players continue to benefit from data exploitation in this new plan?
ATP RESPONSE:
With respect to this question, we want to clarify that we are referring to data as ‘match data’. As a general rule there are no intellectual property rights afforded to match data as it merely denotes or records a fact.
In the EU, the sui generis database rights regulation provides an exclusive right that protects databases against the unauthorised extraction and re-use of their content. Such database rights are retained by the entity that collects and compiles the database and invests in the cost and technology required to build a structured database. This right can then be licensed and delivered via a feed to external companies.
Importantly, this right can be protected and enforced only by the database owner. The market has shown that the value of data comes through it being leveraged, aggregated, and marketed collectively – there is no significant value to be generated in marketing data individually (and it cannot be protected individually).
The ATP’s entire data collection process and the rules that were put in place around it were designed to ensure that ATP was able to exploit these rights to their fullest extent on behalf of both the tournament and player members for their benefit.
Under the Strategic Plan, Tennis Data Innovations has been set up as a new entity dedicated to maximising data exploitation, as well as streaming, so that ATP, players & tournaments, can maximise our opportunity in this rapidly evolving area.
The establishment of TDI in 2021 has already delivered a 38% increase in gross sales of data and streaming revenues YTD compared to 2019 – these increases will be felt directly by the ATP player and tournament members in equal measure. All singles and doubles players that are eligible for the ATP pension receive these payments equally. In parallel, the new ATP leadership has secured additional savings for members by securing a 40% reduction in commission with our existing sales agent, via a new three-year deal, as opposed to the ten-year deal that was previously on the table.
In summary, while TDI is a new entity, there are no changes being proposed that impact the distribution of data revenues to players. Revenues from Level 1, 2 and 3 data (i.e., ‘match data’) will continue to be split equally between players and tournaments.
Of course, there are other forms of data, such as biometric data, which is a separate matter. Player biometric data is entirely out of scope and not being contemplated within current plans around the exploitation of data under Tennis Data Innovations.
PTPA COMMENTS:
We thank the ATP for this clarification. Subject to getting a full definition of “match data” it appears this answer has provided certainty to the players that other aspects of their rights of publicity are not being considered for exploitation.
What are the general plans proposed through Tennis Data Innovations?
ATP RESPONSE:
The investment in TDI is made for the medium and long-term and the products developed will be applicable across the entire Tour. The goal is that all members will benefit from the value generated. The benefits of this are being seen already in year 1, with a 38% increase in gross sales of data and streaming YTD compared to 2019.
Level 1 data (live scores, collected via umpire scoring) will continue to be a major focus for TDI in parallel with level 2 and 3 (performance data, collected by data loggers or data tracking service providers). The focus across the board will be on product development and innovation, pricing strategy, data collection and delivery, technological enhancements and more.
The team of experts within TDI will focus on the different areas that have the greatest potential for growth.
We need a fully dedicated team in this space in order to make the right decisions to maximise our value.
PTPA COMMENTS:
Again, we thank the ATP for this clarification. It is helpful for the players to better understand how TDI will operate and what rights of publicity they seek to obtain from the players.
Why is a vote required so soon if the Plan doesn’t come into effect until 2023?
ATP RESPONSE:
Firstly, as referenced in the timeline, there has been 18 months of communication and opportunities for consultation on the Strategic Plan since the beginning of 2020.
In order for the Plan to come into effect in 2023, all four pillars need to be approved by the end of this year in order to give tournaments a full year ahead of 2023 to accommodate the changes required across Prize Money/50-50 Profit Sharing, Category Terms, Calendar, and Rights Aggregation. We are in a strong position on 2.5 of the pillars, yet there remains a lot of work to be done this year in order for us to be in a position to move forward on all four. There is a huge opportunity out there for our sport, yet every year that we lose is a year that we fall behind.
PTPA COMMENTS:
We appreciate that the ATP has confirmed that a vote on the Plan does not need to happen until the end of 2021. This provides enough time, if the parties are committed to engaging in dialogue, to work out a fair deal for all parties. The PTPA looks forward to these conversations.
What is the status of outside investors or equity groups getting involved in the sport?
ATP RESPONSE:
The aggregation and centralisation of commercial rights in tennis has been an integral part of the ATP Strategic Plan to maximise growth and provide enhanced services to our worldwide fanbase.
The interest from outside groups, such as the recently publicized CVC proposal, validates the strategy we put forward in 2020 to our members. CVC is one of the leading and most credible investors in sports, with investment spanning the likes of Formula 1, Moto GP, Rugby and Football, for more than 20 years. Discussions with CVC are very much at exploratory stages and there is no commitment to proceed with CVC (or any third party) involvement at this stage. The Strategic Plan has attracted interest from many other potential investors, which only goes to support our belief that the Plan will deliver exponential growth for our sport and for our members – there would be no other reason for the interest from third parties.
PTPA COMMENTS:
We appreciate the response that all discussions are in the exploratory stage, and welcome further discussion with the ATP if/when these discussions go beyond exploratory to ensure that these investments will not hinder a fair deal to the players. Players do still have a concern that outside investors will only be interested in maximizing their ROI (return on investment) and therefore may push to limit expenses, which would include the players’ share of revenue.
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