I play out of a large public club. (City park, facility with 22 courts including a true stadium court) that is run by a private company.
Leagues make the club money.
A league player pays $150 per person per league. That fee excludes the $42 to USTA, but includes the balls for the season for home matches and court time.
Average roster is around 15 players per team. Season runs 10 matches, 5 of them are at home.
So per team the club takes in $2250.
Pays for 5 courts for 5 league matches ... total of 25 courts over 10 weeks. At $7 per court per hour ... 90 minute matches That is roughly $250
Pays for 2 courts per week for the team to practice ... $14 per week for 10 weeks ... costs the club another $150
$3 can of balls for those same 25 matches = $75
So "costs" are roughly $325 per team, but taking in $2250 per team So $1775 profit per team
My club hosts for 18+ season I believe 25 teams. So $48,000 in profit per season. With 40+, 18+, Mixed, Non-advancing Fall, Ladies' weekday, 50+, 55+, 65+ all those leagues add up to just shy of $150-200K in profit per year.
Many of those teams add a club pro for a team clinic ... more money in the till. Same players will use the club's stringers, and purchase from the club snack bar.
Same club hosts districts for every season. They provide balls and courts, USTA local provides the organizers and roaming officials. I can assure you the club does not lose money on it either.
So the point of this all: The dues paying players are not paying enough to have a club turn away league players who pay much much more.