Global Financial Crisis- Impact on Tennis? [Archive] - MensTennisForums.com

Global Financial Crisis- Impact on Tennis?

cobalt60
01-01-2009, 01:22 PM
Apologies if this topic was done before( which I think it was) but I searched and could not find anything on GM when the global financial downturn was all the rage in the papers. Google and you can find numerous articles talking about the impact on tennis on multiple levels.

Here are a few articles concerning. And since Mercedes is no longer the sponsor and one has yet to be found I am curious what MTF'ers think may happen in 2009. Both from an ATP standpoint and also in Tennis Associations.

http://sports.espn.go.com/espn/otl/columns/story?columnist=ford_bonnie_d&id=3622755

http://www.usatoday.com/sports/tennis/2008-11-17-economy_N.htm

The last quote is a thread I happened upon during my search in regards to the Wimbledon final increasing TV coverage in the states. I still feel the answer is no but it is a stronger no at this point. Certain sports and entertainment ( well some call it that;) ) are hurting such as Nascar, WWF, and golf in the USA.

http://www.menstennisforums.com/showthread.php?t=127359&highlight=wimbledon+final

Thoughts for the new year of tennis?

Herdwick
01-01-2009, 01:32 PM
I was wondering about this too. It does not bode well that the Mercedes main contract has been up for renewal for ages. And am far from clear as to the actual financial impact of sponsorship - for example what exactly will not be funded if the main sponsor is not replaced?

Tennis may well suffer more than many sports as it is perceived by many as a minority, 'upmarket' sport without a massive and devoted fan base.

Action Jackson
01-01-2009, 01:34 PM
Well all pro sports are going to suffer a certain amount during tough economic times, it's not like they exist in a bubble, the main thing is that some will be worse than others.

Tennis is an international sport and like I have said before what happens in the US does not mean it's the same globally when it comes to this. Tennis attendances if the numbers are to believed have increased, yet the ATP loses money.

Mercedes being a long time sponsor and leaving the game, well this could be due a few factors, global economics, the fact they didn't like the direction that Disney was trying to take the game and also they thought their money could be used better elsewhere.

As for the local federations, the vast majority of them are incompetent fucks with no long term strategies and are only interested in the short term benefits, France and Spain (in spite of that clown Muñoz) are notable exceptions.

scoobs
01-01-2009, 01:36 PM
Last reports I read said that 6 tournaments have not yet secured sponsorship for this year's editions, though it did not name names. I think the Japan Open is one, though.

And as we know the ATP has still yet to secure, or at least announce, a replacement "global partner" for Mercedes-Benz.

Sponsorship money dumps at least some into the prize fund kitties for some tournaments so we may yet see some events not take place this year unless monies are secured.

cobalt60
01-01-2009, 01:48 PM
Here is one article discussing briefly what Scoobs is referring to:

http://www.bloomberg.com/apps/news?pid=20601079&refer=home&sid=aBxd5vrOinuk

Herdwick
01-01-2009, 02:01 PM
Cheers. Do wonder where the record $80 million prize money is coming then, if it's not being affected by the loss of Mercedes.

nobama
01-01-2009, 02:08 PM
According to the ATP prize money for 2009 will be increasing 36%. The US PGA tour's total prize money for 2009 is only increasing $100K.

This article is not related to the financial crisis, but still interesting. Is there any good information on just what the revenue sharing is between tournaments and players?

http://www.sportsbusinessjournal.com/article/59823

cobalt60
01-01-2009, 02:11 PM
I had to quote this MY from the above articel. Interesting results. Although it only applies to the USA.


Facing the same challenges?
Panelists in the Turnkey Sports Poll were asked the same questions in recent years regarding the health of professional tennis. Here is what they had to say:
In your opinion, what is the single biggest obstacle to professional tennis becoming more popular in the United States?
2008 2006
Too few American stars 47.94% 48.91%
Sport’s structure and schedule is too fragmented 29.90% 26.20%
Too little media coverage 7.22% 2.18%
Inadequate player marketing 3.61% 5.68%
Inadequate event marketing 3.61% 2.62%
Other 6.19% 12.23%
No response/not sure 1.55% 2.18%
To what extent do you agree or disagree with the following statement? Fewer people follow professional tennis today than did 25 years ago.
2008 2007
Strongly agree 41.24% 45.45%
Somewhat agree 38.66% 37.12%
Somewhat disagree 13.92% 12.88%
Strongly disagree 3.09% 2.65%
No response/not sure 3.09% 1.89%
Note: The Turnkey Sports Poll covers more than 800 senior-level sports industry executives spanning professional and college sports.
Source: Turnkey Sports & Entertainment in conjunction with SportsBusiness Journal. Turnkey Intelligence specializes in research, measurement and lead generation for brands and properties. Visit www.turnkeyse.com.

Action Jackson
01-01-2009, 02:12 PM
The tournaments and the TD always had a huge cut, this is what Kafelnikov was saying years ago when he said 'they didn't get paid enough". It wasn't that they weren't get paid enough per se, it was in relation to golfers and in addition to the amount that players get paid compared to what the tournament rakes in.

nobama
01-01-2009, 02:17 PM
Cheers. Do wonder where the record $80 million prize money is coming then, if it's not being affected by the loss of Mercedes.Yeah I wonder that too. The new '500' events increased their prize money 118% I think they were all required to cough up at least $1M in prize money. For instance, prize money for Washington DC is now $1.4M with the winner receiving $300K, last year it was $508K with the winner receiving $81K. Interested to know how all this increased prize money was secured considering the global economy right now...

nobama
01-01-2009, 02:23 PM
The tournaments and the TD always had a huge cut, this is what Kafelnikov was saying years ago when he said 'they didn't get paid enough". It wasn't that they weren't get paid enough per se, it was in relation to golfers and in addition to the amount that players get paid compared to what the tournament rakes in.Do the Slams (or any other tournament) have to report on what they do with the revenue received? So the US Open rakes in $200M and pays out 10% in prize money what are they all doing (besides the obvious) with the other $180M?

CooCooCachoo
01-01-2009, 03:48 PM
The course we seem to be heading at is a cut in the prize money for the players, or at least in the ratio of what tournaments get versus what players earn. The tendency has been for the top players to get very wealthy at the expense of tournaments, which still tend to lose money.

I don't know whether this would be a bad change. Prize money for the top players is pretty exorbitant.

nobama
01-01-2009, 04:34 PM
The course we seem to be heading at is a cut in the prize money for the players, or at least in the ratio of what tournaments get versus what players earn. The tendency has been for the top players to get very wealthy at the expense of tournaments, which still tend to lose money.

I don't know whether this would be a bad change. Prize money for the top players is pretty exorbitant.But according to that article I posted players in other sports get a bigger cut of earnings than tennis players do. Top players may be earning a lot compared to their lower ranked players, but in comparison to other sports it's not that exorbitant. A nobody golfer who wins a nothing event with few top players can earn close to $1M. There's no ATP event where the winner gets $1M check.

CooCooCachoo
01-01-2009, 05:28 PM
But according to that article I posted players in other sports get a bigger cut of earnings than tennis players do. Top players may be earning a lot compared to their lower ranked players, but in comparison to other sports it's not that exorbitant. A nobody golfer who wins a nothing event with few top players can earn close to $1M. There's no ATP event where the winner gets $1M check.

That is because these sports are more popular :shrug: And to say that other athletes may earn more is not to say top players do not earn an exorbitantly high income; it just means that there are even more astronomical figures being handed out in other sports.

cobalt60
01-01-2009, 05:39 PM
Plus you can't forget about the extreme amounts of endorsement $$$$$ that the top players get or the invitations to play in well paying exhibitions;) Abu Dhabi for one.

nobama
01-01-2009, 05:55 PM
That is because these sports are more popular :shrug: And to say that other athletes may earn more is not to say top players do not earn an exorbitantly high income; it just means that there are even more astronomical figures being handed out in other sports.Sure athletes make a ton of $$$ but obviously someone is willing to pay for it. In comparison to other sports I don't think what tennis players make is that exorbitant. :shrug:

cmurray
01-01-2009, 07:33 PM
As far as I am aware, Indian Wells has not yet found a sponsor to replace Pacific Life. This is not good news for other tournaments hoping to attract new sponsorship.

Via
01-01-2009, 09:51 PM
there are subtle changes at the brisbane and sydney tournaments these year. they are selling corportate box tickets to the public.

there may be more to be observed on the financial chill, once the tournaments start.

KarlyM
01-02-2009, 05:38 AM
L.A. still doesn't have a sponsor - it lost Countrywide due to the subprime mortgage mess. Countrywide was taken over by Bank of America last summer and BOA won't be a sponsor in '09.

Tokyo also doesn't have a sponsor - it lost AIG (who is no longer the main sponsor of the U.S. Davis Cup team as well).

cobalt60
01-03-2009, 02:14 PM
So we have LA, IW and Tokyo as 3 of the 6. Wow. Will be interesting to see who shows up and I do indeed wonder what appearance fee won't be able to be paid.

NicoFan
01-03-2009, 04:08 PM
Not sure if we'll see the entire picture this year. A lot of the sponsorships are locked in with contracts. But this economy is going to suck for 2-4 years. What will happen when the contracts expire?

I'm particularly watching what happens with JPMorgan and the US Open given the outlook for financial markets. Don't know when their contract expires, but if the economy still sucks, will be interesting to see if JPMorgan renews.

reggie1
01-03-2009, 07:52 PM
Not sure if we'll see the entire picture this year. A lot of the sponsorships are locked in with contracts. But this economy is going to suck for 2-4 years. What will happen when the contracts expire?

I'm particularly watching what happens with JPMorgan and the US Open given the outlook for financial markets. Don't know when their contract expires, but if the economy still sucks, will be interesting to see if JPMorgan renews.

You certainly have a point, you get the feeling with the ATP they will just go along their own sweet merry way until it all goes tits up and then start to panic!

NicoFan
01-04-2009, 01:12 PM
You certainly have a point, you get the feeling with the ATP they will just go along their own sweet merry way until it all goes tits up and then start to panic!

After reading a couple of articles with tennis bigwigs, sadly, I think that you are right. They seem to think that tennis will come through fairly untouched. :shrug: Well, they could be right, but I just don't see how. Time will tell.

~EMiLiTA~
01-06-2009, 12:34 PM
The course we seem to be heading at is a cut in the prize money for the players, or at least in the ratio of what tournaments get versus what players earn. The tendency has been for the top players to get very wealthy at the expense of tournaments, which still tend to lose money.

I don't know whether this would be a bad change. Prize money for the top players is pretty exorbitant.

So true. Regardless of whether tennis players are paid less than other athletes, they are still grossly overpaid. I think it's time for a cut in prize money. I mean, they *should* be there for the tennis anyway, not just for the $.

alfonsojose
01-06-2009, 10:23 PM
:scared: :tears: No more nice trophies .. Crystal, china maker Waterford Wedgwood collapses
http://www.google.com/hostednews/ap/article/ALeqM5iEwrcRUtMuIQzaWWlIOyZsPqzpOQD95H0ST00

cobalt60
01-07-2009, 01:24 AM
^^ I could care less about the trophies but the history behind these companies is important.

hope11
01-07-2009, 07:33 AM
From a consumer perspective, it was a lot easier to get better seats at the Australian Open this year. It makes sense, because people are cutting back on spending. So I wonder how much the attendance will be affected over the year at tournaments.

*bunny*
05-14-2009, 05:02 PM
Japan Open, which lost AIG as the main sponsor, has finally found its replacement, major Internet shopping mall operator Rakuten.:cool:
Phew! Took so long! :o

http://news.tennis365.net/news/today/200905/17502.html (in Japanese)

Henry Chinaski
05-14-2009, 05:15 PM
dublin challenger is gone due to lack of sponsorship afaik