Tennis Australia’s Revenues Are Up

Written by: Staff on 8th October 2012

Tennis Australia's Revenues Are Up

epa03084718 Novak Djokovic of Serbia celebrates after winning his men's single final match against Rafael Nadal of Spain at the Australian Open Grand Slam tennis tournament in Melbourne, Australia, 30 January 2012. EPA/MAST IRHAM |

Tennis Australia’s ability to bring in new sponsors and increase the amount that foreign broadcasters are paying for TV rights are the primary reasons that it was able to increase prize money by a record $4 million for the 2013 Australian Open.

The increase came after ATP players threatened to boycott the 2013 Australian Open if they did not get a significant hike.

New broadcast deals allowed Tennis Australia to take in an additional $15 million in revenues in the 2012 financial year. In 2011, Tennis Australia signed a 10-year extension with ESPN and a new deal with WOWOW in Japan, Tennis Australia also recently announced a new three-year deal with Mount Franklin as its official spring water supplier and re-signed associate sponsors Rolex, ANZ, Maxxis, Coca-Cola and PowerAde.

The tournament’s biggest sponsor is KIA Motors. Jacob’s Creek wine is also an associate sponsor.

According to the Australian Financial Review, Tennis Australia 2012 financial report shows revenue increasing from $157 million in 2010-11 to $172 million. Profit was up to only about $3 million from $2.6 million in the same period due to rising costs and investments. There was a $6 million increase in operational expenses, $5 million in tennis expenses and $2 million in event expenses.

However, Tennis Australia has $30 million in net assets, including $21 million cash or cash equivalents, $15 million in fixed interest investments and another $7 million in equity investments.

©Daily Tennis News Wire

Topics: ATP tennis news, Australia Open 2012, Sports, Tennis Australia, Tennis News