ATP Rebuffs Indian Wells’ Proposed Prize Money Increase

Written by: Bob Larson Tennis on 8th November 2012

ATP Rebuffs Indian Wells’ Proposed Prize Money Increase |

Rarely in the history of professional tennis has any ruling body turned down the opportunity of increased prize money, but a split decision by the ATP World Tour’s Board of Directors, meant an official thumbs down for the proposal by the BNP Paribas Open at Indian Wells to increase its prize money by at least $800,000.

The ATP board was locked in intensive meetings all day on Tuesday on site at the Barclays ATP World Tour Finals at London ’s 02 Arena, discussing the issue.

Tennis News understands three Player representatives on the board (Georgio di Palermo , David Egdes and Justin Gimselstob) voted in favor of the 29% increase. However the three Tournament representatives (Gavin Forbes, Charles H. Smith and Mark Webster) voted against and Chief Executive Officer and Executive Chairman Brad Drewett abstained, possibly because he was in a no-win situation where voting against the players given how much stronger a force they have become under ATP Players Council president Roger Federer would be politically unwise, and voting with the players when the Indian Wells proposal goes against ATP rules regarding prize money distribution might not be wise either.

In an official statement for the ATP World Tour, Kate Gordon (Executive Vice President of Marketing and Communications) said: “ We welcome tournaments increasing prize money, however, in this case, a tournament is proposing a distribution that is not in line with the ATP rules that players and tournaments themselves have agreed, and which every other tournament on Tour follows.

“The ATP distribution model is designed in part to protect the middle ranked players’ share of prize money, and more evenly distribute prize money throughout every round in a tournament. We would be happy to approve a prize money increase, if it complies with ATP rules on distribution.”

While Gordon said that the tour would welcome prize money increases, there has also been grumbling amongst other Masters Series tournament directors that Ellison is setting the bar too high when it comes to overall prize money.

Earlier this year the Indian Wells event, owned by Oracle CEO and billionaire Larry Ellison one of the world’s richest men, increased overall prize money by $1 million. However the problem seems to stem from the fact the tournament did not follow exactly to the ATP World Tour’s normal prize-money distribution formula, but the ATP did allow the tournament to adjust its prize money formula.

In every other case the prize money for every round won is doubled, and that any year-on-year increase must be applied at the same rate for every round won. Indian Wells followed that formula until the quarterfinals, when cashes jumped from $43,250 to 100,000, a 131 percent increase. The tournament then doubled the prize money for semifinalists to $200,000, increased the finalist’s purse to $500,000, and doubled that for the champion, who earns $1 million.

It is believed the intention of the BNP Paribas Open was to reward more generously the losers in the initial three rounds of the event, therefore echoing the demands recently made by the ATP Players Council to the four Grand Slam events and primarily the Australian Open.

Total prize money for Indian Wells in 2012 was $5.5 million, which means that the proposed 2013 increase would be a whopping 29% overall, as the WTA players would also get and $800,000 bump.

Ellison has his own ideas about how his tournament’s prize money should be allocated.

Ellison is not shy about giving substantial increases. In 2011, total prize money was $4.5 million. If the tournament eventually gets it 2013 increases approved, prize money will jump to $6.6 million, a whopping 35 increase in two years.

Tournament Chief Executive Officer Raymond Moore was quoted in the Palm Springs Desert Sun newspaper as saying: “This is a surprise to us. We don’t have an explanation. We are waiting for the ATP to get back to us… I’m staggered, but we’ll see what (Drewett) has to say.”

Because the players are pushing for more flexibility when it comes to the number of Masters Series commitments, some tournament directors are worried that if they are forced to choose between Masters Series tournaments, the players will opt for the ones with the biggest payouts and Indian Wells is far above the others.

Moore told the Desert Sun there would be a small raise for the quarterfinalists and the semifinalists, but no increase for the finalist or champion. That would go against the ATP’s formula.

In 2012, Indian Wells offered more prize money than any other North American Masters Series: $700,000 more than Miami , $1.8 million more than Cincinnati and about $2 million more than Canada . Of the three Masters Series in Europe — Madrid , Rome and Paris , Bercy — Madrid comes the closest in prize money to Indian Wells. but still offers about $1.6 million less.

Indian Wells proposal is expected to go back to the ATP board of directors in the near future.