ATP Unlikely To Recover $3 Million Loss From Rio

Written by: Bob Larson Tennis on 24th February 2014

ATP Unlikely To Recover $3 Million Loss From Rio

epa04092256 General view of the match between Austrian tennis player Patricia Mayr-Achleitner and Brazilian Teliana Pereira during their Open of Rio de Janiero game in Rio de Janeiro, Brazil, 20 February 2014. EPA/Antonio Lacerda |

The ATP has done well with sponsorships over the past five years or so, but new ATP CEO Chris Kermode said the tour is unlikely to recover around $3 million that is owed from the government of Rio de Janeiro for advertising the city at the Brazilian city at men’s tennis tournaments.

“It left a very bad taste to be honest,” Kermode said the inaugural Rio Open, which is run by IMX, a joint venture between IMG and Brazil’s EBX Group “We had a mutual agreement to terminate the contract and the terms were very clear. Unfortunately, we haven’t been paid and it doesn’t look like we’re going to get paid.” The ATP and the state government agreed to end the accord but the tour still feels it should be paid.

The agreement began in 2011, but Rio broke it midway through the 2013 season. The city’s logo had been placed on the side of the net during the ATP World Finals, as well as in videos and on the ATP website. The contract’s overall value was for around $9 million US

Politicians in Brazil are under pressure to avoid funding sporting events, but the ATP deal had already been signed and advertising had been delivered. Rio is hosting 2016 Olympics, and Brazil is said to be spending $11 billion to stage this summer’s World Cup.

Kermode has tried to speak with Rio Governor Sergio Cabral but hasn’t heard a word in a few months. The chance of the city securing the ATP World Finals at some future date appears slim.( editors note : the tourney should never leave the 02 Arena in London , it’s an ideal location, a fabulous event )

Brazilian Andre Silva, who worked with Kermode for years and was said to have had a hand in the Rio deal, was vocally upset with the non-payment when he recently left to work for Tony Godsick and Roger Federer’s new group. “It’s an annoying situation for me as a Brazilian,” Silva said last fall.

Rio has almost no chance of hosting the ATP World Tour Finals or anything in the near future. “We don’t really want to mix the two, but it’s not a great start,” Kermode said. “We want to work with people we can trust.”

IMX bought the tournament from Memphis from its owners, the NHL San Jose Sharks, last year.

“They have brought a clear vision to Rio from Memphis,” Kermode said. “We bought into their vision and it is a very collaborative process. All the events we do around the world we have this kind of relationship.”

Topics: 10sballs, Andre Silva, Atp, brazil, IMG, Rio De Janeiro, Roger Federer, Sports, Tennis, Tennis News

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10sBalls_com says:

February 24, 2014 at 7:07 am

ATP Unlikely To Recover $3 Million Loss From Rio – http://t.co/oRjZs7CT4u @ATPWorldTour #Rio #tennis #news #ATP