Tennis Australia Wants Financial Growth

Written by: Bob Larson Tennis on 26th November 2013

Iveta Benesova of Czech Republic hit her shoes

Tennis Australia Wants Financial Growth

epa01799151 Iveta Benesova of Czech Republic hits her shoes for cleaning during her semifinal match against Sybille Bammer of Austria at the ECM Prague Open 2009 tennis tournament in Prague 18 July 2009 EPA/FILIP SINGER |

Tennis Australia CEO Craig Tiley says he’s taking further aim at the Asian market in order to overcome this year’s dip in profits.

The new CEO also says Tennis Australia will be better placed to handle a $3 million increase in prize money for the 2014 Australian Open, which will be a record $33 million.

According to Australian Financial Review, the 2013 increase of $4 million in prize money caused the organization’s net surplus for 2013 to drop to $1.6 million from almost $3.1 million in 2012, even though there was a $9 million rise in revenue to $181 million.

The ATP and its players got together in 2012 and successfully pushed for major increases in prize money at all the majors.

“You have to adjust your business to account for it, and the advantage we have this year and the next few years is that we are prepared for it,” Tiley told the publication. “Historically we’ve been going up 2 per cent to 3 per cent annually but we think [prize money will] be going up 10 per cent year on year to get where we think we need to be.”

Tennis Australia has established a commercial office in Asia and recently re-upped with Chinese goods manufacturer Hisense to become an Australian Open sponsor again. Other Asian companies that sponsor the event are Korean car maker Kia and Taiwanese tire firm Maxxis.

“We have barely touched the surface on what we can achieve in Asia,” Tiley said. “We’re looking for commercial and revenue opportunities that exist in events acquisition, sponsorships and the leveraging of our existing partners, such as ANZ and Jacobs Creek, into the region.”

The Australian Open is looking for a boost in ticket sales, which are already ahead of last year’s pace by 6 percent.

However, Tiley also admitted that the Sydney International — which is held week before the Australian Open and struggles with ticket sales despite a very good WTA field and a so-so ATP field, needs “re-energizing.” He also said that Tennis New South Wales, which oversees the event, has financial issues to overcome, but that he is confident that organization’s new chief executive Alistair MacDonald can turn things around.

The tournament is played at the Sydney Olympic Park, which is far away from the city center. Tennis New South Wales is attempting to renegotiate the terms of its lease as refurbishment costs are too high.

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