The economic side of professional tennis, unlike the economics of other sports like baseball and football, often goes unnoticed and is rarely discussed. The economy has been headline in most papers, websites, and television news broadcasts for just about half a year now. If I hear someone say "crisis," "meltdown," "recession," or "depression" one more time, I might just start to believe it.
It's funny, though, how with all this talk, most of the people I know all still have the same jobs, with about the same pay, with the same issues and challenges, and some of them actually have new cars (my friend Jim says thank you Chrysler for the "buy one, get one for a buck" deal). The Yankees, Mets, Giants, and Jets are still building new stadiums, focused on luxury boxes. The ticket prices have still been raised, and yes, seat licenses are still up for sale at ridiculous prices. And people are buying them. I see signs that there are problems, but not with those of us who are responsible with our money. So I wonder, how is the average pro tennis player doing?
Something that flew under the radar this year was that Venus Williams lost her apparel deal with Steve and Barry's, the retailer of EleVen sportswear. Steve and Barry's folded, mostly due to the inability of EleVen and other celebrity brands to sell. Her sister, Serena, was in deep negotiations with Nike about her clothing endorsement deal and at several junctures there was discussion that the cost may not justify the benefit.
Jelena Jankovic, at the time the number one woman's player in the world, was dropped by Reebok. Thankfully, she wound up signing with a new player in the apparel game, Anta, out of China. Several players have switched endorsement deals from companies like Adidas and Nike to Fila and LaCoste, rumored to be more because the major brands are trimming their budgets than them being offered a better deal. It's an interesting view. The money isn't quite as big, as well. Jankovic's deal was for only $5.1M over three years. I know, doesn't sound like poverty, but just think, the number one player in the world was not renewed by a major player in the tennis industry. Clearly, money is getting tighter.
Just a few weeks ago, there was some discussion about the ATP and WTA stop at Indian Wells, California. Ticket prices were up only a little over the 2008 cost, mostly due to the new sponsorship by BNP Paribas. The tournament management did acknowledge that attendance was expected to be down slightly. A sign that people are watching their discretionary pennies more. The Billie Jean King Cup at Madison Square Garden, a one-off special event that pitted the Williams sisters versus the Serbians Ivanovic and Jankovic, made money, but fell far short of packing MSG.
For decades, exhibitions like this, pitting top players against each other in a one night, winner-take-all format, would pack the Garden and really give the promoters a huge financial boost. Sponsorships are dwindling at tournaments, especially because most of the big corporate tennis sponsors are the same companies that needed bailout money, like Citibank, credit card companies like American Express, and automobile companies, Ford being the largest.
The last time the economy was like this, tennis participation went up. According to the Tennis Industry Association and the USTA, participation is up again and growing higher. Should mean more sales of racquets and balls. It doesn't appear to be the case, although again, the industry and my friends don't appear to be in serious jeopardy yet. To quote one of my long-time acquaintances who works for a major tennis industry brand, "It will be a lean year, but I'll survive okay." So for now, looks like its only the financial sector of the economy that is in the dumper.
I worry about the state of the industry. Heck, I make a living off it myself. But I feel good right now, as it seems that at least finances won't be the big issue in 2009. Roger Federer and Mirka Vavrinec can rest a little easier knowing that R-Fed will have enough chances to win some dough to take care of the baby-to-be that is currently honing its skills under the care of Mirka (congrats you two, long time coming).
So it's just up to the quality of the tennis now. Come to think of it, the last time the economy was like this, along came Bjorn Borg, Jimmy Connors, John McEnroe, Chris Evert, Martina Navratilova, and Evonne Goolagong. Maybe the economy should stay like this for a while for tennis' sake.
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