Tennis Related - Off Court Serious Issues

[ti-amie]

Female tennis players offered just 20 per cent of assets in planned merger with men’s tour

Exclusive: Beyond the headline figure, the small print of the merger may be more positive for WTA with a crucial ‘synergies’ clause

Tennis’s elite tours – the ATP and the WTA – are preparing to vote on a commercial merger that would start with assets being split 80 per cent towards the men and 20 per cent towards the women.

While an 80-20 split might represent poor optics for a sport with aspirations towards equality, it also reflects commercial reality. Filed accounts from 2022 show that the WTA’s income for that year stood at a mere £90 million to the ATP’s £238 million.

Once you look beyond the headline figure, however, the small print may be more positive for the women. A crucial “synergies” clause could work in the WTA’s favour – and thus help bring the tours together in what would be the first step towards a less fragmented sport.

While preparing for board votes at the tours’ end-of-year finals – in Turin and Riyadh respectively – chairmen Andrea Gaudenzi and Steve Simon will emphasise that the 80-20 figure is only a starting point, applying to existing assets and projected growth.

Should the merger achieve its aim, which is to bring in extra profit to both tours that they wouldn’t expect to earn on their own, then the synergy windfall would be split 50-50.

To take an example, if the tours’ joint income from a particular area of sponsorship had been forecast to reach £100,000, but the appeal of a mixed-gender package had helped them bring in £110,000 instead, then the synergy income of £10,000 would be split into £5,000 for each party.

Merger could be victory for WTA

And with numerous potential savings on offer through reducing duplication in the two tours’ marketing and commercial departments, some sort of synergy income should be achievable within the first couple of years.

As one insider told Telegraph Sport, “The WTA would be saving on agency fees and head counts and there’s a feeling that this could be a win for them.”

But another source warned that the devil would be in the detail. “If you’re setting up what is known as a ‘ratchet’ deal in the finance world, where revenues are split in different proportions depending on how big they are, then a lot depends on where you put the threshold. If the WTA allow the projected growth figures to be set at a high level, they’ll struggle to reach that 50-50 stage.”

All these details will need to be considered and approved by a number of different stakeholders: not just the ATP board, for instance, but the ATP Masters 1000 events as well.

On the women’s side, one key voice will be that of CVC – the private equity firm which bought a 20 per cent stake in the commercial operations of the WTA two years ago.

Even if all the boards green-light the merger, however, the full benefit would not be felt until the WTA and ATP are able to combine their TV and data rights. The WTA have signed deals with Stats Perform that expire in 2026 for live broadcast and 2029 for data, and these will tie their hands in the short term.

Perhaps the most significant advantage of this deal is that it would open up the possibility of future collaboration with the majors. The united commercial entity would be well placed to discuss running a unified tour with the slams, perhaps something similar to the proposed “Premium Tour” that was in the offing earlier this season.

The “Premium Tour” movement has gone very quiet of late, but the essential concept could be revitalised by an ATP-WTA commercial merger. Were the new body to sit down with the four majors, you would be talking about apples and apples – in the sense that both parties would be representing women as well as men – for the first time in tennis history.


https://www.telegraph.co.uk/tennis/2024 ... r-with-80/

[mmmm8]

How are they going to calculate the "synergy windfall"? How are they calculating "projected growth"? I'd love to see the math.

[ponchi101]

How are they going to calculate the "synergy windfall"? How are they calculating "projected growth"? I'd love to see the math.

From what I am seeing: Anything above the CURRENT sum of the income for both tours will be deemed synergy windfall, if both tours grow in income.
I can't figure out projected growth, though.

[mmmm8]

How are they going to calculate the "synergy windfall"? How are they calculating "projected growth"? I'd love to see the math.

From what I am seeing: Anything above the CURRENT sum of the income for both tours will be deemed synergy windfall, if both tours grow in income.
I can't figure out projected growth, though.

It sounded like the windfall, in the future is what's above the "projected" not the current income. So, if they expect 15% higher profits from an activity in next years iteration of an event as each tour, but they get 17% together, the 2% is the windfall, not the 17%

[ti-amie]

Of course someone took screen shots of what she deleted.

[ti-amie]

She needs a social media manager.

[ti-amie]

Endeavor Explores Potential Sale of Event Assets

Review includes Miami Open and Madrid Open tennis tournaments and Frieze, the world’s leading platform for modern and contemporary art

October 24, 2024 12:00 PM Eastern Daylight Time
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Endeavor Group Holdings, Inc. (NYSE: EDR) (“Endeavor” or the “Company”), a global sports and entertainment company, today announced that it has commenced a review and potential sale of certain events within its IMG portfolio, including but not limited to the Miami Open and Madrid Open, two legendary ATP Masters 1000 and WTA 1000 tennis tournaments, and Frieze, the world’s leading platform for modern and contemporary art.

This review follows the announcement in April 2024 of Silver Lake’s agreement to take Endeavor private, which includes provisions related to the potential sale of certain businesses, excluding premium sports and entertainment company TKO Group Holdings and entertainment agency WME.

“Endeavor’s portfolio includes iconic, global, and must-attend events spanning sports, entertainment, and the arts,” said Mark Shapiro, President and Chief Operating Officer, Endeavor. “As part of Endeavor, Frieze and the Miami and Madrid Open tournaments have each grown significantly, from Frieze launching successful fairs in Los Angeles and Seoul to the Miami and Madrid Opens setting year-over-year attendance and sponsorship records. We are proud of this progress and confident that these unique assets are well-positioned for success in the future.”

Endeavor has retained The Raine Group to assist with the exploratory process.

No definitive timetable has been set for completion of this review process, and there is no assurance that the review will result in any specific action. Endeavor does not intend to comment further regarding the potential sale of its event assets as described herein unless and until it determines that further disclosure is necessary or advisable.

About Endeavor

Endeavor (NYSE: EDR) is a global sports and entertainment company, home to many of the world’s most dynamic and engaging storytellers, brands, live events, and experiences. The Endeavor network specializes in talent representation through entertainment agency WME; sports operations and advisory, event management, media production and distribution, and brand licensing through IMG; live event experiences and hospitality through On Location; full-service marketing through global cultural marketing agency 160over90; and sports data and technology through OpenBet. Endeavor is also the majority owner of TKO Group Holdings (NYSE: TKO), a premium sports and entertainment company comprising UFC and WWE.

About the Miami Open

The 2025 Miami Open will be played March 16 – March 30 at Hard Rock Stadium. The 15-day combined event is owned and operated by IMG. The Miami Open is one of nine ATP Masters 1000 Series events on the ATP calendar, a WTA 1000 event on the WTA calendar, and features the top men’s and women’s tennis players in the world. The tournament is widely regarded as the most glamorous on the ATP and WTA calendars because of Miami’s unique personality, thriving nightlife, five-star hotels and restaurants, beautiful weather and beaches, and celebrity appeal, as well as its close proximity to both Fort Lauderdale and West Palm Beach. For more information, visit MiamiOpen.com.

About the Madrid Open

The Madrid Open is an ATP Masters 1000 and WTA 1000 tournament that will hold its 23rd edition from April 21 – May 4, 2025, in Madrid, Spain. What began as an indoor Masters 1000 event in 2002 has grown in recent years to become one of the biggest combined (ATP and WTA) tournaments in the world of tennis. After moving to the Caja Mágica in 2009, adding the women’s competition and moving to clay courts in spring, the Mutua Madrid Open has become a must-see event for tennis fans around the world. Currently recognised as one of Spain’s biggest sports events, the tournament welcomed a record 380,073 fans in 2024 and is broadcast in more than 180 countries every year. The two-week combined event is owned and operated by IMG. For more information, visit MutuaMadridOpen.com.

About Frieze

Frieze is a leading global contemporary art organisation, renowned for its art fairs, publications and digital presence. Founded in 1991 with the launch of frieze magazine, the brand has grown to encompass seven of the most significant art fairs worldwide in cities including Chicago, London, Los Angeles, New York and Seoul. These events attract leading artists, galleries and collectors, fostering innovative dialogues and practices within the art community. Frieze magazine continues to set the benchmark for insightful art criticism and commentary, while frieze.com serves as a vital online resource. Committed to expanding the reach and understanding of contemporary art, Frieze also hosts year-round curated programs and associated initiatives, such as No.9 Cork Street and Frieze 91, that enrich the cultural landscape.

With a dedicated team passionate about the arts, Frieze remains at the forefront of artistic exploration and cultural discourse, connecting diverse audiences with groundbreaking artists and their work. Frieze is part of the IMG network. For more information, visit frieze.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Endeavor intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including the potential sale of Endeavor’s event assets described herein. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to important factors discussed in Part I, Item 1A “Risk Factors” in Endeavor’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as any such factors may be updated from time to time in the Company’s other filings with the SEC, including, without limitation, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, accessible on the SEC’s website at www.sec.gov and Endeavor’s Investor Relations site at investor.endeavorco.com. Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, Endeavor undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Website Disclosure

Investors and others should note that Endeavor announces material financial and operational information to its investors using press releases, SEC filings and public conference calls and webcasts, as well as its Investor Relations site at investor.endeavorco.com. Endeavor may also use its website as a distribution channel of material Company information. In addition, you may automatically receive email alerts and other information about Endeavor when you enroll your email address by visiting the “Investor Email Alerts” option under the Resources tab on investor.endeavorco.com.

https://www.businesswire.com/news/home/ ... ent-Assets

[mmmm8]

I hadn't realized until I looked into these news that they'd already sold off IMG Academy

[ponchi101]

I hadn't realized until I looked into these news that they'd already sold off IMG Academy

The one truly genius thing from Bolletieri. The understanding that sports academies could be a big business.
He was very good at a lot of other things, but this was super smart.

[Owendonovan]

"synergy" corporate speak used as filler.

[ti-amie]

"synergy" corporate speak used as filler.

[skatingfan]

[ponchi101]

The Rafa Nadal tennis resort. An academy is a place where you go to suffer. No such thing there.
And sponsored by Movistar, too. To those that don't know, it is the largest Spanish comms operator in the world. So they must have invested a lot of money.
Would like to spend a week there.

[Owendonovan]

Might want to get some drainage, unless running in water is part of their conditioning model.

[ponchi101]

Might want to get some drainage, unless running in water is part of their conditioning model.

The more water, the heavier that court. And you know Rafa loves a slow clay court.