Lew Sherr, the new USTA CEO, was recently interviewed on “Here to Serve,” a podcast produced by USTA Florida. In the true spirit of Fiend at Court, I have been dissecting every word he said. When asked how the US Open stacks up against the other major tournaments, Sherr gave the obligatory and expected answer that the US Open is a clear leader commercially and financially. However, his enumeration of why is illuminating.
Sherr believes that the US Open is highly profitable because the organization has historically understood that tennis tournaments are fundamentally different from other spectator sporting events. The Billie Jean King National Tennis Center was intentionally constructed as a festival venue rather than exclusively as a spectator arena.
The party atmosphere is a significant reason why the US Open earns in excess of $400 million annually. That total is largely driven by hospitality and sponsorship rather than direct ticket sales. However, I am not convinced that it was great foresight that transformed the US Open into a festival. The organization has a history of putting on lavish parties. In any case, that is a point not worth debating outside analysis of organizational culture.
The proceeds from the US Open drive the fundamental mission of the USTA which is to promote and develop the growth of tennis. So while the party that the USTA throws at the US Open each year may be the most significant ongoing annual project of the organization, it is not the primary mission.
In “You Cannot Be Serious“John McEnroe details what it is like to play tennis in big venues as a potential reason for his on-court anger issues. His language evokes images of gladiators fighting to the death in hand to hand combat. Meanwhile, he describes the fans as “eating cheese sandwiches, checking their watches, and chatting with their friends about the stock market.” McEnroe’s sharp insight into the curious relationship between spectators and tennis will be amplified tomorrow.
The US Open is built around the idea that the people who attend are there to engage with tennis in ways other than simply watching matches. The event provides many opportunities for dining, drinking, shopping, art exhibits, and people watching. We are meant to soak it all in. That is exactly what I plan to do over the next couple of weeks.
The primary business of promoting and growing the game of tennis will come later. There are fifty more weeks in the year.
- Here To Serve: CEO Chat: USTA Priorities, USTA Florida, August 3, 2022.
Must admit I am an avid tennis fan and am fortunate to have visted the Championships at Wimbledon on may occasions.
Wimbledon is a private club which donates lots of money from the Championships to the Lawn Tennis Association of GB. At Wimbledon, there are lavish facilities for those that can pay – but sponsorship is very strictly controlled. There are few opportunities for advertising within the site.
The contrast with the raucus US Open cannot be more stark. Spectators are seemingly not controlled in any way. At Wimbledon, spectators are threatened with removal if they move from their seat during play and you can take in your picnic and bottle of wine!
At the Miami open, I recall being told to jetison my half bottle of water before entering the site…. so I could buy one inside.
Someone is being ripped off – but they still keep going!