Through its PIF sovereign fund, the country offered US$2 billion to merge the men’s and women’s circuits, organize more tournaments and participate in a business that, together with the grand slams, moves more than US$649 million.
United States and Europe They have been leading the hegemony of the sports industry for decades in terms of notoriety and business, but no territory has led such a strong offensive in the race to gain presence in sports business like Saudi Arabia. The Middle Eastern country has placed this industry as a pillar of its Saudi Vision 2030 strategy, with which it seeks Project abroad and invest in diversifying your economy so that it depends less on oil. And after him soccer and its takeover bid Golf, saw in him tennis to his main ally.
An offensive that in just over six months achieved the following milestones: winning the ATP Next Gen Finals until 2027, which is the tournament for the stars of the future of the circuit; sign up Rafael Nadal as an ambassador and to open an academy in that territory; organize the Riyadh Season Cup exhibition tournament with Carlos Alcaraz and Novak Djokovic; create another championship, the 6 Kings Slam, in which six of the best tennis players in history and the ATP ranking will compete; sign as a sponsor of the circuit and put $2 billion on the table to unify the ATP and WTA, which would include win a Masters 1,000 and organize the Masters Cup in Saudi Arabia.
“There are countries that go for everything, like Saudi Arabia, that in addition to the world of football and golf, made a significant offer for a Masters 1000 that the ATP will begin in the coming months”he claimed Xavier PujolCEO of the Barcelona Open Banc Sabadell, within the framework of the tournament presentation.
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Of course, unlike the project he launched in the field of golf, in the world of tennis he has not opted for a global business. In this case he did not seek the purchase of the ATP and the WTA, but to align their objectives with those of the circuits. In fact, both tours have joined forces for years, working together with a single commercial office to sell joint sponsorships and reach full agreements. An example of this is the Netflix documentary Break Point. “We need a shared governance and operating model”states the ATP in its OneVision plan, launched last year.
The idea is to make an ecosystem that has 1 billion fans stronger, which makes it the fourth discipline with the most fans, but which only generates 1.3% of the total income from sports audiovisual rights, according to a report by SMG cited by the ATP. In fact, More than 35% of the income of the professional circuit comes from ticketing, while only 20% are generated by television. In the NBA this percentage rises to 50%, compared to almost 60% in the Premier League. The ATP blames the “fragmented ecosystem”, divided between two circuits, the national team tournaments and the grand slam.
Hence, a merger is proposed in the future, a project in which the investment firm CVC wants to participate. In fact, she bought 20% of the commercial business of the women’s circuit for US$150 millions. But it is not the only fund that wants to participate in the business, since the Saudi PIF wants to play as a strategic partner. It does so in a context of change and aware of the calendar that the ATP and the WTA have defined for the next cycle.
The plan OneVision It consists of two phases: the first, focused on aligning the interests of tennis players and tournaments, and creating a premium product. The second will take place next, and consists of merging with the women’s circuit. Saudi Arabia signed as a sponsor in phase one, with the ambition of being a very relevant player for phase two.
Of course, despite not trying to completely take over the business, there are several smaller tournaments that are affected by the Saudi offensive.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
