Finance Uncategorized

ATP prize money increase a ‘testament’ to popularity

ATP prize money will be increasing starting in 2015, reaching $135 million by 2018.

Chris Kermode, Executive Chairman and Presdient of the ATP, with the players of the ATP World Your Finals in London (Source: Getty Images)
Chris Kermode, Executive Chairman and Presdient of the ATP, with the players of the ATP World Your Finals in London (Source: Getty Images)

After a year of negotiating, the ATP (Association of Tennis Professionals) has announced a long-term prize money increase for the men. The ATP World Tour will see an increase that will reach $135 million by 2018. Prize money will exceed $100 million in 2015 for the first time, surpassing the $93 million awarded this year.

“Players are on one side, and tournaments are on the other,” said Chris Kermode, the ATP’s president, when describing the negotiation process.

Tennis reporter Ben Rothenberg tweeted that the tournaments and the players were negotiating between a 5 percent and 17 percent increase, respectively. Players getting the 14 percent increase was a big win for them.

According to the ATP, the increase for the events are a “testament to the sustained success of men’s professional tennis, as well as demonstrating the ATP’s confidence in the strength of its product and projected growth in future years.” The following table shows how the ATP has been increasing its profits, showing signs of consistent growth.

ATP Revenues 2010-2012 (source: Sports Business Journal)
ATP Revenues 2010-2012 (source: Sports Business Journal)

The Masters 1000 and Masters 250 categories will be seeing this increase through 2018. For the Masters 1000, the tournaments will have an annual 11% increase with additional 3 percent contribution from the ATP, totaling 14 percent.  The Masters 250-level will see an average of 3.5 percent per year.

Currently, the Masters 1000-level has six of the nine with total prize money less than $4 million. The top purse in the 1000s is the BNP Paribas Open in Indian Wells, Ca., which awarded $5.24 million this March.

Details regarding the disbursement between singles and doubles are currently unavailable, but in July sources said, “tournaments would help singles players by shifting the percentage of tournament prize money paid to them from 80 percent to 87 percent. The remainder falls to doubles players.”

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