In London, the ATP Tour and Women’s Tennis Association (WTA) are moving forward with plans to merge the commercial and media rights of the men’s and women’s tennis tours, as reported by three sources familiar with the situation.
Consultancy firm McKinsey & Company has been brought on board to assess potential options, according to one of the sources. The decision to hire McKinsey took place earlier this year, another source revealed.
The resulting entity from the merger could be valued at around 3 billion pounds ($3.84 billion), as indicated by two of the sources.
Both the ATP and WTA released a statement confirming that they are in talks to explore the possibility of combining assets from both tours to create a new joint commercial entity, aimed at providing greater value to players, tournaments, and fans while maintaining separate tours.
They emphasized that these discussions are still in the early stages.
A source, speaking on anonymity, shared that the goal is to finalize the merger by 2025 and consolidate all commercial activities under one entity. This move is expected to streamline operations, reduce duplication, and enhance marketing efforts towards broadcasters and sponsors.
It would also build upon a previous agreement between the WTA and private equity fund CVC, where CVC acquired a 20% stake in WTA Ventures, a new company overseeing broadcasting and marketing operations for the women’s tennis association.
Both CVC and McKinsey have refrained from making any comments regarding the matter.
Additional financial investments may be necessary for the merger, according to two sources. Saudi Arabia’s Public Investment Fund (PIF) has expressed interest in the sport and recently formed a strategic partnership with the ATP.
PIF is also considering investing in a new tournament, potentially adding to the existing 9 ATP Masters 1000 events featuring top-ranked players in the tour.
While the ATP did not provide further comments, ATP Chairman Andrea Gaudenzi previously mentioned discussions with PIF about potential co-investments in various tour aspects such as infrastructure, technology, and events.
The WTA stated that they are actively engaging with other bodies in professional tennis and existing/potential commercial partners to explore ways to bring more alignment across the sport and reduce fragmentation.
Despite no unanimous agreement on a specific outcome, there has been growing speculation within the media about the possibility of shifting the season-ending WTA Finals to Saudi Arabia. Despite opposition from notable figures like Martina Navratilova and Chris Evert, it is anticipated that the event may be held in Saudi Arabia.
The WTA clarified that the host venue selection process for the WTA Finals is ongoing and no final decision has been reached at this time.
The idea of merging the ATP and WTA has been a topic of discussion for years and has gained support from tennis legends like Billie Jean King and Roger Federer. WTA chief Steve Simon mentioned in 2020 that they are competing against themselves and other leagues for fans, sponsorships, and broadcast.
With tennis fans currently needing different pay-TV platforms to watch matches, a potential merger could simplify television contracts and sponsor deals, making it more convenient for viewers.
($1 = 0.7816 pounds)
(Reporting by Amy-Jo Crowley and Anousha Sakoui; Additional reporting by Shrivathsa Sridhar; Editing by Jan Harvey)
