Racket Business - Publisher's Notes for July 2024

QUICK NOTES

Hats off to Rosie Casals
"Five foot two (and a quarter) of pure tennis genius" (Olympian Barbara Higgins)

Hats off to Rosie Casals, a tennis legend who has made significant contributions to the sport. As an Olympian and one of the "Original 9" with Billie Jean King, Rosie Casals continues to inspire with her passion and dedication.

I recently had the opportunity to meet Rosie Casals at the San Diego Tennis Fest in May, and I was amazed by her energy and vitality. Despite her mature age, she exudes more vigor than some of the top-ranking players in the Women's Tennis Association (WTA).

In addition to her sporting achievements, Rosie Casals also runs her own company, Sportswoman Inc., is one of the Original 9 with legend Billie Jean King, and is actively involved in various philanthropic endeavors. She has been recognized as an activist, Wimbledon Champion, and an all-around exceptional individual.

One of her notable initiatives is the Love & Love Foundation, which has joined forces with the Richard “Pancho” Gonzalez Youth Foundation based in Goodyear, Arizona, to establish the Latin American Tennis Foundation (LATF). This collaboration aims to promote tennis and provide opportunities for aspiring players in Latin America.

Rosie Casals' impact extends beyond the tennis court. She is a sought-after interviewee, guest on podcasts, and frequently mentioned in the media. A quick search on Google will reveal the vast array of interviews, podcasts, and articles that showcase her achievements and contributions to the sport.

Personally, I admire Rosie Casals immensely. She is like the proverbial Energizer Bunny, constantly demonstrating enthusiasm and dedication. Hats off to her!

Main Topic

USTA - Masters in Reputation Laundering

I have had the privilege of attending the US Open on two occasions, making it a subject of great interest to me. In both instances, I was fortunate enough to secure tickets through various connections and circumstances.

The first occasion was particularly special, as a kind friend who had purchased two tickets to the US Open President's Box at the Billie Jean King charity event in Pasadena, California, graciously offered them to Pat and me. Being able to attend the event from such a coveted vantage point was truly a remarkable experience and I came to understand the significant value that President's Box tickets hold as a promotional currency.

On the second occasion, I was unexpectedly gifted a free ticket from a staff member of the United States Tennis Association (USTA). Unfortunately, the seat assigned to me was situated quite high up in the Arthur Ashe stadium, which had been recently equipped with a new roof. Regrettably, there were air conditioning issues during that particular match, resulting in an unpleasant odor permeating throughout the area. It was an unfortunate turn of events that marred what could have been an otherwise enjoyable experience.

When a reader shared a screenshot of his attempts to purchase two grounds passes at the US Open for himself and his 9-year-old son on Saturday, August 31, I was again made aware of an issue I had often written about in the past. The screenshot displayed a payment request of $761.21 by Ticketmaster. Although I acknowledge that these were resale tickets and understand that this poses a significant challenge for the USTA, I find it difficult to believe that no measures have been put in place to prevent resellers from acquiring such large quantities of tickets. The reader was put at a disadvantage as they were required to pay the full adult price for their son's ticket. Consequently, they made the decision not to attend the event.

Btw, I checked Arthur Ashe stadium tickets for the day session on the same day. I decided to splurge a little and spring for a Premium seat. Up came all resale tickets so I filtered resale out and guess what choice Ticketmaster gave me?

ONE TICKET ALL AFTERNOON FOR $982!
ONE IN 23,771 SEATS!

But I digress. I want to make a case for the USTA being a “sportswasher.” Bear with me, folks.

In my humble opinion, the USTA created four problems that tarnished its reputation. Three of them are related to the US Open. 1. High Adult ticket prices 2. Junior ticket prices 3. Sexual discrimination lawsuits. 4. The majority of the proceeds are being wasted on salaries for about a thousand people and price money.

Let’s dissect that a little.

1. Adult Ticket Prices
   Resale tickets present a significant challenge for the USTA. At Arthur Ashe Stadium, regular tickets are priced between $69 and $5,550, as well as additional Ticketmaster fees (2023). Consequently, only individuals with the financial means to afford these tickets, or those who can write off the expense, have the opportunity to purchase them. It is understandable that tennis professionals who travel to the US Open may not show much interest in or comment on my posts. They have the ability to cover the cost of tickets, travel, accommodations, and meals as part of their business expenses. I could also take advantage of this option and therefore won’t blame them. However, this situation is becoming increasingly disadvantageous for those who cannot afford these exorbitant prices, particularly families with children who are unable to experience the excitement at the AA stadium. The situation with ground passes is no different. While the USTA claims they are available for $25 each, this is simply not accurate. Trying to obtain them through Ticketmaster is a challenging endeavor. This suggests that the US Open may be perceived as an exclusive event targeted towards individuals with significant financial means.
   

2. Junior Ticket Prices
   I have extensively reported on the unfortunate situation where every child over the age of 2 is required to present a full adult ticket. It is apparent that the US Open's primary objective is not to foster the growth of tennis but rather to maximize revenue and establish itself as the preeminent Grand Slam event with the highest prize money. While I understand this perspective, it is intriguing to note that the Australian Open adopts a contrasting approach by allowing children under the age of 15 to attend for free. Rather than being strange, this can be considered a commendable policy implemented by the Australians to engage young individuals and provide them with the opportunity to experience a large-scale tournament. By doing so, they effectively cultivate interest in the sport.
   

3. Sexual Discrimination Lawsuits
   I prefer not to delve into the specifics, but it is important to acknowledge that the USTA's reputation has been negatively affected by the four lawsuits. It is best to leave the discussion at this point. For further information on recent developments, please refer to the "UPDATES" section.
   

4. Wasted Millions
   With $500 million in revenue, it is expected that the US Open would generate a net profit of at least $50 million. However, the actual figure falls significantly below this mark. Despite this concern, it is important to consider several other noteworthy financial aspects. Allow me to outline some of the recurring expenses that the US Open and other USTA revenue bear on an annual basis, rounded up or down.

The total amount is $212 million, a significant portion of which is being wasted. However, it is unlikely that the USTA executives, including the Board of Directors, will be held responsible for this misuse since they do not consider it to be their own funds.

Now that I have presented my concerns regarding the tarnished reputation of the USTA, I would like to delve into the topic of reputation laundering or sportswashing.

Wikipedia states, “Sportswashing is a term used to describe the practice of nations, individuals, groups, corporations, or governments using sports to improve reputations tarnished by wrongdoing.” They continue stating, “At the individual and corporate levels, it is believed that sportswashing has been used to cover up vices, crimes, and scandals. Sportswashing is an example of reputation laundering.”

How is the USTA covering up scandals and wrongdoing? I have found two ways they do it. Fan Week with Arthur Ashe Kid’s Day at the US Open and the USTA Foundation. There may be more, like the annual awards and trophies for clubs, facilities, individuals, and organizations that toe the line but I want to focus here on the top two.

Fan Week with Arthur Ashe Kid’s Day
Indeed, everyone enjoys a good time without a doubt. However, I question the inclusion of the children-centric Fan Week. Is its purpose to divert attention away from the main attraction? This strategy, combined with the rule that children over the age of 2 must pay the full adult ticket price, proves to be quite effective. I am curious if this arrangement is outlined in the contract with sponsors such as JP Morgan or Cadillac, ensuring that their clients' tennis experience and enjoyment of alcoholic beverages remains undisturbed by children. After all, who desires the presence of screaming 5-year-olds when witnessing Nole's powerful ace? Likewise, who wants to be observed by 10-year-olds while indulging in their seventh Honey Deuce? Fear not, as the $150+ for these beverages can be deducted as a business expense. Alternatively, imagine having paid $1,900 for two tickets only to find that your client is seated next to a child. Even in the midst of ongoing allegations of sexual discrimination, the media will undoubtedly lavish praise upon Fan Week and Arthur Ashe Kid's Day. Well done, PR department. Your successful management of the company's reputation is highly commendable. But what do you say to the hundreds of thousands of parents and kids who can’t afford to see main draw matches? Do you even care?

USTA Foundation
Upon closer examination, the USTA Foundation, as an organization, raises some concerns. Notably, it receives a mere 1% of the USTA's annual budget, totaling $6 million, to cover 41,642 U.S. zip codes. While it also generates an additional 5 or 6 million through independent means, this amount remains insignificant, consequently leaving their primary beneficiary, NJTL, severely underfunded. It becomes a matter of curiosity whether the highly compensated executives of the organization contribute anything to the Foundation. Despite the scale of these donations being relatively small, as little as $5,000, the Foundation ensures their distribution to other CTAs is extensively publicized through press releases, effectively portraying the USTA's commitment to promoting tennis growth through grants. This practice may be seen as an exercise in reputation management.

Conclusion
The USTA appears to have effectively managed (laundered) its reputation. The organization's executives and board members may aim to create the perception that everything is running smoothly in the world of tennis. However, this is merely an illusion. It is unfortunate that I seem to be the sole individual speaking out against the USTA's decision to set exorbitant prices for US Open tickets, which renders them unaffordable for the majority of tennis enthusiasts. Nevertheless, I am committed to persistently shedding light on the questionable practices of our National Governing Body.

THINGS THAT MAKE ME GO hmmmm…

Lake Nona
There have been reports indicating that the clay courts at the USTA’s National Campus, known as the "Home of American Tennis," are currently facing significant maintenance issues and some are even deemed unplayable. This information is concerning, considering the substantial annual spending of $3-4 million to upkeep just those clay courts. One might question whether the organization is facing financial difficulties. Surprisingly, that does not seem to be the case as the organization is redirecting funds from the sale of the Cincinnati Open to different projects. Specifically, they are allocating resources toward the construction of additional Pickleball and Padel courts. The rationale behind this decision seems that these sports are considered to be part of the broader tennis community. Furthermore, the USTA believes that hosting Pickleball tournaments will contribute to generating revenue, which may potentially fund future salary increases for Lew Sherr.

Brian Hainline - Enemy of Women’s Sports?
The USTA President has apparently resigned from his position as NCAA Chief Medical Officer. It is my opinion that he should have done so a couple of years ago, as he was on the USTA Board when their decision not to support College Tennis players came down, directly affecting the NCAA's budget. (See my article from September 2022.) Currently, there are indications that there may be another side to his resignation. According to my sources, he may have been asked to resign due to his stand in favor of transgender athletes, which is seen by the majority of the NCAA leadership as detrimental to women's sports.

Simultaneously, Dr. Hainline is also known to be seeking a second term as USTA President. In light of these circumstances, I strongly urge the USTA Board not to approve his re-election. It is crucial to find someone else who is more focused on the core values of growing the game and protecting women's sports.

USTA Apprenticeship
I assume you all have read the announcement: Elevate your career with USTA’s new Racquet Sports Management Apprenticeship.

Did you notice? It’s a paid apprenticeship that offers $75K a year with benefits. Nice, right? Sadly, we seem to be back to the old “money growing on trees” way of operating from the unfortunate Gordon Smith/Kurt Kamperman era where they spent freely without growing the sport at all.

Upon reading this announcement, The Commish expressed interest in the two-year paid apprenticeship program that aims to develop leaders in the tennis industry. They believe that the program will likely attract a significant number of applicants. However, The Commish questions the relevance of the program and whether it aligns with the industry's needs and desires. They also wonder if current tennis professionals would be willing to relocate to Lake Nona for this certification. Additionally, The Commish raises concerns about potential competition between this program and existing programs such as the USPTA, PTR, and Kim Bastable's program.

Overall, there seems to be some uncertainty regarding the program and its impact on the industry.

WORLD PICKLEBALL CONVENTION

Why did the World Pickleball Convention need ‘Alex, your AI Host’ to introduce the event on their website? What did Alex do better than a human host?

Plus: This 34-minute Video is weird. With an interviewer by the name of ‘Anderson Pooper’ you can’t go wrong. Right? The video shows this odd-looking Pickleball glove. I didn’t know you needed that. And how about that ‘Slam Master Pro’? Hu? And check out that Pickleball Bug Zapper!

The highlight of the show: ‘Cosmic Crisp’ apples were promoted at the show (each apple in its own cardboard display box). Are Pickleball players really known to be heavier spenders than golfers? They cost between 5 and 10 bucks EACH online.

PlayReplay

While reviewing the USTA's investment activities, particularly in tech companies, it is important to consider their track record and ability to successfully execute projects outside of the US Open. Given the challenges experienced with previous ventures like WTN, there is cause for skepticism. One such investment is in PlayReplay, an electronic line-calling system designed for junior, adult, and recreational play, as reported in the RSI article.

Upon examining the PlayReplay website, some aspects appear peculiar. Notably, there is a lack of a unit photo and price information, both on their website and elsewhere. Furthermore, even an in-depth research study on PlayReplay fails to provide a photo of the unit, only offering screenshots. This raises questions about the transparency of the company's operations.
What are they hiding?

WRC24

I commend the USPTA for curating an impressive roster of speakers for the upcoming World Racquet Conference 2024 in September. I was a little surprised to see Sarah Stone included in the speaker lineup. But then I thought she’s probably an excellent speaker and would explain why she so unexpectedly and abruptly departed from the Women's Tennis Coaching Association, leaving it to Ann Grossman to salvage. It is merely an observation, akin to John Embree's decision to allow failed ex-USTA executive Kurt Kamperman to speak at a previous convention. Can’t wait to hear her speak.