Front Desk Staff, Facility Managers, Instructors, Directors of Racquet Sports, and Club Owners. 

Want to join the Catalyst Tour event in San Diego? The special 10-year Celebration Price is only $99 (Includes:  Both Days of In-person training and networking. Tactical Session and pickleball networking. Light breakfast and catered lunch)

Tax-Exempt Advantage to For-Profit Pivot: Is USTA PNW Redefining the Regional Racquet Economy?

This troubled USTA section, which was reported to me years ago as “the laughing stock” by the USTA national staff, is now rumored to plan a status change from nonprofit to for-profit. I asked myself, what’s going on?

First, I looked at the IRS Form 990 filed for the last few years. Here’s what I saw:

So, at almost $9 million in revenue, PNW executives, some of the highest-paid USTA section staff, managed to lose $255,000 in 2025. How did that happen? Let’s just look at one item in the IRS Form 990: Executive compensation.

That explains some of the increase in expenses, doesn’t it? But there was one more rather interesting item in the 2025 IRS Form 990: The peculiar case of a certain Renée Gordon. I don’t even want to talk about the CEO Matthew Warren and the $459,000 he took home. Or the COO China Kirk, who made $307,000.

Ms. Gordon worked at the section as Chief Advancement Officer from June of 2024 until November of 2025. In 2024, she earned $129,430. In 2025, she took home $238,786 and exited with “retirement and other deferred pay” of $209,294. Really? After 17 months working for a section with a reputation for executives who, according to some former employees, “loot” the USTA, this lady takes home $577,510. Amazing! (See also our reporting from August 2022 and many other times)

$577,510 to an employee

who only worked 17 months!

So they hired a person with 12 years of fundraising experience at the University of Oregon to “leverage my extensive experience in strategic planning, community engagement, and organizational leadership to drive the mission of promoting and developing the sport of tennis.” If they expected her to raise funds, it obviously didn’t work for 2025. Or maybe she didn’t raise enough?

Can you see the trend? They’re paying obscene salaries, giving employees who only worked 17 months obscene amounts of dollars, and showing a loss after $9 million in revenue. Wow! And the PNW Board is ok with this?

But I wanted to focus on the rumored plans to change the USTA PNW status from nonprofit to for-profit. First, I did a little digging because I needed to know why they would even consider this. Here’s what I found:

The Camas High School Facility Controversy

The USTA Pacific Northwest has been embroiled in local administrative legal battles regarding public facilities.

• The Dispute: In 2024, the USTA PNW entered into a 30-year partnership with the Camas School District in Washington to build a massive, 60,000-square-foot covered tennis facility over Camas High School's courts.

• The Challenges: Local community opposition challenged the project's conditional use permit, alleging safety and traffic concerns. A hearings examiner dismissed the opposition's appeals, allowing the project to proceed. Independent tennis advocates have also publicly criticized the USTA PNW's aggressive strategy of acquiring and managing local facilities (like the Vancouver and Galbraith Tennis Centers), claiming it harms private tennis clubs and independent pros.

So, as I see it, the USTA PNW driving private facilities out of business is the issue here. I raised my voice about this in our September 2024 issue: USTA Sections' Undeclared War On Private Clubs and Independent Teaching Pros.

The Potential Status Shift

Investigating a potential shift from a 501(c)(3) non-profit status to a taxable/for-profit structure (or creating a taxable subsidiary) is a compelling angle for my investigative mind.

Converting a non-profit entity directly into a for-profit corporation is legally quite complex due to IRS non-profit asset lock rules (assets acquired under tax-exempt status generally must remain dedicated to charitable purposes or be transferred / purchased at fair market value). However, organizations often pursue hybrid models, taxable subsidiaries, management contracts, or corporate spinoffs to unlock revenue streams or bypass non-profit operational constraints.

I. The Lead: The Shift from Mission to Market

• The Hook: Introduce the rumor of a corporate/tax status modification alongside the backdrop of USTA PNW’s rapidly expanding physical facility footprint (e.g., regional tennis centers and public facility management proposals like Portland Tennis Center).

• The Central Thesis: If a non-profit section transitions operations or key business units into for-profit entities, it changes the conversation from public service and access to commercial market capture.

II. Legal & Structural Reality: How Would Such a Shift Actually Work?

A look at the regulatory mechanisms behind a "non-profit to profit" move:

1.   Taxable Subsidiary Creation (Most Likely): Establishing a taxable C-Corp subsidiary owned by the 501(c)(3) to handle commercial activities (e.g., court management fees, pro shop merchandise, software/tech platform licensing) without risking the parent's tax exemption.

2.   Joint Ventures / Management Entities: Forming LLCs with private management partners to operate public-private partnership (P3) facilities.

3.   Asset Sale / Buyout: Selling operating assets to a separate for-profit management firm (which requires independent valuation to avoid IRS inurement violations).

III. The Strategic Motivations: Why Consider a For-Profit Pivot?

The operational and financial drivers that may push a major regional non-profit toward a commercial model:

• Unrelated Business Income Tax (UBIT) Caps: IRS rules limit how much non-exempt revenue a 501(c)(3) can generate before endangering its status.

• Capital Raising Constraints: Non-profits cannot issue equity to investors. A taxable entity can bring in private equity, debt financing, or strategic commercial investors.

• Executive Compensation & Flexibility: For-profit structures eliminate public Form 990 executive compensation disclosures and IRS restrictions on performance incentives.

IV. Impact on the Local Racquet Sports Ecosystem

Examining the real-world consequences for independent tennis clubs, teaching professionals, and municipal operators:

• The Level Playing Field Question: If USTA PNW built its initial scale, facility access, and branding under the protection of 501(c)(3) tax exemption and municipal sub-leases, does transitioning to a commercial model create an unassailable unfair advantage?

• Pricing & Market Distortion: Contrast subsidized municipal rates against commercial operating costs (property taxes, commercial loans, sales tax).

• Coach & Workforce Dynamics: How a corporate shift affects local teaching professionals—from independent contractors to centralized employees.

V. Key Questions & Verification Checklist (The Reporting Agenda)

Outlining the specific steps and public records required to confirm or debunk the rumor prior to publication:

VI. Conclusion: The Future of Community Tennis Governance

Examining the broader industry implications:

• Is USTA PNW really an isolated case, or does this reflect a national trend where regional governing bodies evolve from grassroots sanctioning organizations into commercial facility management conglomerates in direct and purposeful competition with local tennis clubs?

• Unrelated Business Income Tax (UBIT) Caps: How much does the IRS see as the maximum cap?

• Executive Compensation & Flexibility: Does the USTA PNW plan to increase the current obscene executive compensation even more?

I can’t wait to see what’s evolving in the Pacific Northwest and want to encourage all those whistleblowers to come forward again.

Ever so often, I go on the FIND A COURT site to check on the accuracy. And I always get disappointed. This time I decided to publish my findings. I added my zip code of 91604. Here are 8 of the first 15 search results. Only ONE of those was correct!

1. Weddington Golf & Tennis - doesn’t exist anymore
   Bulldozered away after the USTA SoCal publicly supported the destruction of those 16 courts.

2. Studio City Recreation Center - wrong name
   It’s called Beeman Park. The Rec Center closed down decades ago.

3. Beverly Garland - no courts
   Not sure if they ever had one.

4. Dream Tennis Academy - not city-approved at the NoHo Rec Center

5. NoHo Rec Center - correct with 5 public courts

6. Notre Dame High School - no public access
   3 public courts listed

7. Los Angeles Valley College - no public access
   8 public courts listed

8. Grant High School - no public access
   4 public courts listed

My take: This was only a small sliver of land in Southern California. Since those erroneous listings are all in the USTA SoCal section, I am not surprised!

Looking for a new position in racquet sports? The American Racket Sports Association features a massive new Job Board on their website.

The filters include all U.S. Regions and International, all Racquet Sports, Job Listing Sources, and all Titles.

Looks like a fantastic new resource for the industry.

Another One Bites The Dust

The article in the Sun News is titled, Will a popular Myrtle Beach tennis facility be replaced by new homes? It certainly looks that way.

My Take: Ten great clay courts and a happy tennis community may disappear. Reminds me of my hometown Studio City in Southern California, where 16 beautiful courts disappeared, and the USTA Section applauded it! I don’t expect the USTA Southern Section or the South Carolina District to intervene here.

PTR + DIADEM

RSI Magazine writes PTR Announces Diadem as Official Racquet, Bag & String Partner. The article mentions, “As part of the partnership, PTR members will receive exclusive access to Diadem’s Pro Preferred pricing program, offering significant savings on racquets, bags, shoes, and other equipment.”

My Take: I checked around a little and found out that HEAD had dropped the PTR last year already. Somehow I missed that little piece of information. As a true HEAD fan who had the pleasure of getting to know many of their Ad Staff members in Southern California, I’m kinda sad. What happened? Maybe someone at the PTR can solve that puzzle for me? Email me.

Can We All Learn From the NFL?

The Daily Playbook wrote, NFL Distributes Over $14.5B in Shared Revenue to Its 32 Teams

• Each team received over $450M from the NFL, America's premier football league, marking a 5% increase driven by national television and sponsorship deals. 

• This guaranteed money entirely covers each team's $279M player salary limit, making every franchise wildly profitable before selling a single stadium ticket. 

• The league plans to increase this wealth by renegotiating its $125B broadcasting deals with major networks like ESPN and Fox before 2033.

My take: What if we put the Grand Slams under one umbrella organization? The combined revenue of all Grand Slams is about $1.9 billion. We’ll take 30% of that revenue, $570 million, and distribute it to players ranked 101 to 670. 570 players would receive $1 million each. Or we give players ranked 101 to 1,000 $633,000 each.

That should keep them going for a while. No?

Is Pickleball Doomed?

Michael Girdley is a regular Pickleball player who makes a good case why the sport he loves is doomed. Could he be right? See for yourself.

Michael has 316,000 subscribers, and this video has 628,000 views! He says the business of Pickleball is in for a lot of pain.

My take: I understand his logic: Boomers carried Pickleball, and they’re aging out. Gen Z is not too eager to fill that gap. The young generations find it cooler to play Padel. And a lot of people think he’s right when he says that Padel actually is way cooler than Pickleball.

What do you think? Email me.

Re: INTENNSE

• Ridge Head Coach Claudio Pistolesi Steps Aside To Address Family Matter

• INTENNSE Championship Weekend to Feature HawkVISION

• Austin Roebuck Named Head Coach Of The Ridge

• INTENNSE Elevates Player Development with Zenniz Smart‑Court Technology

• Female Players Make Their Mark at the INTENNSE Season Halfway Point

• INTENNSE Reaches Midseason Milestone With Record-breaking Growth Across Key Categories

Re: RacquetX

Robyn Duda is sending out a new email every other Tuesday, titled The Briefing (Business Intelligence for the Racquet Sports Industry). She calls it “Same friendly inbox. A bit sharper lens.”

RacquetX City Series Calendar

August 18 San Diego
October 6 Chicago

See all details here: https://theracquetx.com/racquetx-city-series/

Five Sessions, Five Real Questions

A look inside the City Series room. Every stop is built around the same five conversations, because these are the five questions operators are actually trying to answer right now.

Sign up for Robyn Duda’s Briefing here: https://theracquetx.com/contact/
RacquetX 2027 website: https://theracquetx.com/

Re: Doping + Match Fixing + DQs + Sexual (and other) Abuse

Daily Playbook
Former Tennis Player Samuel Bensoussan Sees Match-Fixing Ban Extended To Three Years

yahoo!sports / ESSENTIALLYSPORTS
Tennis Player Immediately Disqualified After Racket Throw Hits Spectators at Wimbledon

The Black Chronicle
Ex-wheelchair tennis athlete says USTA coach groomed her

YouTube
Former pro tennis player arrested, slammed rackets at store, cops say

BBC: 'Not a carnival sideshow' - doubles players fear cutbacks

A group of leading doubles players have accused the men's ATP Tour of trying to "end doubles as a viable profession". Read more.

SBJ360: “The Wolf in Winter”

Prime Video, Words + Pictures and Sadoux Productions on Thursday held a premiere for the new Novak Djokovic documentary, “The Wolf in Winter,” at the Museum of Modern Art in Manhattan. The film releases Aug. 20. Those in attendance included Djokovic adviser Mark Madden, Tennis Channel CEO Jeff Blackburn, USTA CCO Kirsten Corio, U.S. Open Tournament Director Eric Butorac, tennis HOFer and analyst John McEnroe, former tennis player Juan Martin Del Potro, Beemok Capital owner Ben Navarro, FIFA President Gianni Infantino, Fanatics founder and Chair Michael Rubin, McLaren Racing CEO Zak Brown, Conde Nast Global Chief Content Officer Anna Wintour, among others (SBJ). Read more.

DEFECTOR: Tennis.com Lived And Died With The Internet

A day after the French Open ended in May, the website tennis.com shut down its editorial operation. The brand dates back to the founding of Tennis magazine in 1965, and though the mag folded in 2022, the website continued to produce news, analysis, and feature articles. At least, until after the clay season. The new site amounts to a scoreboard for ongoing tournaments with tabs for the upcoming schedule and rankings. Read more.