ATP CEO Gaudenzi seeks cooperation with 'T-7' group; no 'NBA bubble'

ATP CEO Andrea Gaudenzi shot down suggestions of a potential "NBA bubble" for the tour, but says the sport will have more of the collaboration that was established between its various governing entities during the coronavirus pandemic.

In a Q&A published on the ATP website, Gaudenzi stated that moving events to one location was an expensive task that the NBA could afford because it receives broadcasting rights fees that total $1.5 billion.

"Playing in the same location solves the complexity of international travel but doesn’t solve financial problems. The NBA reportedly invested US$180m in setting up and operating the bubble in Orlando," Gaudenzi said.

According to Gaudenzi, ATP events would have further problems since they are independently run and located in different countries with different broadcast schedules and sponsorships.

"Tournament sponsors are local to each event," he said. "There are of course exceptions within markets where it makes financial sense, also from an event ownership perspective... such as relocating the Western and Southern Open from Cincinnati to New York, and playing all 'Australian Summer' events in Melbourne."

The 2021 Australian Open men's final, with limited capacity. (Getty Images)

During the Australian Open, Novak Djokovic had called for the ATP to establish a bubble for forthcoming tournaments, with Alexander Zverev suggesting that sponsor signage could be changed for each event. There was also different signage at Flushing Meadows for the Western & Southern Open and the US Open.

Recently, John Isner attacked the extent of prize money reductions at ATP events, saying on social media that players were being disproportionately impacted. He referred to measures that currently allow ATP events to reduce their prize offerings by 50-60 percent if they have little or no crowds, though that is now capped at 80 percent for smaller events. He was also critical of top ATP staff who he said had not taken salary cuts, a criticism also previously made by other players.

Both Djokovic and Isner are members of the PTPA, a player group former in 2020 aiming to represent the interests of players independently from the ATP, which is a partnership between players and events.

Gaudenzi said that the various restrictions and changes had cost events $60-80 million, while the ATP had reduced expenses, including executive pay, by $9.5 million. The Italian, a former ATP player, noted that ticket sales are usually around 40 percent of a tournament's earnings, and sponsor income, usually around 35 percent, was down a third because of reduced crowds.

Still, he said, this showed there was a greater need to shift more attention towards increasing rights and data sales.

"Historically, our events have relied disproportionately on ticket sales relative to most other major sports, and the pandemic has exposed that," said Gaudenzi.

The 2021 Rotterdam final, without fans. (Getty Images)

Such changes were also part of the "strategic plan" he has pushed since taking the CEO position at the beginning of 2020. While some of the structural changes have been put off because of the recent turmoil, some steps have been taken towards the goal of improving co-operation between the factions of the sport.

"As part of that we have set up a new ‘T-7’ working group with the WTA, ITF and the four Grand Slams—the group meets frequently and there’s a commitment to time and resources from all seven stakeholders. Everything is on the table, from governance, operational and commercial synergies," Gaudenzi said.

The CEO had a positive assessment of the way the sport had worked together during this period, but would acknowledge that the ATP had communicated poorly with players at times and some players had been affected more by restrictions than others.

ATP events are offering players an average of 77 percent of their usual winnings, according to the ATP, including $5.2 million in funding provided by the tour.

The ATP also plans to provide $20 million in funding for the ATP Challenger Tour.