Unlock the editor’s summary for free
Roula Khalaf, editor of the FT, selects her favorite stories in this weekly newsletter.
The organizers of the US Open tennis championship last year sold more than 500,000 of their exclusive cocktail, “Honey Deuce”. At $ 23 per glass, the drink raised $ 13 million. On the contrary, the male and female champions of the New York City event took home a combined prize of only $ 7MN.
For Bill Ackman and Novak Djokovic, that gap is a problem worthy of a lawsuit from the Federal Court of the United States. The couple, a coverage fund manager and the other tennis champion, are friends, contrary to the cultural war and partners in the Association of Professional Tennis Players, a new group that aims to defend the players. More recently argues that Tennis stars are being damaged by an antitrust conspiracy Among the power runners of the game.
Sport is not like other industries when it comes to market forces. Economists, legislators and courts have found that restricting competition to limit the number of leagues actually increases the cake. In winning confrontations, all players compete together, increase dramatic tension, fans’ interest and advertising income.
The result is in fact a great cake. But real competitors, players, think that their portion is not large enough. Labor disputes between the talent in the field and the costumes organized by the parties are common. The vast fortunes that are now coined through television rights have only left gladiators wondering why they are not richer.
The PTPA says in its demand that the award -winning money for professional tennis players only adds a fifth of gross income. In the great team sports, such as American football and basketball, players have collectively bargain for approximately half of the income. That is particularly hard for tennis players, who, as individuals instead of players in a team, have their own training and trip costs. His season also lasts 11 months, since he follows the sun around the world.
In this antitrust battle there is no clear favorite. It is true that the $ 186 million in total prizes won by Djokovic is exceptional. Only the best players earn a good life, and that while risking a constant injury. That said, the ATP, which supervises the professional male game, argues large groups of bonuses, minimum victories even for subsistence and financial transparency athletes have become the norm.
It can be reduced to what counts so generous for players. In the US Open last year, individual players eliminated in the first round still obtained healthy $ 100,000. The total gross bag for the tournament was a $ 75mn record. ACKMAN is used to launching large numbers and causing a fuss; Djokovic is better to emerge as the winner. The case will be an intriguing evidence of whether the two, from very different origins, function as double partners.