The US Open welcomed 216,029 fans to watch performances, practice rounds and qualifying over the past seven days, up 37% from last year’s pre-tournament record. The tennis tournament is currently enjoying large crowds and increasing revenue.
The record attendance at Fan Week reflects a business priority for the United States Tennis Association (USTA), which is hosting its fourth Grand Slam of the season and is looking for ways to expand its reach beyond the 14 days of singles competition. It also bodes well for an event that has taken off financially in recent years.
Last year, 957,000 fans attended during Fan Week and the two weeks of tournaments, a record, and this year the USTA is aiming for one million. In its 2023 audited financial statements, the USTA reported record revenues in three of its four main revenue streams: ticket sales ($185.4 million), sponsorships ($122.5 million) and corporate hospitality ($71 million). The fourth revenue stream, media rights ($142.9 million), was just under last year’s record. The vast majority of that money comes directly from the US Open.
“(2023) has been extraordinary for us,” USTA CEO Lew Sherr said last week. “It’s been record-breaking in many ways, in almost every way. We’ve had the highest number of fans in person that we’ve ever experienced. We’ve had the highest number of broadcast viewers. We’ve had the highest digital engagement. We absolutely expect that trend to continue.”
Overall, the USTA reported record revenue of $580.7 million in 2023. The US Open, where Novak Djokovic and Coco Gauff won singles titles, brought in $514.1 million, nearly 89% of the organization’s total revenue. The event had costs of $259.2 million, which translates to an operating profit of about $254.9 million. That money is used to fund many of the nonprofit governing body’s other annual programs, including supporting tennis in the community, developing high-performance athletes and lower-level national tournaments. (USTA executives were unavailable for comment ahead of this story.)
For the USTA, it’s a return to normalcy after losing around $200 million on the 2020 US Open when it was held without fans due to the COVID-19 pandemic. In response, the organization cut 25% of its staff, liquidated up to $85 million worth of investments and opened a $150 million revolving credit facility to cover operational cash needs. Now, rising revenues have helped right-size the USTA’s business. The group ended 2022 with $360 million in cash reserves, largely bolstered by the sale of the ATP event in Cincinnati for $270 million, and has once again begun prioritizing its investments.
The governing body purchased $189.8 million worth of investments in 2023, more than double its second-highest annual total in at least 15 years. Much of that appears to come from a $100 million pool the USTA board has earmarked for investment, with the intention of using the proceeds to repay Series D debt when it matures in June 2033. The board-approved investment policy, which was not included in the 2022 financial statements, aims for “at least 5% nominal annual returns,” the filing said.
Overall, the value of USTA’s investments increased from $162.2 million at the end of 2022 to $368.3 million at the end of 2023. The portfolio’s return decreased from a loss of $12 million in 2022 to $28.4 million in 2023.
The 2023 financial report also includes updates on some recent USTA-related transactions. In February 2023, the group sold its headquarters in White Plains, NY, for $7.7 million. It also reported a $375,000 loss on its equity investment in Trident8, the group that organizes the Roger Federer-backed Laver Cup. The USTA paid a total of $6 million in 2016 and 2017 for a 20 percent minority stake in the group. That investment now has a net book value of $6.1 million, according to the filing.
With support from Brendan Coffey.
