British tennis facing £30m reduction in revenue after COVID-19 pandemic wipes out major events such as Wimbledon and Queen’s… resulting in 40% loss of LTA income
- The LTA’s loss of income will see an ongoing programme of cost cutting
- The AELTC is finalising its insurance claim for Wimbledon’s cancellation in 2020
- There is hope that its usual £40m payout to the LTA will suffer just a minor hit
- Wimbledon and Queen’s are looking at every option for going ahead next year
British tennis is looking at a reduction of £30million in revenue for this year after the Covid crisis wiped out its major events.
The 40 per cent loss in Lawn Tennis Association income will see an ongoing programme of cost cutting, with a keen eye being kept on how much of the annual surplus is salvaged from this year’s Wimbledon.
The All England Club is in the process of finalising its insurance claim for the cancellation of this year’s Championships. The hope is that its yearly payout to the LTA – which is normally in the region of £40 million – will only suffer a minor hit.
British tennis is facing a reduction in revenue of £30m after a year of cancelled events
There is already concern about next summer, which is why the LTA have taken out a £15 million overdraft facility against their financial reserves.
At present events such as Wimbledon – and the LTA-run Fever Tree Championships at Queen’s – are working on every scenario, from going ahead with no fans present to a full house.
The insurance policy for SW19 will not be repeatable for 2021, so the permitting of crowds will be of critical importance.
Wimbledon are looking at every scenario in order to make sure next year’s event goes ahead
‘Given the significant range in financial implications within these scenarios, it is our responsibility to plan very carefully and continue to take a prudent approach,’ said LTA Chief Executive Scott Lloyd.
‘We also have to bear in mind that whatever form the events go ahead in, it is likely the economic outlook will remain difficult and the market for sponsorship and hospitality will remain depressed for a number of years.’
While a small number of employees have been furloughed, there was no mention of redundancies among the LTA’s sizeable workforce, which numbers nearly 300 and is responsible for annual salary costs just short of £20million.
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