Women's tennis hit by sponsor's strategy change

[djarvik]

Source:
http://online.wsj.com/article/SB1000142 ... lenews_wsj

What are your thoughts on this one?



LONDON—Sony Ericsson said a change in strategy was behind a decision to drop its title sponsorship of the WTA Tour as part of a new, reduced deal with the Women's Tennis Assocation.

The mobile handset maker, which made a net loss last year of €836 million ($1.14 billion), will remain the WTA Tour's lead financial backer until 2012 but will remove its brand from the tour's name as part of a new agreement announced yesterday.

The company will also drop its sponsorship of the season-ending championships, which will be held in Doha, Qatar for the final time this year, before moving to Istanbul for three years.

Although no financial details of the contract were disclosed, the new terms represent a significant reduction on Sony Ericsson's initial six-year, $88 million commitment—a record for women's sport—which expires at the end of the year, according to a person familiar with the matter.

"The net profitability is not too far off the existing one," Stacey Allaster, chief executive of the WTA Tour, said.

Ms. Allaster said that the WTA Tour will not seek a new title sponsor and that Sony Ericsson will remain the tour's leading partner, although the organisation can recoup some of the lost income by selling the naming rights to the season-ending tournament.

The new agreement continues the trend of sports organisations struggling to retain title sponsors during the downturn. The women's tour is now in line with the men's ATP Tour, which has not had a title sponsor since 2008. Mexican brewer Corona is the tour's main global sponsor.

Aldo Liguori, head of global communications at Sony Ericsson, said the scaled-down sponsorship deal was reflective of tougher economic conditions and a change in direction from increasing brand awareness to pushing the firm's global digital branding.

"We are a different company to when we were at the beginning of the sponsorship and obviously our objectives have also changed," Mr. Liguori said.

The company, which reported a net loss of €167m for the fourth quarter of 2009 on a 40% drop in sales, dropped its headline sponsorship of summer music event Ibiza Rocks in January 2009 after four years.

As part of the WTA deal, Sony Ericsson will retain prime net signage at the Tour's 53 tournaments and its "significant" television and digital media rights.

Mr. Liguori said Sony Ericsson would continue with its sponsorship of the co-hosted WTA/ATP Miami Open. The company also sponsors world Maria Sharapova.

[fedfan]

I really think the WTA is set for a big big fall in the next few years unless something drastic changes. Marketing does not seem to be their problem, it is the product that has been on the wane.

At the turn of the century womens tennis had so much going for it but the ATP has really left it miles behind since then.

[djarvik]

What happens (hypothetically) if WTA has no sponsor? ....I mean do they like Cancel the tour?

Just imagine for a second that WTA is canceled. All the little girls wanting to be a tennis star crying....

[emate007]

Nah, nothing that drastic... Individual tournaments don't get any money from the WTA directly (as far as I know), it's all through the sponsor(s) of that particular tournament. So Sony dropping out doesn't affect Wimbledon (ITF) OR Indian Wells (WTA) prize money or anything like that. Only tournies with Sony as the main source of funds will be feeling the immediate pain.
Besides, there are still so many VERY lucrative licensing deals in place with TV networks around the world, there will always be women's tennis. Just might be less money in WTA's bank for a while.

[djarvik]

right.

Maybe the lack of funding is a good thing. Maybe more young girls will pay attention to their tennis style. Me thinks that the "flashier" WS players will be rewarded with more TV time.

I really think it's both, the product and marketing. The product is out there, not a lot of it....but its there. There a few young and old players that have "that" tennis that was so successful earlier. Yet they tent to focus on Safina (well not this year) and the better looking ones. Good looking girls are great, but the ones that make you forget how ugly they are by playing superb tennis is the "right" product.

[fedfan]

Where has all the bitchiness gone, I used to love it when you knew they all hated each other a la Hingis v Williams. They're all too friendly nowadays, ladies bring on the catfighting.

[djarvik]

They could learn from our forum

[fedfan]

With all the short lived retirements lately I think they have.