CVC Capital Partners, the ex-owner of Formula 1, will acquire a 20% stake in a commercial subsidiary of WTA. This is to help the tour expand its marketing and players as well as increase the prize money.
CVC was named a commercial partner by the WTA Tuesday after a $150 million investment. This would give CVC 20 percent of a new commercial subsidiary called WTA Ventures. This subsidiary will be responsible for generating revenue through the management of sponsorship sales and broadcasting rights.
“Hopefully this partnership will allow us to begin addressing that valley between the commercial rights that we are able to secure and the rights that the men are able to secure,” Steve Simon, the WTA’s chairman and chief executive, said in a telephone interview from Indian Wells, Calif., where the BNP Paribas Open is set to begin this week
Although prize money at Grand Slam events is the same for both men and women, the gap between men’s and woman’s prize money has increased in recent years. In 2022, the chasm was at its highest in 20 years. The men earned on average 70 percent more than women in the majors.
The ATP Finals, which are the season-ending championships for the men’s tour, was worth $14.75 Million last year. WTA Finals offered $5 million for the women’s equivalent. Iga Swiatek was the No. The 1 women’s singles player expressed disappointment at the disparity.
Due to the absence of tournaments in China, significant revenue has been lost by the WTA. The tour was a strong presence in China and had signed a 10-year lucrative deal to host the WTA Finals at Shenzhen. This event offered $14 million in prize money in its first year. Since the outbreak of coronavirus in 2020, most professional sporting events in China have been canceled. The WTA also suspended all Chinese tournaments in 2021.
CVC’s investment will enable the tour to invest more in marketing women’s sports and in commissioning or producing media programming that will increase the profile of players and tournaments.
It will be interesting to see if the WTA and ATP ever merge.
This all comes with the expansion of women’s sports and the rise of alternative sports leagues. Along with the pressure to increase payouts.
