Tag: Tennis Industry Association

TIA Positively Spins the Value of Tennis Industry

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On March 22, the Tennis Industry Association (TIA) issued a press release titled, ” 2014 State of the Industry Values Tennis Economy at $5.55 Billion.” The emphasis was placed on $5.55 million.

There is a reason the TIA press release did not mention the amount of change in the value of the industry. A year ago TIA reported the tennis industry was valued at $5.4 billion in 2011. Between 2011 and 2013, the value of the tennis industry increased by $.15 billion, or 2.8%. Between 2011 and 2013, the CPI for all items increased by 3.2%.

The value of the industry did not keep up with the increase in inflation. In other words, the net value of the industry declined slightly over the past two years.

Tennis is an important part of our society, it is a small industry that employs workers in all states; however, the tennis industry is not a significant part of the U.S. economy.

Nominal GDP increased from $15.5 trillion in 2011 to $16.7 trillion in 2013, an increase of 8.2%. (The nominal GDP is used because the TIA data is not adjusted for inflation).

The value of the industry increased at a rate less than GDP output. In other words, the value of the tennis industry expanded at a rate lower than the overall economy, i.e. tennis is losing market share.

There are three possible reasons for the “stagnation” of the value of the industry.
• Over the past year, the sport attracted more “occasional players” than “frequent” players. While the total number of players may have increased, the newcomers didn’t spend as much as the industry core, the “frequent” player. Historically, the industry has a poor track record of converting “occasional players” to “frequent players.” For example, there were only 5.9 million frequent players in 1999. Today that number is about 5.4 million.
• There is a flaw in the methodology for the collection of the TIA data.
• The industry is growing; however, there are weaknesses.

The TIA has to publicly spin the data – that is what they are getting paid to do. Hopefully they are accompanying the spin with a dose of reality in board rooms and behind closed doors.

Where is the Tennis Industry Really Headed?

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Spin is essential in the sport of tennis, both on and off the court.

For the past two months, the Tennis Industry Association (TIA) has been releasing information from the most recent annual TIA/USTA industry study. Like most sectors of the economy, the tennis industry felt the pain of the Great Recession. Unfortunately, the recovery has closely resembled the bounce of a dead tennis ball on a cold day.

The tennis industry has been in a mature stage since the end of the short-lived 1975 tennis boom.  Given the tradition of the sport and its global appeal, it seems reasonable to expect participation in the sport grow at a rate equal to or slightly greater than changes in the population.

Between 1999 and 2012 the tennis population expanded at a slower rate than the overall population. This would infer that Initiatives to generate interest in the sport may have prevented a decline or slower rate of growth; however, they have clearly failed to “grow the game” at or above the rate of population growth.

The tennis industry closely follows the Pareto Principle. Frequent players, those who play 21 times a year or more, account for about 70% of total spending and 17% to 25% of all players. Since 1999, this segment of the tennis population has declined, a sign that long-term efforts to “grow the game” in this critical area have not been successful.

Regular/casual players are responsible for about 30% of the total spending. Since 1999 this group has made up 75% to 83% of total players. Initiatives to generate interest in regular/casual players have had a minimal impact on long-term net increases in participation.

The growth of the tennis industry, as measured by the TEII, has been about half that of Nominal Personal Consumption and GDP for the period 2003 to 2012. The volatility of the global economy has created a challenging environment for the sport’s manufacturers and service providers.

It seems so simple looking on from the outside. Industry leaders need to develop strategies to effectively fix the problem in four areas:

  1. Retain and increase the number of frequent players. This is the easy part – Frequent players already know the merits of tennis. They simply have to be given compelling reasons to keep doing what they love to do.
  2. Convert regular player into frequent players. Again, regular players have a passion for the game. Teaching professionals should create reasons to keep them engaged. Like the age-old bumper sticker said, “Think Globally, Act Locally.”
  3. Create enough excitement about the sport that casual players turn into regular players. The onus for making this happen lies with the tennis professionals.
  4. Strategically introduce players to the game.

For a full review of the latest TIA data, without the spin, read, “Where is the Tennis Industry Really Headed?“

College Tennis in Jeopardy?

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On the heels of a report by the United States Tennis Association (USTA) and the Tennis Industry Association (TIA), the Intercollegiate Tennis Association (ITA) released an update on the number of programs that have been dropped in college tennis.

The ITA report stated, “During the first decade of our research study (1970-1980), we have record of 6 programs being dropped. In the next decade (1981-1991), the rate of elimination increased ten-fold, with 60 known programs dropped. In the next decade (1992-2002), the rate of program elimination almost quadrupled, with 209 known programs dropped and more than 40% of these programs (92) dropped in the last three years of the decade. In addition, 175 programs were dropped over two decades (1981-2002), with precise years unknown. The trend of dropped programs appears to be continuing, with 120 programs known to have been dropped during the past eight years.”

College tennis is essential to the tennis industry. Many teaching professionals are former college players and a few even go on to play of the circuit. In many areas, college players coach in community and recreation programs and add to the quality of play in local tournaments during the offseason.

The ITA has provided a list of schools that have dropped programs, added them, and programs that are in jeopardy. It is UGLY!

On a positive note, the ITA is seeking advocates to speak out on behalf of college tennis. If you care about the sport then go to the ITA website and complete a form indicating your willingness to support their efforts.

http://www.itatennis.com/AboutITA/Advocacy.htm