TENNIS ECONOMICS

At the end of August, a half-million tennis fans will pour into northeastern Queens, N.Y., for the U.S. Open--one of America’s biggest, and most profitable, sporting events.

A full two weeks of backhands and forehands, as well as its international status, gives the tennis classic more in common with the Olympics than with other American sporting landmarks like the Super Bowl or the Indianapolis 500.

The money-spinning competition generates an estimated $195 million, about 85% of the United States Tennis Association's (USTA) revenue for the year, the rest of which comes largely from membership dues. Across the Atlantic, the French Open brings in a little less--an estimated $175 million last year.

Half of the U.S. Open’s revenue comes from sponsorship deals and broadcasting rights, another $80 million from ticket sales, and the rest from other sources like concessions and merchandise.

Cutting into its profits are the $21 million in prize money the USTA doles out to the hundreds of players who participate in the Open--$1.5 million to the each of the winners in the singles tournament, and half a million to each of the winning teams in the doubles tournament.

Among the USTA’s other costs are a $13.4 million annual marketing bill, $2.4 million for insurance and $1.2 million worth of promotional items and gifts.

The Billie Jean King National Tennis Center is no backyard tennis court, either. Host to the U.S. Open since 1978, it is the world’s largest public tennis facility and costs $5.5 million a year to staff. In 1998, as part of an effort to keep the Open from moving to San Diego, a $254 million stadium was added with room for 23,000 fans (the old one had room for 18,000).

Arthur Ashe Stadium is now the world’s largest tennis-only venue.

The USTA leases the land for the Tennis Center from New York City. In addition to $400,000 a year in rent, the city gets one penny of every revenue dollar over $25 million (including money from broadcasting, sponsorship and concessions). That's about $2 million a year pocketed by New York--not counting the economic impact on the community of hosting the USTA’s signature event.