USTA invests in The Tennis Channel to promote sport
The U.S. Tennis Association is making a multimillion-dollar investment in The Tennis Channel in hopes of promoting the sport, The Associated Press learned Sunday.
The deal, to be announced formally Monday, will give the USTA -- which runs the U.S. Open and other events -- a say in the cable network's future and could eventually lead to other deals between the two.
Neither the USTA nor The Tennis Channel would say exactly how much is being invested. Two people familiar with the deal said it involves less than $10 million, describing the financial terms to the AP on condition of anonymity because they're not being announced publicly.
The Tennis Channel went on the air in 2003 and is currently in about 10 million households. Joining with the USTA is the latest in a series of moves in 2006 to raise the channel's profile and expand its reach, including hosting an ATP Tour event and buying TV rights to a Grand Slam tournament -- the French Open -- for the first time.
The USTA is "going to be involved with virtually everything that goes on at The Tennis Channel," network chairman and CEO Ken Solomon said in a telephone interview Sunday.
"They understand we have aligned missions, which is to promote the growth of tennis in the United States, and we can do that in complementary fashions," he added.
It's the first investment of its kind for the USTA, which until now has limited such financial moves to tennis tournaments.
"This is an investment in the growth of the sport," said USTA chief executive Arlen Kantarian, who oversees the U.S. Open.
Solomon called the USTA's money "a tremendous vote of confidence for the Tennis Channel. It's the equivalent of having an independent company given a ... seal of approval by the organization that runs the business, at least in this country."
Solomon cautioned, though, that this deal won't necessarily lead to his channel getting U.S. Open cable TV rights, currently owned by the USA Network.
"Does this make us a shoo-in for the U.S. Open? I would say no," he said. "It creates huge opportunity on both sides, but it doesn't assure us any access to or the ability to get any rights."
Copyright 2006 by The Associated Press
