Menu
Leagues and Governing Bodies

ATP events retain Kessler in prize money fight

The ATP’s top tournaments have retained Jeffrey Kessler, perhaps the pre-eminent U.S. sports labor law attorney, to represent them as they decide whether to sue the circuit over recent prize money increases, three sources close to the tennis industry said last week.

The lawsuit that’s envisioned, one of the sources said, would challenge the foundation of the ATP and potentially rip it apart. The contention would be that when ATP President Chris Kermode cast the deciding vote for the disputed prize money increases late last year, that action ran afoul of U.S. antitrust law by dictating earnings outside of collective bargaining, this source said.

 
ATP President Chris Kermode’s (left) organization may see lawyer Jeffrey Kessler in court.
Photo by: GETTY IMAGES; AP IMAGES
Reached via email last week, Kermode said he did not know about the hiring of Kessler, whose firm, Winston & Strawn, is the top outside legal counsel to the NFL Players Association, based on billings.

Ironically, Kessler in this matter would find himself up against Proskauer, the outside counsel to the ATP and the NFL — just like he did four years ago in litigating against the NFL during that league’s lockout.
Kessler did not respond for comment.

The ATP’s nine top events, the 1000s as they are known, sent a strongly worded letter to Kermode last month warning of legal action for the vote of the ATP board to raise the events’ prize money 14 percent annually over four years. The ATP, like the WTA, is a hybrid of labor and management under one roof: The tournaments and players each get three board votes, with the tour president holding the seventh and potentially tie-breaking vote.

The two sides bickered for much of 2014 over the prize-money issue. The players wanted to see a 25 percent annual hike, with the tournaments offering an increase in the mid-single-digit percentages. The matter ultimately moved forward when Kermode cast his vote with the players in early December.

Since the inception of the modern ATP in 1990, its leaders have tried to avoid using that tie-breaking vote and have the other board members reach a consensus instead. Now, it is Kermode’s use of his vote to set the prize-money levels that may become the issue if the events proceed to litigation.

At the moment, it is unclear if that will occur. Former U.S. Open tournament director Jim Curley, who is advising the tournaments, did not respond for comment. Curley is believed to have been the one to recommend Kessler.

The tournaments also would have to overcome as an obstacle the argument that they agreed to the ATP structure. That was a winning argument when a German tournament sued the ATP trying to undo a board decision. A federal jury ruled in 2008 for the ATP that it was within its rights to vote to demote the event’s status.

It is also unclear whether all the affected tournaments are on board with the decision to hire Kessler, the sources said. Tennis is notorious for feuding factions, and that could be a concern if the events are not united.

The American events are believed to back the move, including the U.S. Tennis Association-owned Cincinnati tourney; the WME-IMG-owned Miami Open; and the BNP Paribas Open in Indian Wells, Calif., an event that is owned by billionaire Larry Ellison. WME-IMG and the U.S. Tennis Association declined to comment. A BNP Paribas Open executive did not respond for comment.

For Kessler, his involvement here does not mark the first time he has worked in tennis. He advised WTA players in 2008 on their prize-money discussions. Notably, he told SportsBusiness Journal at the time, “Is it fair that these players in non-team sports get a lower percentage of revenues than other sports? No. It is not fair at all.”

Now, he has been retained to represent the other side.

SBJ Morning Buzzcast: March 18, 2024

Sports Business Awards nominees unveiled; NWSL's historic opening weekend and takeaways from CFP deal

ESPN’s Jay Bilas, BTN’s Meghan McKeown, and a deep dive into AppleTV+’s The Dynasty

On this week’s Sports Media Podcast from the New York Post and Sports Business Journal, ESPN’s Jay Bilas talks all things NCAA. Big Ten Network’s Meghan McKeown shares her insight into the Caitlin Clark craze. The Boston Globe’s Chad Finn chats all things Bean Town. And SBJ’s Xavier Hunter drops in to share his findings on how the NWSL is making a social media push.

Learn more about your ad choices. Visit megaphone.fm/adchoices

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Journal/Issues/2015/01/26/Leagues-and-Governing-Bodies/ATP.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Journal/Issues/2015/01/26/Leagues-and-Governing-Bodies/ATP.aspx

CLOSE