The Australian Open's deal with Kia is the most lucrative of all Aussie sporting sponsorships.GETTY IMAGES
Tennis has become Australia's "commercial powerhouse sport" with the signing of a "record-breaking new sponsorship deal worth more than any other in Australian sporting history," according to John Stensholt of the AUSTRALIAN FINANCIAL REVIEW. The deal announced over the weekend with Korean car manufacturer Kia is worth at least A$85M ($68.8M) over five years to '23. It is more than the annual A$16M ($13M) the Australian Football League receives from its major partner, Toyota -- the previous biggest sponsorship on a yearly basis. To put that in context, "and thanks to hosting one of only four grand slam tennis tournaments each year," tennis will make more "annually next year" from its three big sponsorships -- about A$17M ($13.8M) from Kia, A$10M ($8.1M) with watch brand Rolex and about A$7M ($5.7M) with ANZ Banking Group -- "than it will from the last Open of its current domestic broadcasting rights deal with Seven West Media." The sponsorship deals, plus other extensions or new contracts in the future for domestic and int'l broadcasting rights, "could even mean the Australian Open soon vaults Wimbledon into second place among the four grand slams in terms of revenue, behind only the US Open." Tennis next year will also break through the A$100M ($81M) revenue barrier alone for sponsorship income, which in '17 accounted for about 27% of Tennis Australia's record A$320M ($259.1M) revenue. About A$300M of that "is derived from the Open and other lead-in tournaments" (AFR, 1/28).
