Most reports we generate are private only to the companies we work with, but this is a special case.
During my time at Microsoft I had the distinct pleasure of looking closely at the game of Tennis. It was a passion project for me. Not only was I knee deep in AI analytics before most people ever heard the name ChatGPT, but I am also a lifelong player. I lived in one of the elite tennis resorts in the world and met numerous professionals and elite players, and also raised and coached a daughter who went on to play D1 college tennis.
So I know a thing or two about the subject. something I did on my own time because it is a sport I loved. And during that time I developed some ideas about how the game could be revived, not only because of AI, but also with some very common sense reforms.
A Strategic Analysis for Increasing Brand Value and ROI in Professional Tennis
Sometimes the answers are simpler than people think, take the sport of tennis for instance. A sport that has been around for centuries, and is widely known as the healthiest sport a person can play, while having a long and fabled history of being played by kings and everyday people alike. So then, why is it struggling to succeed? Why are most top players unable to make a living wage? Why are audiences dwindling? And why are courts everywhere being taken over by a sport called PICKLEBALL?
No doubt there are many industry insiders and experts, as well as former top players, all wrestling with these questions. But I've studied the issue closely and am offering this report as a pro-bono gift to the sport I love.
The Bottom Line: Tennis faces an opportunity to dramatically increase its market share, player earnings, and global impact by making strategic, audience-focused changes to its format and presentation. This report outlines a clear path forward.
Tennis currently finds itself at a critical crossroads. Despite being a sport with centuries of history and global recognition, it faces significant challenges in the modern entertainment landscape:
U.S. Participation: Tennis vs. Pickleball (Millions of Players)
While tennis shows steady growth, pickleball's rapid rise presents both a challenge and an opportunity for tennis to evolve.
Data source: Tennis Industry Association, Sports & Fitness Industry Association reports
Key Statistics:
While tennis appears healthy at the top tier, with stars like Carlos Alcaraz earning approximately $45 million annually, the financial reality for most professional players is starkly different:
Average Annual Tennis Prize Money by Ranking (USD)
The steep drop-off in earnings below the top tiers demonstrates why reform is needed to create a more sustainable economic model for professional tennis.
Data source: ATP and WTA prize money reports
The Hard Truth:
While tennis has maintained steady growth, pickleball has experienced explosive expansion that demands attention:
Year-over-Year Growth Rates (%)
Pickleball has experienced explosive growth rates far exceeding tennis, highlighting the opportunity for tennis to adopt innovative formats.
Data source: Sports & Fitness Industry Association (SFIA)
Pickleball's Remarkable Trajectory:
What Makes Pickleball Appealing:
So why is this so complex? It doesn't have to be. Over the years equipment has gotten better, players have gotten more fit and talented. So as the world has gotten richer and more populated, why hasn't tennis kept up?
We live in an ADD world. The pace has moved forward. People need faster and higher stakes, that's all there is to it.
Average Match Duration Comparison (Minutes)
The proposed tennis format creates a more time-efficient experience while maintaining the sport's essential character.
Data source: ATP, WTA, USA Pickleball, and analyst estimates
Today's entertainment landscape is characterized by:
Tennis's traditional format increasingly conflicts with modern consumption preferences:
Tennis's fragmented governance structure creates significant challenges for effective monetization:
Current Tennis Industry Revenue Distribution
Players receive only 18% of industry revenue, compared to 40-50% in most major sports leagues, indicating a significant opportunity for reform.
Data source: Tennis Industry Association, Professional Tennis Players Association
Here's what you do.
Make sets go to 5 games instead of 6.
This seemingly simple change would create multiple benefits:
Allow only one 2nd serve per game, player gets to call when they use it. Automatic 2nd serve on points that could decide a set or match.
This innovation would:
Allow more active coaching on the court, but have limits so it doesn't get annoying. People like the drama and strategy of coaching, and they like the coaches especially when they are well known personalities. It's an extra draw.
Benefits include:
Implement AI. As a former Microsoft exec I saw directly what AI can do for sports with live stats and strategy insights. Use it even at college and junior levels.
AI applications would enhance tennis through:
Allow more cheering. Yes tennis is a more sophisticated sport, and to a degree that is something we like about it, but don't be yelling at the audience. Players of all sports can handle some noise, have they ever seen what juniors have to deal with?
Creating a more interactive atmosphere would:
Unified Media Rights and Distribution
Tiered Tournament Structure
Player Compensation Reform
Youth Engagement Program
Implementing the recommended changes could significantly increase tennis's commercial potential:
Projected Tennis Industry Revenue Under Proposed Reforms (Billions USD)
Implementing the proposed reforms could more than double industry revenue within 5 years, creating greater value for all stakeholders.
Data source: Industry financial analysis
Revenue StreamCurrent (2024)Projected (2029)GrowthMedia Rights$2.1B$4.8B129%Sponsorship$1.6B$3.2B100%Tournament Attendance$1.2B$2.1B75%Merchandise$0.8B$1.9B138%Digital Content$0.3B$1.5B400%Total$6.0B$13.5B125%
The proposed reforms would dramatically improve the financial situation for players across all ranking levels:
Ranking RangeCurrent Avg. Annual IncomeProjected Avg. Annual IncomeImprovementTop 10$5.2M$9.8M88%11-50$1.1M$2.6M136%51-100$325K$840K158%101-250$85K$310K265%251-500$26K$120K362%
The initial investment required to implement these changes would be approximately $250 million over three years, providing an exceptional ROI:
Tennis stands at a pivotal moment in its storied history. By embracing strategic changes that align with modern entertainment consumption patterns while preserving the sport's essential character, tennis can not only survive but thrive in the contemporary landscape.
The recommendations in this report provide a clear roadmap to:
Most importantly, these changes would ensure that tennis remains relevant and vibrant for future generations, building on its rich heritage while embracing the realities of today's entertainment marketplace.
Tennis doesn't need a complete reinvention – it needs a thoughtful refresh. By making these strategic adjustments, the sport we love can enter a new golden age of global popularity and commercial success.
About the Author
This report has been prepared as a pro bono contribution to the future of tennis, drawing on extensive industry analysis, consumer behavior research, and a deep understanding of sports entertainment economics.