MRS. LETICIA JAMES, WHY THE USTA'S 501(C)(6) STATUS MUST BE REVOKED. By Javier Palenque

The U.S. Tennis Association (USTA) holds a 501(c)(6) non-profit status, which allows it to operate without paying taxes on its revenue, under the premise that it promotes tennis and benefits the broader community. This designation intends to allow organizations like the USTA to focus on advancing a sport or profession, contributing to the public good, and supporting communities, particularly children and underserved populations.

However, the reality of the USTA's operations shows that this privilege is being grossly misused. Instead of functioning as a community-driven, non-profit organization, the USTA has increasingly behaved like a for-profit entity—generating millions of dollars while failing to deliver meaningful support to the communities it claims to serve.

It is time to revoke the USTA’s 501(c)(6) status, as it has become clear that this designation is being exploited to benefit a few at the expense of many while leaving children, local tennis programs, and broader public outreach untouched by its supposed non-profit mission. Of course, if one reads their PR, it claims it helps tennis everywhere, which is demonstrably false.

A Non-Profit in Name Only

When granted a 501(c)(6) status, an organization is expected to operate to advance a common cause or industry, not individual profits. The USTA is expected to use its resources to grow the game of tennis, make it accessible to people from all walks of life, and foster opportunities for young athletes. However, the USTA's behavior reveals a stark contrast to this ideal.

Instead of pouring its vast revenues into local tennis programs, affordable court access, and community outreach, the USTA has funneled its earnings into high-profile events like the U.S. Open, the failing Laver Cup, etc. These events are operated like lucrative business ventures, complete with exclusive corporate sponsorships, multi-million-dollar broadcasting deals, and lavish perks for executives who do nothing for the sport. Yet, despite this obvious for-profit mentality, the organization continues to hold on to its tax-exempt status, under the direct supervision of a carefully selected board that promotes this way of doing business and failing the sport.

The money is not going where it should: to the kids, communities, and grassroots initiatives that desperately need investment.

A Simple Example: The Local Tennis Court

Imagine a small, struggling community with just a few public tennis courts ( now being taken over by pickleball). These courts are cracked, poorly maintained, and unplayable or empty much of the time. Local kids who show an interest in tennis have no programs to join, no coaches to guide them, and no opportunity to improve their skills.

Meanwhile, the USTA, with its millions in revenue ($580M -2023), sits comfortably in its headquarters, boasting about its commitment to growing the game. Yet, those funds are not being used to repair the courts or fund youth programs in that community.

Instead, the USTA focuses its attention on making the U.S. Open bigger and more expensive for people who do not play tennis, Wall Street Bankers, with top executives enjoying hefty salaries and luxurious perks. The kids in that community are left with nothing—no programs, no support, and no opportunity to learn, play, or become fans.

 This is the crux of the problem. While the USTA pretends to be a non-profit advancing the sport, in reality, it acts like a corporate giant, serving itself and neglecting the very people it claims to support. This is why the nonprofit designation must be revoked.

The Embarrassment of Inaction

Allowing the USTA to continue operating under its 501(c)(6) status is not just a failure of oversight—it is an embarrassment. It sends a message that an organization can exploit the non-profit system, hoard its earnings, and funnel resources into for-profit-style ventures without any consequences. Meanwhile, countless kids and communities are left behind, denied access to the very sport the USTA is supposed to promote.

The USTA's actions show that it has strayed far from its mission, and by continuing to provide it with non-profit status, the government is complicit in this deception. Mrs. Leticia James, you need to make sure that the laws of NY and the land apply to the USTA, and you revoke the nonprofit designation after a careful audit of the financials is done. I also want all board members banned from being board members anywhere in NY as their actions are failing any fiduciary responsibility they promised to honor and respect.

Conclusion: A Call for Accountability

The USTA's 501(c)(6) status must be revoked, and it must be held accountable for operating more like a for-profit business than a non-profit organization. The resources it generates should be used to serve communities, kids, and underserved populations, not to enrich executives and grow its coffers.

It is time for the government to recognize this failure and act. Revoking the USTA's tax-exempt status would not only restore fairness to the system but would also signal that organizations exploiting their non-profit designations in NY will no longer be allowed to operate unchecked. Allowing the USTA to continue this charade is an insult to the ideals of community service and an embarrassment to the nation.

Mrs. James, you did recently something similar with the NRA, also a not-for-profit. So, the way to end this charade is fresh in your mind.

I want the government to take matters like these seriously or the same behavior repeats itself over and over again, with other causes.

I say NO to ineptitude and YES to growing the game.

I can be reached at jpalenque@yahoo.com