PINK SLIPS OR BONUSES FOR USTA EXECUTIVES? By Javier Palenque

How is it that a similar set of results can lead two different kinds of people to think the same group of people deserves a pink slip or a bonus? I decided to write today's article for enlightenment for the tennis community in fifteen minutes. I always tell the employees if they can’t quickly communicate an issue, it means they have not thought about it long enough. The people at the USTA have been ordered not to read enlightenment and to continue running tennis without reading any critics or noticing the changes in the country and to continue promoting falsehoods that they cannot validate, like participation. So, this article is for intelligent individuals who like to see a smart perspective on issues regarding the most beautiful game in the world, tennis.

The two people in question are of course the leader of the best-funded sport not-for-profit in the world, USTA’s CEO, and yours truly, a tennis activist dad who knows the world and tennis inside out.

The first difference we need to establish is that the CEO cares about the show, and I care about the game. So, from the very beginning, we know we will have opposing points of view. To make this article short and entertaining for the goldfish's attention span of people, let us limit it to three topics.

1)      The results of the US Open

2)      The culture of the USTA

3)      The strategy and vision of the CEO for the USTA.

THE RESULTS OF THE US OPEN / USTA 2022-2023

The CEO believes that since the numbers look good, bonuses should be given. So, I am sure that everyone in the inner circle will get a bonus, including the CEO himself.

I on the other hand feel and see the problem differently, first I think that the incentives are for the wrong results, selling more honey deuces, more tickets or more partners is completely irrelevant to the mission of the nonprofit. So, I would not have incentives unless the employees’ actions grow the game. Many of the executives make way more than market salaries and their positions are mostly administrative and the sales are mostly contractual, so they do nothing for more sales. In my opinion, if you don’t grow the game your position should be temporary, and that way we save costs and have more money for the game. Remember the show is only two weeks out of fifty-two, and most of the vendors are repetitive if not 90%, it is all subcontracted anyhow so I do not think they deserve bonuses. If one looks at the actual finances the profit on sales is very low, which means that they are simply too FAT, so no bonuses. The USTA makes a pathetic 6% return on $500M. You would be fired in most businesses for such poor results.

THE CULTURE OF THE USTA

The CEO walks around stating in interviews that it is the mission that drove him to the organization, yet his name does not appear in the list of donors to the sport. He has on his own decided to have fewer sponsors and price the event so fewer people can afford it. By doing such foolish things, he has positioned the market in a selective quadrant of fewer people who do not play the sport. So his ingredients are high prices, exclusivity, premium seating, and the added benefit of being seen. This pretty much summarizes why anyone would buy a Rolex.

On the other hand, I completely disagree with that strategy because it goes against the sport, the times, the economics of the country, and the future. I think more people should feel that the game is accessible and try it and love it, not the other way around. I would also position the sport so it is aspirational as a sport, No I don’t want it exclusive, I want it accessible, not for fewer people, but for the most people. If one looks at the finances alone of the USTA only 30% comes from ticket sales, this means that for every dollar they receive only $0.30 is from people going to watch the show. In case this is not clear $0.70 of that same dollar is corporate revenue. This means not tennis people. This dichotomy of course gives the employees the absolut incorrect impression that what they do is great for the sport, NO it is not, it is great for the event. So, these poorly led employees act and believe they are doing great when the opposite is true. The CEO solidifies and incentivizes a culture that is the sport's biggest enemy and yet he thinks it's OK and so does the nonthinking useless board of the USTA.

THE STRATEGY AND VISION OF THE CEO FOR THE USTA

The strategy the CEO follows is like that of a triangle, where at the top is the CEO and the US Open. He believes that as long as the US Open is good, tennis is good.

I on the other hand believe the exact opposite, I believe that the right image is a cylinder where getting new customers is a priority and community tennis follows and then the right strategy for the sections and at the end would be the US Open and me. Why at the end? Because the US Open runs, it does not need much help and it costs a lot, what needs help is the future and of course the jobs for coaches and our youth, which is at stake, not the US Open.

So as you can see, while the CEO is proud of selling tickets and having higher revenues that fewer people can afford, I think the exact opposite, why? Because the US Open is not tennis and of the funds the US Open receives tennis itself almost sees none of it, so the revenues of the US Open matter very little.

As you can see, the CEO will be handing out bonuses, people will celebrate and all go home thinking how good they are for tennis. I would hand out pink slips, maybe pay for the go-away party if it is tomorrow, and focus on what matters and what is at stake, which is growing the game.

How two people can read a few simple words and act in opposite directions? you tell me, who is with me? and who is with the good Ol' boys, who are neither good nor longer boys?

In my mind, growing the game are words that do not mean bonuses, more payroll, high salaries, or useless player development. It means growing the game, more kids playing, more parents investing, more coaches coaching, and more courts being used.

Mr. CEO, you deserve a pink slip for failing to do what you were hired to do which is to grow the game, of course, you disagree, because your bonus is to grow sales, then let me ask you why do you hide participation numbers by age, gender, and zip code? because you don't understand the game and neither does your board, otherwise they would incentivize growing the game not drink sales, clean bathrooms, and more expensive boxes. Please accept your pink slip, return your bonus and maybe give to the mission you claim to care for, but do not seem to fund I wonder why? I expect 14 checks for the 14 years employed.

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

I can be reached at jpalenque@yahoo.com