Many people wonder how Grand slams get fund for the prize money given to the eventual champions in each category played. For example, let us take a look at the 4 major Grand Slams and the money they offer based on current statistics.
- Australian Open pooled around 37 million dollars (USD) in prize money in 2017.
- French Open offered about 39.2 million dollars (USD) in prize money in 2017
- Wimbledon too pooled a whopping 79 million dollars in prize money in 2017
- US Open Championship too now is the most lucrative Grand slam with 50.4 million dollars (USD) in 2017.
Here is a Breakdown of a Grand slam’s (Example, Australian open) sharing formula:
- Singles winners for both men and women gets $2.79m each
- Runners up get 1.42m each
- Semi-finalist losers gets $670,000 each
- Quarter-finalist losers gets $335,000 each
- 4th Round losers gets $165,000 each
- 3rd Round losers gets $95,000 each
- 2nd Round losers gets $60,000 each
- 1st Round losers gets $30,000 each
Occasionally, the prize money is increased to make the championship look more attractive as well as more competitive. So, the million dollar question remains: where does all the money come from?
You can find information on players that have proved successful on the court here:
(The most successful women on the court)
The Inside Story
Tennis Grand Slams are major sports events and has an approximate 100 million audience worldwide. And just like in other sports, they are not short of revenue because of the following four reasons:
- Sponsors- All grand slams are supported by major sponsors, and these sponsors include but not limited to major brands in the commercial industry today. Examples of such sponsors are KIA motors, ANZ, Jacob’s creek, Rolex, Accor Hotels, MasterCard, Discover Melbourne, Optus, Emirates, Disney, CPA, Yonex, Wilson, Peugeot, and so on.
Usually, there are some form of agreement between these companies and the organizers of these Grand slams. It’s mutually beneficial in that while the companies give money to support the competition, they too get more publicity during the competition, and possibly an increased sale or patronage.
- Auctioning Broadcast Rights- This is another major source of income for the tournaments. For Example, the English premiership is a football league in England and according to reports, the 2017/2018 league season’s broadcast right was sold at an amazing 1 Billion Pounds. The same is true for Grand slams. Since majority of the audience will be watching at home, TV companies bid at different rates to air such competitions to the viewers at home. It happens that the highest bidder gets the contract.
- Advertisements- During the competitions, various brands and products approach these organizers so that the station that gets the right to broadcast the Grand slams to viewers at home can advertise their products or companies during the commercial breaks. Also, there are banners and displays of top seed players; they will also eye appearing in such adverts.
- Merchandises- Although the income from this area isn’t as much as the others, still they contribute to the success of the events. Towel design companies for example, can offer to pour some cash in if their product is used during the events.
So there is actually more money than needed sometimes. The tournament’s Prize money and other expenses will be adequately catered for.