By Jordan R. Bass and Ryan M. Rodenberg
Anyone who wagered that gambling issues in professional tennis would subside following the enactment of more stringent anti-corruption measures on Jan. 1, 2009, has lost…big.
A federal lawsuit filed by five professional tennis players from Italy challenging their gambling-related suspensions enforced by the ATP World Tour, the governing body of men’s tennis globally, has morphed into a multi-pronged dispute with allegations of a cover-up. The Tennis Integrity Unit, formed in the wake of suspicious betting patterns found in a 2007 match involving then fourth-ranked Nikolay Davydenko of Russia, was developed by the major professional tennis organizations [each of the four Grand Slams, the International Tennis Federation, the WTA (the governing body of women’s tennis), and the ATP] to combat gambling and other nefarious conduct in professional tennis. However, questions about how deep the gambling problem is in professional tennis have persisted, with many such questions being asked in the context of the current litigation.
Suspended by the ATP over placing five bets averaging $26 apiece, Potito Starace is one of five Italian tennis players who sued the ATP on July 13, 2009, for hiding documents that he and his compatriots say show they were not alone in their gambling activities. Couched as a breach of fiduciary duty claim, the plaintiffs allege that the ATP targeted them “as low-ranked, less prominent professional tennis players…in order to avoid negatively impacting its revenue and reputation.” The case was initially filed in U.S. District Court for the Southern District of Florida but has subsequently been moved to the Middle District of Florida in Jacksonville, close to the ATP headquarters in Ponte Vedra Beach.
In a New York Times article by Joe Drape that ran on Nov. 10, 2010, the lawyer for the five players claims the ATP went after “low-hanging fruit” and has knowledge that top-ranked players are actively gambling on tennis, even maintaining accounts in their own name. The five suspended players claim they were not aware wagers of low amounts violated the ATP gambling policies. The players also allege the ATP is abusing court rules that allow certain documents to be labeled as “professional eyes only.” Under such a confidentiality order, attorneys are only allowed to talk about the document amongst each other and cannot disclose the information in the documents to their clients. Among the 18 documents that are in the latest reclassification request are depositions from high-ranking ATP officials and the head of the aforementioned Tennis Integrity Unit, Jeff Rees. Rees and Ben Gunn previously co-authored a report indicating “suspicious activity” in at least 45 matches during a five-year period. The report titled “Environmental Review of Integrity in Professional Tennis” found a number of threats to the integrity of professional tennis, including: (i) corrupt betting-related practice by players and others; (ii) breaches of certain rules regarding tanking; and (iii) the use of inside information for gambling.
The new accusations in the Italian players’ lawsuit are the latest in a litany of gambling-related issues in professional tennis. Ted Forstmann, chairman of IMG Worldwide, a leading sports property owner and agency, acknowledged gambling on the 2007 French Open final between Roger Federer and Rafael Nadal, both IMG clients. Forstmann bet $40,000 on Federer (to win). The lawyer for the five Italian players, Robert Elgidely, claims the ATP used a double standard when they did not discipline Forstmann. The ATP responded by saying that the cases are not comparable.
Additionally, a Los Angeles printing company seeking damages for unfulfilled business promises is suing Forstmann. Embedded within the suit is an allegation that Forstmann received “inside information” from Federer before placing wagers. Sports Illustrated columnist Jon Wertheim called Forstmann’s decision to gamble on Federer’s matches an “alarming absence of judgment.” Wertheim also wrote Federer’s name even being mentioned in the gambling context is “disgraceful.” AOL Fanhouse columnist Greg Couch mocked the ATP for giving Forstmann what Couch considered a muted warning to stop his gambling activities.
The gambling accusations in the case brought by the Italian players against the ATP have also led to an awkward relationship between the ATP and broadcast partner ESPN. The sports media giant recently petitioned the judge to intervene in the Italian players’ case and unseal the documents that potentially show star players were gambling on ATP matches. ESPN is scheduled to broadcast over 550 hours of professional tennis in 2011 and recently acquired broadcast rights to two of the ATP’s top tournaments in Miami and Palm Springs. In support of its motion, ESPN claims that any gambling among professional tennis players is a matter of public concern. The ATP responded by positing that they have a duty to protect the privacy of their players, especially those who were not gambling. A ruling on ESPN’s motion is imminent.
As of Jan. 20, 2011, Judge Timothy J. Corrigan had not issued a decision on the ATP’s pending motion to dismiss the case. The trial was originally scheduled to start on Feb. 7, but Dan Kaplan of the Sports Business Journal recently noted that the start date has been postponed. The case number is 3:09-cv-1155-J-32MCR.
Jordan R. Bass is a doctoral student at Florida State University where he teaches sport management. Ryan M. Rodenberg is an assistant professor at Florida State University where he teaches sports law. © Jordan R. Bass and Ryan M. Rodenberg 2011.
