ATP Tour Sued by Tournaments, Claiming Antitrust Violations

Apr 27, 2007

The ATP Tour Inc., the governing body of the men’s professional tennis circuit, has been sued by the organizers of two tournaments — the Hamburg Masters Series and the Monte Carlo Masters Series.
 
Both tournaments claim the ATP, which plans to implement a so-called “Brave New World” restructuring plan in 2009, has violated U.S. antitrust laws by downgrading these tournaments, thus causing “irreparably damage” to their status.
 
The lawsuits, both filed in U.S. District Court in Wilmington, Delaware, the corporate home of ATP, ask a judge to stop the tour from stripping Hamburg and Monte Carlo of their Masters status, which would make it harder for the tournaments to attract top players.
 
They allege the plan will violate antitrust laws because it will eliminate the ability to compete in drawing significant numbers of top-tier players. They claim the decrease in status will also decrease incentives, such as slashing prize money and halving the ranking points available.
 
The Monte Carlo lawsuit also alleges that the ATP has conspired to restrain competition and these steps will harm:
 
• the players’ ability to compete in the tournaments of their choosing;
 
• the consumers by reducing the number of prestigious top-tier professional men’s tennis tournaments;
 
• the sponsors by decreasing the number of premium tournaments available for sponsorship or broadcasting; and
 
• the organizers by limiting the number of high-profile tournaments.
 
“The ATP has artificially taken control of the supply of men’s professional tennis players and of men’s professional tennis tournaments,” the Hamburg organizers said. “It has done so to establish a favored class of tournaments, in which the ATP has a significant proprietary interest, while relegating all of the ATP’s other member tournaments to a disfavored status.”
 
The plan, being pushed through by the ATP’s Chairman Etienne de Villiers, was created to restructure the men’s calendar in order to “reduce injuries and ensure top players take part in the most prestigious events.” The Hamburg tournament and the Monte Carlo tournament both take place in the weeks before the French Open.
 
The Masters series is a level below the Grand Slams, such as Wimbledon and the U.S. Open. According to the Hamburg suit, the 2009 calendar would create three tiers of ATP tournaments: The Masters Cup and Masters Series 1000, Masters Series 500 and the ATP 500. The Hamburg Masters Series and the Monte Carlo Masters Series would be relegated as “minor leagues,” which they claim will cause them to be unable to attract elite players.
 
The plan has sparked controversy, causing some critics to voice their strong discontent about the ATP’s management at the recent Miami Masters Tournament.
Madame de Massy, the President of the Tournament Committee said, “We are asking the Court in the US to declare this plan illegal and are calling upon the ATP’s management to listen to the message that the tennis world is sending: stop this plan before it causes real damage to tennis.”
 
This year marks the 101st annual edition of the Hamburg tournament. The Monte Carlo tournament was first held in 1897.
 


 

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