Tennis grapples with rising costs

Press, 18 June 1982, Page 15

Tennis grapples with rising costs

Securing sufficient funds to keep tennis bowling along merrily is a task which becomes increasingly harder for the New Zealand Lawn Tennis Association. Although it has had a windfall from Davis Cup ties, its budget for the year ending next March illustrates just how difficult it is to keep income’s nose ahead of expenditure.

From a total inflow of $247,000. the association is budgeting for a net profit of only $3350. which, as it notes, is an extremely poor return on the funds available. According to the annual report, which is to be presented to the annual meeting in Wellington next month, a rise in the affiliation fee to $3.75 would serve "the best interests” of New Zealand tennis.

A national membership of about 56,000 will produce $210,000 with the new fee. The present affiliation fee of $3.10 represents a 55 per cent increase on the 1979 figure of $2, but that pales into insignificance compared with other price hikes. According to the report, internal air fares increased 117 per cent in the same period, a round world economy fare increased 87 per cent, the national office costs 65 per cent, postages 71 per

cent, and New Zealand's subscription to the International Tennis Federation 137 per cent. Some of the increases, it says, were also due to the falling rate of the New) Zealand dollar in relation to overseas currencies.

The projected net profit for 1982-83 represents an insignificant 6.2 per cent of the association's accumulated funds.

The association’s management committee believes that a net profit of at least $ll,OOO should be gained merely to keep pace with financial trends, but this would mean an even bigger jump in the affiliation fee.

As well as the substantial membership contribution, the N.Z.L.T.A. income allows for $25,000 from the B.P. Tennis Foundation, $BOOO from tournament levies, and $4OOO from interest. But the - drain on these funds is severe. Overseas tours cost the association $50,000, and that does not count the Federation Cup women’s teams’ event, which costs an additional $12,500, and the junior tour, which requires a similar amount. Other major items of expenditure are the coaching and junior development programme, $37,500, net administration costs, $42,000. and

the tournament circuit. $20,000. But what about the Davis Cup profits? The last two home ties, against Britain and Spain, provided a total of $41,157, and prize money of $25,000 came in from the away match in Korea. The Cup fund subsequently increased to $149,391, and last year it provided $37,500 towards the cost of overseas tours.

However, mindful of the old adage about rainy days, the association has salted away $40,000 of the cup profits in an Eastern Zone contingency fund.

The New Zealand, team has held its place in the top division of 16 teams since the inception of the non-zohal competition for the cup. But if it was to lose two consecutive ties in future years it would be back in the Eastern zone, and have to fight its way through qualifying rounds in a bid for promotion.

This would be ' a costly experierice, for the international sponsorship does not apply to the B grade teams. But the good news is that the Davis Cup involvement has been financially self-support-ing. and is now supplementing affiliation fee income. John Brooks