About this video

• Video Title: Dominic Thiem: Competing with Federer, Nadal & Djokovic; The Makings of A Grand Slam Champion
• Channel: Business of Sport
• Speakers: Dominic Thiem
• Duration: 01:12:17

Overview

This video features an interview with Dominic Thiem, a Grand Slam champion, discussing his transition to life after professional tennis, his career achievements, financial aspects of being a top athlete, the structure of the tennis world, and his future endeavors.

Key takeaways

• Life After Tennis: Thiem emphasizes the importance of staying busy and setting new goals outside of tennis to manage the transition after retirement, having planned his exit over several months.
• Financial Management: He highlights the need for financial advisors from a young age, especially after experiencing an injury that made him consider the end of his career. The complexity of sponsorships, taxes, and tournament earnings is discussed.
• Grand Slam Success: Thiem reflects on the significance of winning the US Open in 2020, noting that while it was a major achievement, the commercial impact was somewhat subdued due to the COVID-19 pandemic. He also describes the immense mental challenge of playing against top players like Rafael Nadal in Grand Slam finals.
• Tennis Industry Structure: Discussions cover the revenue split in Grand Slams, the formation of player associations, the varying quality of tournaments, and the high costs associated with pursuing a professional tennis career, making it increasingly a sport for those with financial backing.
• Athlete Development and Brand: Thiem stresses the importance of building a personal brand early on and how social media can be a valuable tool for athletes. He also touches upon the role of coaches as sources of energy and trust, rather than purely technical guidance, at the elite level.
• Future Ventures: Post-retirement, Thiem is focused on growing his company in renewable energy, developing his tennis academy, nurturing partner relationships, and investing in impactful startups.

Becoming a professional tennis player is extremely expensive. From ages 13 to 18 (or until they start earning money), players can incur costs of $80,000 to $100,000 per year, totaling close to a million dollars by the time they are ready to earn.

The transcript does not specify a particular rank at which players break even or guarantee sponsorships. However, it implies that success at higher levels, such as qualifying for the ATP Finals (top 8 players), significantly impacts earnings from sponsorships and prize money. Players ranked outside the top 100, like those around the 150th position, earn much less and often rely solely on prize money after deducting expenses for coaches and travel. Sponsorships appear to become more substantial as players climb the rankings and achieve significant results like reaching Grand Slam finals.

The transcript doesn't provide specific details on what rank a player needs to be to "break even" in terms of income versus expenses. However, it does offer insights into the financial realities for players at different levels:

• Lower-ranked players (e.g., around 150th in the world): They might earn around $180,000 in six months, but after paying their physio and coach, they are left with a very small amount. Sustaining a career at this level is difficult financially.
• Players around the top 100: The transcript implies that prize money from tournaments and appearance fees become more relevant at this stage.
• Top players (e.g., qualifying for ATP Finals, top 8): For these players, retainers from sponsors are substantial. However, even for them, their income can decrease significantly if their ranking drops due to injury or poor performance.
• Sponsorships: Sponsorship deals, like those with Adidas, involve a basic retainer fee, but this is often contingent on playing a certain number of tournaments. Bonuses are awarded for winning tournaments of various categories (250, 500, 1000, Grand Slams).
• Grand Slam Earnings: While qualifying for a Grand Slam like Wimbledon can earn a player around $65,000-$70,000, after deducting costs for coaches, physios, and travel, the player takes home significantly less, potentially around 60% less. Taxes also play a significant role.

The general consensus from the transcript is that consistent high performance and a strong ranking are crucial for attracting significant sponsorships and earning enough to offset the high costs of maintaining a professional tennis career.

The transcript discusses the ATP Players Association's advocacy for a better distribution of revenue within tennis, aiming for greater sustainability for players. It highlights that currently, Grand Slams allocate about 17% of their total revenue to players, which is significantly lower than in other sports where players might receive 40-50% of total revenue.

Dominic Thiem confirms that discussions about this issue were a "constant topic" during players' meetings, typically held before the Australian Open and US Open. He agrees that tennis, despite its global reach and large fanbase, supports a disproportionately small number of players financially. Players ranked lower, even those exceptionally skilled (like 150th or 200th in the world), struggle to make a sustainable living from the sport due to limited tournament spots and the high costs of travel, coaching, and other expenses.

The transcript draws a parallel with football, where even a player ranked 150th might be a Premier League player earning millions, a stark contrast to the financial reality for tennis players at similar ranks. The establishment of organizations like the ATP Players Association is seen as a crucial effort to ensure more equitable financial representation and create more sustainable careers for a broader range of players, not just those at the very top.