The Coronavirus (COVID-19) pandemic has spread to many countries across the world, infecting some ... [+]
Topline: The All England Lawn Tennis Association, which organizes the Wimbledon tennis tournament, looks set to recoup almost half of its losses from cancelling the event thanks to the $2 million pandemic insurance it has taken out every year for the last 17 years, Action Network reports.
- Wimbledon was set to run from June 29 to July 12 this year, but was cancelled for the first time since World War Two, because of the coronavirus pandemic.
- But according to Action Network sports business reporter Darren Rovell, the organizers are set to receive a $141 million payout thanks to the coronavirus pandemic insurance policy it has paid a total of $34 million for, over the last 17 years.
- The insurance policy was reported by The Times in March, before the event was cancelled.
- The AELTC has not confirmed the figures, but told Rovell that the club has “always sought to buy the optimum insurance coverage available.”
- Forbes has contacted the AELTC for comment.
Crucial comment: Ahead of the cancellation, German Tennis Federation Vice President Dick Horsdorff, told Sky Sports in Germany at the end of March: “Wimbledon was probably - as the only Grand Slam tournament many years ago predictive enough to insure itself against a worldwide pandemic, so that the financial damage should be minimized there.”
Big number: Wimbledon, which draws some of the world’s biggest tennis stars, celebrities and tennis fans to London’s SW19 each year, was expected to generate $310 million in revenue this year from ticket sales, broadcasting rights, sponsorships and more, while it has a $42 million prize fund.
Tangent: Most sports businesses are unlikely to have taken out such a policy, but could be covered by a clause called “force majeure”, or “superior force” which could cover unexpected acts, Action Network reported.
