LTA announces operating profit thanks to record surplus of Wimbledon

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LTA announces operating profit thanks to record surplus of Wimbledon

The Lawn Tennis Association has announced an operating profit of £8.7m and revenue of £77m for 2019 which marks a significant turnaround after three years of losses. In 2018, the LTA reported a loss of £6.3m.

Most of this turnaround is a reflection of the higher injection of money from Wimbledon, which posted a record surplus of £50.8m. According to The Guardian, Wimbledon had been running on a reduced surplus for the past few years due to the building of the roof over the No.

1 court which was completed last year. The LTA is now in a strong position to support British tennis, with the organisation having a total equity of £175.8m and abundant cash reserves of £14.9m. However, the LTA did use the government’s furlough scheme on around 50% of its staff in April.

Wimbledon has been cancelled in 2020 and although the All England Club does have pandemic insurance, the financial outlook for next year will be based on the conclusion of the insurance claims process. This is the first year since World War II that Wimbledon has been cancelled.

A statement from the government body mentioned, "Whilst the LTA delivered a profit for 2019, the current outlook for 2020 and beyond will be very different due to the financial impact of the current pandemic. Our responsibility is to protect the long-term growth and future of the sport in Britain and our reserves in isolation, can only support the short-term needs of the sport at this time.

The government furlough scheme is an essential measure to assist organisations, including the LTA, manage such cash-flow constraints and to safeguard jobs in the future”.