The LTA has returned a profit for the first time in four years – partly due to the financial success of last year’s Wimbledon.
British tennis’ governing body recorded an operating profit of £8.7m in 2019, having lost £6.3m the previous year.
The LTA has increased its reserves to more than £75m.
But the cancellation of this year’s Wimbledon, and all of the summer grass court events, means that money is very likely to be drawn upon in future.
“The impact of the Covid-19 pandemic presents a business risk,” the LTA says in its Finance and Governance Report.
“However the LTA maintains adequate cash balances and reserves to mitigate the potential short-term financial impact of this risk.”
The surplus the LTA receives from The All England Club is certain to fall next year, even though pandemic insurance will shelter the Club from the worst effects of cancellation.
The All England Club has agreed to pay the LTA 90% of its annual surplus until 2053.
The LTA has also put aside up to £20m in grants and interest free loans to help venues, coaches, players and officials through the crisis.
Staging Fed Cup ties at Bath University and London’s Copper Box Arena helped the LTA’s commercial revenue rise by just over 10% last year.
Spending on the performance budget, meanwhile, increased by a third. Academies have been opened in Loughborough and Stirling as the LTA aims to make Britain “one of the most respected nations in the world for player development.”
Article courtesy of BBC Sport
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