WHEN THE MARKET SAYS ONE THING, AND THE USTA CLAIMS THE OPPOSITE. By Javier Palenque

It is imperative to grasp the essence of “the market” and its true implications. Allow me to clarify: a market is a dynamic arena where buyers and sellers converge, exchanging money for goods or services they value. In economics, the market doesn’t lie—it reflects the unvarnished truth of demand, supply, and accessibility. To make this discussion relevant to tennis, let us break it down with precision:

Characteristics of the Tennis Market

Participants:

• Buyers: Individuals or entities seeking lessons, club memberships, children’s competitions, or adult leagues.
• Sellers: Coaches, parks, leagues, and clubs providing these goods and services.

Goods or Services:

• Tangible offerings, such as access to courts, equipment, and fitness opportunities.
• Intangible benefits, including physical health, stress relief, and a balanced lifestyle fostered by healthy competition.

Price Mechanism: Prices are dictated by supply and demand. When fees for lessons, court rentals, or tournament entries spiral out of reach for most, the market reacts predictably—exclusion. A glaring example is zip code 11368 in Queens, NY. Here, the residents—many of whom scrape by on minimum-wage jobs contracted by the USTA—cannot dream of affording tennis lessons or attending the US Open. Such pricing structures do not serve the broader market; they decimate it, pushing it further out of reach. To sustain its bloated bureaucracy, the USTA continually raises prices, alienating the very audience it claims to serve while getting all the benefits of the nonprofit status from NY state. It’s like a beggar in a suit. The sad part is that the bankers for whom the US open is hosted, never play, never will take a lesson or support the tennis economy. So why is the USTA allowed to be a not for profit? It is not one, this also must change.

Medium of Exchange: Primarily money. In this case, exorbitant amounts of it.

Competition: Markets thrive on competition, yet the USTA’s leadership, through incompetence and neglect, has stifled it. Tennis clubs want members to spend money and play, public parks seek high utilization rates, and parents yearn for accessible opportunities for their children. Yet, under the USTA's monopoly, these ambitions falter, and alternative sports like Pickleball and Padel flourish where the ineptitude of the board fails to act.

Ignoring the Market is a Fatal Flaw

No person or organization can defy the market indefinitely. History and economics have proven this time and time again. The USTA, however, continues its losing battle against reality, driven by self-interest and denial of all board members and chairmen. While market forces scream that tennis delivery in America is fundamentally broken, the USTA’s leadership clings to its fabricated narrative of success that does not exist. How is this allowed you may ask, the answer is the culture that is perpetuated by the same board that is afraid of accountability and dignity.

What are the markets saying?

• Notice that of all the characteristics described above, the US Open fit in neither of them, it is a completely different business altogether. It is a pop up food and drinks venue with foreign entertainment. That is all it is. If you still disagree with me, read again the points above.
• Novak Djokovic, arguably the greatest player of all time, has voiced his concerns.
• Esteemed publications like The New York Times and The Financial Times have highlighted the sport’s decline.
• Even the USTA’s own financial reports reveal a faltering system.
• The parking lot at Lake Nona tells you so every single day. Yet the Chairman and CEO pretend still that tennis is growing.
• USPTA, dropped tennis from its logo.
• All old tennis magazines are dead, the new ones dropped the word Tennis from them.
• The WTA is very close to being insolvent.
• The ATP has shrunk its events to M500 and M1000 since the others lose money.
• In both cases the WTA and ATP, the market is screaming at them, we are not interested. But the CEO of the USTA claims the exact opposite while selling the last M1000 under its control, the Cincinnati Open and claiming 3M players in Florida and not bothering to book an arena for the BJK cup, and use the last stadium court at Lake Nona that sits a pathetic 600 people, on top pf that they did not sell tickets, they assigned them to their own USTA people who after day one, went shopping and never bothered to watch the event.
• You would think how can the USTA claim to grow tennis? when it is evident that everything around the USTA clearly says that it dying? Why would the chairman state such falsehoods?

Despite this, the USTA claims that tennis is “booming,” attributing this supposed growth not to their leadership, but to an unforeseen catalyst—a global pandemic. COVID-19 may have temporarily inflated participation, but that bubble has burst, leaving the sport more fractured than ever. But the Chairman still claims growth and so does the CEO.

The Lies and Neglect Are Unforgivable

Leadership at the USTA continues to spin tales of growth, ignoring glaring evidence to the contrary. Lake Nona, the USTA’s ill-conceived headquarters, is a case in point: as tennis courts vanish, Pickleball and Padel gain ground. Yet the newly elected USTA chairman has doubled down on the lies, masking the organization’s failures with performative virtue signaling. Their job is not to champion hollow ideals; it is to safeguard and grow the game of tennis. It is not very complicated, but they posture for every social cause of the moment but do nothing for the sport for years and years. It does not matter who the Chairman is, it is all a well-concocted lie and deception. How can you claim growth publicly, while privately giving away one of the stadium courts to Pickelball? and authorizing less tennis courts to pay for maintenance with Padel and Pickleball?

When Novak Djokovic, Pickleball, Padel, and respected global publications align in declaring that the USTA’s approach is failing, the prudent course of action is not to lie but to confront the truth. To do otherwise is irresponsible, foolish, and ultimately destructive to the sport. Which is what the USTA does.

The Verdict

The USTA’s failures are not accidents. They are the direct result of a leadership group more invested in self-preservation than in fulfilling the organization’s mission. This is why the sport is in decline. This is why tennis courts are empty, and why young athletes and casual players are turning to alternatives. This is why I want every one of the Ol’ boys out of the sport.

Please note that the new board is made up of many women and many virtue-signaling people. Ol’ Boys is not a boys-only club, it is an expression of a rotten culture that percolates through the entire organization. This is what needs to change the culture, which is precisely what the board will not do. Leading to the inevitable further decline, lies, and higher prices that all they do is slowly kill the sport. Remember, bankers are not fans of the sport either, they are simply on a business dinner expensed out to entertain clients. There is no reason for the USTA to be a not for profit. It does nothing for the sport.

What is needed is a new vision and for smart people to try to save the sport one zip code at a time. But, this is hard to do when the board censors critics, blocks board applications, and allows the status quo to prevail. If nothing changes, the death of the sport is certain.

I say NO to ineptitude and YES to growing the game.

The Ol’ Boys’ Club that runs the USTA must go. Their time is up, they have accomplished lots of revenues that help no one other than their own jobs. The sport is doomed.

If you care about the future of tennis, I welcome your thoughts and support. You can reach me at [email protected].

PS. The sport is forever doomed when honesty and accountability are missing.

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