Government Waste

Should Connecticut taxpayers be buying a tennis tournament? You and I are shelling out $618,000 for the New Haven Open. The Open is a professional tournament run by the Women’s Tennis Association. Since major sponsors have pulled out and male tennis players no longer participate, attendance has been down. Since 2008, attendance has gone from more than 80,000 to below 50,000.

According to published reports the tournament was set to leave the state. The United States Tennis Association (USTA) had agreed to sell the tournament and move it to North Carolina. The USTA had planned to combine the women’s tournament with the men’s tournament in that state. But the Association for Tennis Professionals (ATP) turned the idea down.

That is when Connecticut officials apparently learned of the ‘opportunity’ and decided to keep it in Connecticut by offering to buy the tournament.

But what is the government’s role when it comes to bailing out a failing tennis tournament?

The quasi-government group in charge of signing off on the deal unanimously approved it at its Oct. 17 board meeting. Capitol Region Development Authority, (CRDA) was given a 10 minute presentation on why this investment is one the state should be adding to its portfolio. The administration says this investment is in the wellbeing of our state residents. But is it?

An economic impact study conducted in 2008 showed the tournament generates approximately $26 million in regional economic impact, including almost 300 jobs and $1.1 million in state tax revenue. But that was during a time when it was both a men’s and women’s event and people actually went to watch tennis. The situation is different now. This year’s championship match drew a paltry 3,993 spectators.

Clearly, an updated study is needed, which is why the state shouldn’t be jumping in so quickly.

As it stands, the plan is for the state to lease the tournament to a non-profit entity. That non-profit would then operate the tournament. The administration in Hartford under Governor Dannel Malloy says the money for the tennis tournament is coming from state economic development funds. Specifically, $618,000 will come from the Manufacturing Assistance Act, financed by loans repaid to the state.

But what if the tournament can’t turn a profit?

“I fully understand that the state is at risk for the value of the sanction,” said Ben Barnes, Secretary of the state Office of Policy and Management “If we come to the point where we can’t operate it or we don’t have the sponsorship, or it’s a money loser, we can hand the keys back to the WTA.”

I question if getting out of this deal will be as easy as it was to get in. Wouldn’t a private investor be better suited to take on this risk?

Public safety, public health and public education are the core functions of government. Taking on a failing tennis tournament when the private sector (the Association of Tennis Professionals) doesn’t even see the value in the investment – may not be our finest moment.
Senator Welch represents the 31st district towns of Plymouth, Plainville, Bristol, Harwinton and Thomaston.