Australian Open in a dilemma: Insurance expires
The Australian Open have taken out insurance against a complete event failure due to a global pandemic. The problem: The contract expires in July.
by Lukas Zahrer
last edit: Apr 25, 2020, 09:48 pm
Due to the COVID-19 pandemic, operations on the ATP and WTA tour will initially cease until mid-July. Wimbledon has already had to be canceled , the French Open should take place in September . The US Open is hoping for an event in late summer, and a move of the event away from Corona hotspot New York to Indian Wells is being discussed.
Wimbledon confirmed that the losses due to the cancellation were partially covered by insurance. An insurance sum of 200 million euros is said to have been taken out for an annual contribution of almost two million euros. Tennis Australia has expanded insurance coverage in recent years and has also protected itself against pandemics.
"Alongside Wimbledon, we were probably one of the few sporting events to have pandemic insurance," Tennis Australia CEO Craig Tiley told The Age and Sydney Morning Herald . "But it expires in July. We are talking about what the future could look like."
Australian Open: ghost tournament, cancellation
According to Tiley's statements, the insurance company may be reluctant to negotiate to extend the policy. "Now it would be a good time for them because the whole world would be ready for another pandemic. The likelihood that such drastic measures will be necessary after this pandemic is very low," Tiley tried to strengthen his position.
Meanwhile, the Australian Tennis Federation is already preparing for the Australian Open 2021. One of the scenarios is a staging in front of empty ranks without spectators - the league in Australian football is already leading the way. Even a cancellation is already being dealt with. "We need a financial model for all sorts of scenarios. We have some money, but it's quickly used up if we don't make any sales," said Tiley.