Finance, the All England Lawn Tennis Ground plc, and the role of the LTA
Financial arrangements pre-1920
From 1877 to 1912, The Championships were promoted and managed
by The All England Lawn Tennis Club and all profits remained in
their control.
In 1913, the Club amalgamated their three Championships with the five World Championships awarded by The Lawn Tennis Association, and, in return, agreed to pay the LTA a percentage of the gate receipts.
In practice, the LTA waived their right to this income for 1913 and 1914 to allow the Club to expand further the Worple Road Centre Court facilities. The LTA also took no money in 1919, but, in 1920 and 1921, received a very small percentage of the gross receipts from admission and seats.
The All England Lawn Tennis Ground plc ('Limited' up to 24.1.96)
In 1920, a company was formed (The All England Lawn Tennis Ground Ltd) with the object of the Club purchasing and equipping a new ground at Wimbledon (present site) and with a view to raising capital by the issue of debentures and entering into a formal Agreement which would lock together the interests of the Club and the LTA.
Interlocking of finances of The Championships between the Club, the LTA and the Ground Company stems from an Agreement made in 1922, whereby the surplus from The Championships was shared between the Club and the LTA after paying the running expenses of the Club and deducting a preferential sum towards the redemption of Debentures.
In 1934, a revised Agreement provided for joint arrangements for managing The Championships; mutual obligations in the event of a Championships financial deficiency and/or insufficiency; the transfer by the Club to the LTA of half its shareholding in the Ground Company and payment to the LTA of all future surpluses arising from The Championships, after meeting expenses incurred in running and administering the Club and The Championships (other than capital expenditure).
In 1993, the 1934 Agreement was altered by a Deed of Variation to give effect to changes appropriate to the circumstances in the 1990s and beyond.
The Deed of Variation perpetuates the financial principles set out in the earlier Agreement, recognises the part played by the Club in staging The Championships and incorporates The All England Lawn Tennis Club (Wimbledon) Ltd. as the fourth party to the Agreement - a company formed for the purpose of exploiting commercially any trademarks, trade names etc. for the financial benefit of The Championships.
Agreement expires on or at any time after 31 July 2013, if five years' notice is given by either party.
Championships Surplus
Funds generated by The Championships, less tax, are used by the LTA to develop tennis in Great Britain.
AELTC
& the Local Community