The Money Behind the Australian Open
Lessons from one of the most innovative events in sports
Whatsup Squad,
Organized by Tennis Australia, the Australian Open (AO) is the first grand slam of the year and the highlight of the country’s sports calendar.
While the tournament relies on traditional revenue streams such as broadcast rights and sponsorships, the AO has introduced several new innovative programs that deserve more attention.
Billion Dollar Impact
The AO is the largest economic generator in Australia sports.
Over the past decade, it has contributed over $3 billion in economic benefits to the state of Victoria.
In 2024, the tournament delivered record economic benefits to Victoria, injecting $533 million into the state’s economy, according to a Nielsen Sports report.
That’s up from the previous record high of $388 million in 2020.
"The Australian Open showcases Melbourne and Victoria to billions of people worldwide, inspiring more to visit our vibrant city and state and further fueling our economic growth."
- Craig Tiley, CEO of Tennis Australia, Director of the Australian Open
Hosting a Grand Slam positions Melbourne as a world-class city, placing it in elite company with New York City, London, and Paris.
In 2024, Visitors to the AO booked 622,491 nights in Victorian hotels, with a record average daily spend per visitor of $308.
Along with the economic impact, it delivers significant brand value for Melbourne.
94% of visitors who attended Australian Open 2024 agree that the AO is a major highlight in the global sporting calendar and 95% that it puts the attention of the world onto Australia during the event.
Lucrative deals, such as their 5-year, $107 million sponsorship agreement with Kia and their 5-year, $425 million media rights agreement with Nine, provide a strong foundation to operate the tournament, but Tennis Australia’s commitment to domestic and global growth continues to improve the experience for all stakeholders.
The YouTube Loophole
There were 558 million unique global viewers of Australian Open 2024, up 57% on 2023.
Still, the Australian Open has come up with a bold new plan to expand its reach: animate its participants.
Exclusive broadcast rights (sold to companies around the world like ESPN) prohibit organizers from showing live matches for free, but there is nothing stopping them from streaming animated versions of the live games on YouTube.
The project, labeled AO Animated, works by having sensors on the actual courts at Melbourne Park feeding data into a system that then produces digital reproductions of the live match, with only a two-minute delay.
The animated feeds were developed by AO Labs, the research and development arm of Tennis Australia’s pipeline.
Although the players are in avatar form, all the commentary is the same.
This AI technology is designed to captivate a new generation of tennis fans, making the sport more accessible and engaging, particularly for kids and families.
The animated feeds debuted at the Australian Open a year ago, peaking at 800,000 views for the men’s final. This year, matches are receiving four times more viewers.
The technology is similar to what was used when Disney+ broadcast this season's NFL game between the Dallas Cowboys and Cincinnati Bengals as "The Simpsons" on Monday Night Football.
AO Startups and AO Ventures
New investment money has recently poured into sports and entertainment as the sector experiences strong expansion globally, and AO is at the center of the industry in Australia.
Announced earlier this week,, Tennis Australia completed the first close of its first venture capital fund — AO Ventures.
The $30 million fund was established to provide early backing to high-growth technology-led startups that are innovating in the worlds of sport, entertainment, media and health.
But AO is not new to the startup scene.
Since its launch in 2022, the AO Startups program has hosted a cohort of early-stage tech companies during the Australian Open at the Tennis Australia HQ in Melbourne.
Twelve companies pioneering new player, fan and event technologies joined the innovative AO StartUps program, making it the largest intake since the program’s inception.
Final Thoughts
From pioneering AI-driven animated feeds to investing in high-growth startups, Tennis Australia has shown how rights holders can push the boundaries of traditional sports business models.
For rights holders in the Caribbean and beyond, the lessons are clear:
Maximize Economic Impact: Use major events to boost local economies and promote destination branding, as AO does for Melbourne.
Embrace Innovation: Experiment with technology, like AO Animated, to engage new demographics and expand reach beyond physical stadiums.
Foster Ecosystems: Partnering with startups can unlock new synergies, drive growth, and position your organization at the forefront of industry trends.
The global sports landscape is evolving rapidly, and those who adapt will lead the charge. Melbourne is 10,000 miles away from the Caribbean, but its lessons resonate loud and clear.
Until next time ✌🏾