The Women’s Tennis Association has announced a long-term partnership with Mercedes-Benz which has the potential to be the largest in women’s sport.
The German car manufacturer will become the premier partner of the WTA and pour $50m (£37.5m) per year into women’s tennis for up to 10 years.
The deal has been described as the “most significant” in the WTA’s history, and could ultimately be worth up to half a billion dollars (£375m).
The National Women’s Soccer League in America signed a $240m (£180m) four-year media rights deal in November 2023, while Nike has invested $350m (£262m) across multiple women’s football leagues.
Announced on Wednesday, the WTA deal will help with the tour’s commitment to have equal prize money at events where both men and women feature by 2027 and at non-combined events by 2033.
Equal prize money was one of the key goals when the WTA was founded in 1973.
American tennis great Billie Jean King, who founded the WTA and was its first president, said the deal shows the tour “continues to lead the way in women’s sport”.
“Women are making their mark now and it’s just beginning,” she told BBC Sport.
“Equal prize money is so important and sends a really strong message.
“Can you imagine being a kid today, looking at all the different opportunities?”
The deal dwarfs the agreement struck in early 2022 with Hologic. As the WTA’s title sponsor, the medical technology company has nonetheless invested $20m (£15m) annually in a contract that runs until 31 December.
Mercedes-Benz previously sponsored the men’s ATP Tour from 1996 to 2008 and is an official sponsor of the US Open.
French Open champion Coco Gauff is the latest tennis player to become a brand ambassador, following Roger Federer and Sloane Stephens.
“Our mission statement when we founded the WTA was that any girl born in this world, if she was good enough, would have a place to compete, be respected and make a living playing tennis,” added King, who won 39 Grand Slam titles in singles, doubles and mixed doubles.
“This is a real partnership and Mercedes are in it for the long term.
“Seeing a brand like that stand with us sends a message that echoes far beyond tennis.”
The move is another significant investment in women’s sport. Revenue generated across women’s sport last year topped $1bn (£754m) and business analysts forecast it will hit $2.5bn (£1.8bn) by 2030.
The Mercedes-Benz deal has been brokered by the WTA’s commercial arm, WTA Ventures. It is supported by the private equity firm CVC Capital Partners, which invested $150m (£112m) into women’s tennis in 2023.
CVC – which has previously had a profitable association with Formula 1 and also invested in the Six Nations, Premier Rugby, Spain’s La Liga and the Indian Premier League – is building towards a 20% stake in WTA Ventures.
The WTA’s finances suffered significantly when outgoing chief executive Steve Simon suspended all tournaments in China and Hong Kong at the end of 2021.
The deal with Hologic helped matters, as did a three-year deal to hold the season-ending WTA Tour Finals in Saudi Arabia.
This year’s Finals champion Elena Rybakina walked away with £4m in prize money – the biggest pay day in women’s tennis history.
“This makes a statement for women’s sport globally,” WTA chair Valerie Camillo told BBC Sport.
“We’re excited to go on this journey with Mercedes.”
