How do tennis investments work?

CC
Written by Chase Chamberlin
Updated 2 months ago

Through Commonwealth’s platform, players can raise capital by offering investors a share of their future earnings through a 6-year revenue share agreement.

The capital is expected to cover 2-3 years of player expenses including travel, coaching, strength and conditioning, physio, and other tennis-related costs (which can run $75,000+ per year). This financial support provides players time to adjust to the highs and lows of competitive tennis without the undue pressure to immediately perform.

The agreement is structured to potentially allow investors to break even when players reach a solid position on the ATP Challenger Tour, typically between rankings of 125-275. There is also potential for financial returns as players achieve higher rankings and perform in Grand Slams and ATP Tour events.

Though many previous offerings have offered positive net returns the primary goal is to help players embark on a long and successful professional career. To that end, they retain the majority of their earned income on a sliding scale. As they rise in the rankings and increase their earnings, backers may see a positive net return on their investment.

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