Tennis Australia is reportedly on the cusp of signing a $100 million sponsorship deal with Korean automaker Kia — a record amount for Australian sport.
Kia has sponsored the Australian Open in Melbourne since 2002 and this new deal, worth up to $20 million per year over five years, is set to top Toyota’s $18.5 million per year AFL sponsorship.
According to The Australian, the deal could be revealed as early as today with an announcement featuring Kia ambassador and defending men’s champion Rafael Nadal.
The size of deal will be heartening to those at Tennis Australia, after the COVID pandemic disrupted the previous two tournaments. According to reports, Tennis Australia was forced to spend $80 million it had previously kept in reserve when it lost $100 million and had to take out a $40 million loan to offset biosecurity costs and offset lost ticket revenue.
At last year’s tournament, which saw Japan’s Naomi Osaka win the women’s singles, Tennis Australia was able to squeeze a $4.6 million profit from $505 million revenue and $20 million in government grants.
Tennis Australia is also set to receive another significant funding boost after it recently signed a record five-year $500 million cash and contra broadcast deal with Nine to 2029.
The Australian Open‘s other major sponsorship deal, with Chinese alcohol brand Luzhou Laojiao, is set to expire in June and is up for renewal.
The tournament is currently in the qualifying stages with the finals of the women’s and men’s singles set to take place on 28 and 29 January, respectively.
