Laguna Beach resident Eric Davidson, co-founder of Newport Beach-based senior homecare operator Vintage Senior Living, has acquired a significant stake in World TeamTennis LLC, or WTT.
In doing so, he follows his father’s legacy in the ownership and operations of niche professional sports.
As part of the transaction, Davidson was named board chairman of the Carlsbad-based tennis league, a showcase of sorts that attracts some of the game’s top stars who compete in a truncated two-month season, which kicks off in July.
“I’m very committed to putting capital into the league to grow it considerably,” said Davidson, who was already invested when he acquired the Orange County Breakers in 2017. The Breakers are one of six existing teams in the league.
WTT has longevity on its side, if not profitability.
It’s one of five U.S. professional sports leagues in operation for over 40 years, along with the NFL, NBA, NHL and MLB.
“I’m really trying to make World TeamTennis much more relevant, as it was in the 1970s and 1980s,” he said.
Consider that period the golden era of the progressive organization, the first professional sports league to feature men and women on the same team.
Tennis legend Billie Jean King and ex-husband Larry King established WTT in 1974. Billie Jean, who became the first woman to coach males on the pro tour, remains a minority owner.
Davidson acquired his ownership stake from Mark Ein, owner of WTT’s Washington Kastles. He now holds the largest stake in the league with San Diego Aviators owner Fred Luddy.
Financial terms of the deal were undisclosed.
In 1998, Davidson began Vintage Senior Housing, which grew to become one of the state’s largest senior living operators until 2016, when Toledo, Ohio-based Welltower Inc. paid $1.15 billion for its 19-property portfolio.
New Teams, Networks
“Our plan is to add franchises and increase our media exposure,” Davidson said of the league, which plans to announce new broadcasting partners soon.
Last season, it streamed matches on its website, www.wtt.com. The championship typically airs on an ESPN affiliate.
Last week, it announced the addition of two new franchises, in Las Vegas and Orlando, bringing it up to eight teams.
WTT reportedly plans to own the franchises at onset and sell them after they’ve been operating a few years.
A 2017 Forbes report put the franchise entry point for the league at around $1 million, and said that the annual budget for each team was likely to be in the $1 million to $1.5 million range.
Davidson hopes to replicate the business model established by billionaire Philip Anschutz, whose Anschutz Entertainment Group once owned six franchises in then-upstart Major League Soccer, which began in 1996 and had a rocky first decade of operation before picking up momentum.
The 24-team soccer league now has franchise fees in the $150 million range.
“We’re plagiarizing his method,” said Davidson.
The Breakers’ first season in 2003 was played at Palisades Tennis Club in Newport Beach, which is owned by Ken Stuart. A year later, the team won its first title, capping an era when it landed contracts with some of the top players in league history, such as Pete Sampras, Lindsay Davenport and Maria Sharapova.
The Breakers continued at Palisades Tennis Club until 2006 and returned in 2017 when they won what was then called the Mylan World Tennis Team championship in the first year under Davidson’s ownership.
Each team is comprised of two men, two women and a coach. Team matches consist of five sets—one set each of men’s singles, women’s singles, men’s doubles, women’s doubles and mixed doubles.
The first team to reach five games wins each set. One point is awarded for each game won, and a nine-point tiebreaker is played if a set reaches four all.
Under the model, each WTT team drafts players from the Association of Tennis Professionals and Women’s Tennis Association, which King founded in 1973.
Last year’s players included seven-time Grand Slam singles champion Venus Williams; 2019 Australian Open and 2018 U.S. Open women’s singles champion Naomi Osaka; 2017 U.S. Open women’s champ Sloane Stephens; and twins Bob and Mike Bryan, one of the most decorated doubles team in tennis history.
This season’s draft is scheduled for March 12 at the BNP Paribas Open at Indian Wells Tennis Garden.
Aiming for Profitability
Players sign a contract with the league rather than individual teams. Each team must post a certain annual financial sum to the league to maintain its position.
WTT is not profitable and neither are its clubs, but Davidson is optimistic he can turn that around.
“That’s very achievable,” he said. “Some teams are close to breaking even.”
League sponsors have included Geico and Wilson Sporting Goods.
Davidson leans on his father for advice on and off the court.
Gary Davidson was a sports pioneer and co-founded the American Basketball Association in 1967.
The ABA, which operated from 1967 to 1976, introduced stars such as Julius “Dr. J” Erving, George “Iceman” Gervin and Artis Gilmore.
Innovations in the league included the three-point shot, which along with a few franchises eventually made its way to the NBA.
Four years later, Gary established the World Hockey Association, where he served as its first president. In 1973, he also co-founded the World Football League, where he doubled as president and commissioner.
Gary played a key role in helping the Kings establish the WTT before its inception. Eric said calling his father after he acquired the Breakers was a lifetime highlight.
“I don’t think he’s ever been that happy,” Eric said of his 84-year-old father, who lives in Newport Beach. “It’s kind of a full circle thing.”
