CHAMPIONSHIPS SURPLUS

From 1877 to 1912 The Championships were promoted and managed by the All England Lawn Tennis Club and all profits remained in their control. In 1913 the Club amalgamated their three Championships with the five World Championships awarded by the Lawn Tennis Association and, in return, agreed to pay the LTA a percentage of the gate receipts. In practice, the LTA waived their right to this income for the years 1913 and 1914 to allow the Club to further expand the Worple Road Centre Court facilities. The LTA also took no money in 1919 but in 1920 and 1921 received a very small percentage of the gross receipts from admission and seats.

In 1920 a company was formed (The All England Lawn Tennis Ground Ltd.) with the objective of the Club purchasing and equipping a new ground at Wimbledon (present site) and with a view to raising capital by the issue of debentures and entering into a formal Agreement which would lock together the interests of the Club and the Lawn Tennis Association. The interlocking of the finances of The Championships between the Club, the Lawn Tennis Association and the Ground Company stems from an Agreement made in 1922, whereby the surplus from The Championships was shared between the Club and the LTA after paying the running expenses of the Club and deducting a preferential sum towards the redemption of debentures.

A revised Agreement made in 1934 provided, inter alia, for joint arrangements for managing The Championships instituted by the Club, mutual obligations in the event of a Championships financial deficiency and/or insufficiency, the transfer by the Club to the LTA of one half of its share-holding in the Ground Company and the payment to the LTA of all the surplus arising from The Championships after meeting expenses incurred in running and administering the Club and the expenses of running The Championships (other than capital expenditure).

The 1934 Agreement was varied by a Deed of Variation in 1993 to give effect to changes appropriate to the circumstances in the 1990s and was expected to continue until at least 31st July, 2013 on the expiry of five years' notice given by either party. The Deed of Variation perpetuated the financial principles set out in the earlier Agreement.

On 14 May 2009 the Club, the LTA and the Ground Company agreed arrangements for the continuation of their relationship in respect of The Championships for at least a further 40 years from 1 August 2013. Under a revised long term agreement effective from that date the Club will receive 10% and the LTA 90% of the surplus generated by The Championships and the Ground Company will continue to receive a facility fee out of the income of The Championships before determination of the distributable surplus.

On 1 August 2013, subject to certain conditions being satisfied, the Club will become again the 100% owner of the Ground Company by acquiring (or by the Ground Company itself acquiring) the LTA's shares in the Ground Company.

In 2011, formal reorganisations took place whereby (i) the Club was converted into a company limited by guarantee as The All England Lawn Tennis & Croquet Club Limited, (ii) The All England Lawn Tennis Club (Championships) Limited ("AELTC") was formed as a wholly-owned subsidiary and acquired all assets and undertaking of the Club relating to The Championships and (iii) the Lawn Tennis Association also incorporated and formed an operating company, LTA Operations Limited. The 2009 Agreements between the Club and the LTA were revised to reflect the new incorporated entities.

Consequent upon these reorganisations, The Championships are controlled, managed and promoted by and on behalf of AELTC and LTA Operations Limited with the Committee of Management comprising 12 AELTC members and 7 nominees of LTA Operations Limited. The day-to-day operations of The Championships are led and conducted by the AELTC.

CHAMPIONSHIPS SURPLUS 1877 - 1933

The funds generated by The Championships, less tax, are used by the LTA to develop tennis in Great Britain. The sum paid in 1981 exceeded the million pound mark, for the first time, and this figure has substantially increased each year.

CHAMPIONSHIPS SURPLUS 1934 - present

Note: (I). No details available.