Doha: The WTA and their title sponsors, communications giant Sony Ericsson, have yet to agree an extension to their 88mn-dollar agreement despite a deadline fast approaching, it was announced here yesterday.
The deal was signed in 2005, but the deadline for renewal is at the end of 2009 with negotiations given a sharper focus by the global economic situation.
“I can certainly confirm we are looking at it very carefully,” said Aldo Ligouri, the vice-president and head of global communications at Sony Ericsson.
“If you have been following Sony Ericsson these past several months, we’ve gone through some very important changes, including a new president having come onboard only a few weeks ago. So we are looking at our sponsorship seriously.
“We haven’t made any decision yet, and all options are open. We will announce the decision alongside our partner at the appropriate time.”
When the six-year deal was signed in 2005, it represented a much-needed boost for the WTA, which had been without a title sponsor in 2003 and 2004.
However, two weeks ago, Ericsson reported worse-than-expected third quarter results, with a 74% fall in net profit blamed on falling sales and problems at its Sony Ericsson venture.
Ericsson, the world number one mobile network firm, said net profit in the three months to September fell to $120mn, well below analyst forecasts compiled by Dow Jones Newswire. Fed Cup just one tournament too many, says Serena. - AFP