Jan. 23 (Bloomberg) -- Even Serena Williams, with $22 million in career prize money, is spending less because of a recession that’s left tennis scouting for sponsors.

“I really cut back,” said Williams, carrying a $12 American Apparel Inc. bag in Melbourne, where the No. 2-ranked player is bidding for a fourth Australian Open title. “I don’t know if it’s because it’s everywhere in the media, but I am.”

Tennis is feeling the financial crisis beyond Williams’s thrift. Four men’s ATP Tour events are without sponsors in 2009; the women’s warm-up event for the French Open was canceled after losing its backer; the ATP has shed its principal sponsor; and reserves at ruling bodies have been sliced by tumbling markets.

With the likes of Roger Federer, Rafael Nadal and Williams driving interest in the sport, women’s and men’s professionals will compete for a record $167 million combined this year.

Tournament directors, who signed off on prize money mostly before last year’s market meltdown, face a harsher environment for selling tickets and retaining sponsors whose businesses are struggling. Players will receive 29 percent more prize money in 2009, when the World Bank predicts global growth will slump to 0.9 percent, the lowest since records became available in 1970.

“It’s unfortunate it comes at a time when the economy is taking a pretty big downturn, but hopefully sponsors will stick with tennis,” 10th-ranked James Blake said in an interview. “I’m sure things could take a turn for the worse, but we just need to worry about putting out the best product.”

‘Solid Position’

Tennis is better-placed than most sports because of the caliber of sponsors and their long-term agreements, according to Francesco Ricci Bitti, president of the International Tennis Federation, the body that oversees the four Grand Slams.

BNP Paribas SA, the federation’s main backer, agreed this month to sponsor the Indian Wells men’s and women’s event in March even against a backdrop of banking turmoil. BNP, France’s largest bank, this week is considering taking 2.55 billion euros ($3.3 billion) in assistance from its government.

“Tennis is in a solid position but this doesn’t mean that we should not be careful,” Ricci Bitti said in an interview in Melbourne. “That message should be given more to players and the professional tournaments” outside the four Grand Slams.

In the past month, the ATP has found backers for two tournaments, leaving it with four sponsor-less events this year, said ATP spokesman Kris Dent. The men’s tour is also seeking a replacement for its biggest sponsor, Mercedes-Benz, after the Daimler SA unit ended its 12-year support last month.

Eyes Open

“We players can’t just shut our eyes and say ‘you just pay us the prize money’,” said 55th-ranked Ivan Ljubicic, who represented players on the ATP board before quitting this week. “We need to figure out a way how to go on together.”

On the women’s WTA Tour, the German Open was scrapped this month when the Qatar Tennis Federation sold the event back to the tour, creating a hole in the schedule in May a week before the French Open begins in Paris. The gap should be filled with a European tournament outside Germany, said Larry Scott, the tour’s chief executive officer, in an interview.

The WTA Tour, whose $88 million six-year sponsorship by Sony Ericsson Mobile Communications Ltd. expires in 2010, has never been healthier, he said. The St. Petersburg, Florida-based organization has pared its marketing and communications spend by 15 percent and will cut travel costs.

“There is not going to be any short-term effect on our business of any great significance,” Scott said. “We’re all mindful it’s hard to predict the length and breadth of this downturn and the impact on marketing and television contracts long term, so we’re looking out for that.”

Record Crowd

Under clear Melbourne skies, there is little hint of darkening economic clouds at the year’s opening Grand Slam. The Australian Open is heading for unprecedented revenue and crowds. The Jan. 21 attendance of 63,357 was a daily record for any of the Grand Slams that include Wimbledon and the U.S., French and Australian Opens.

Tennis Australia, which owns and runs the tournament, expects revenue to increase 27 percent to A$147.3 million ($96.6 million) in the 12 months to June 2009, according to its annual report. More than a quarter of the previous year’s A$115.9 million sales came from sponsors.

Kia Motors Corp., L’Oreal SA’s Garnier and GE Money are the main backers whose logos surround the blue court at Rod Laver Arena. The trio forms a snapshot of some of the hardest-hit industries: cars, luxury goods and consumer credit.

‘Financial Calculator’

While South Korean automaker Kia last year extended its contract through 2013, Garnier’s deal has one year to run and GE Money’s three-year agreement ends in 2009. Jim Cock, GE Money Direct’s managing director, said the unit of General Electric Co. hasn’t decided yet whether to renew what he called “one of the most significant” Australian sports sponsorships.

“Instead of running a slide rule over the thing, we’ll probably be running a financial calculator over it,” Cock said in a phone interview, declining to disclose current terms.

Falling markets have left a mark on tennis bodies. Chief Executive Officer Steve Wood said Tennis Australia’s reserves had fallen by as much as A$6 million to “30-odd million” during the financial meltdown. Ricci Bitti said ITF reserves had dropped 10 to 15 percent to $40 million.

“It’s not what we want to see but we’re a long-term investor,” Wood said in a Jan. 12 interview. “We’ve got financial stability.”

Tennis Australia has cut costs, including travel and telecoms, without losing jobs, he said. The ruling body, which employs about 160 people, has also reacted to another by-product of the crisis: the local currency’s 50 percent drop against the U.S. dollar in the past six months.

‘Low Tide’

Nine days before the Open began, organizers increased prize money for the champions to A$2 million from $A1.62 million to keep the tournament competitive with other majors.

Even the prospect of a bigger paycheck and bargains in Melbourne’s stores won’t spur Williams into a spending spree.

“I’m not out there buying crazy things,” the 27-year-old Williams, who will play in the third round tomorrow, said at a news conference. “I have been keeping my shopping at a minimal with this economy thing. It’s low tide for me.”

To contact the reporter on this story: Grant Clark at Melbourne Park at gclark@bloomberg.net

Last Updated: January 22, 2009 23:14 EST