Mercedes-Benz announces game-changing WTA partnership to close pay gaps

The GIST: Yesterday, Mercedes-Benz (MB) announced a historic 10-year partnership with the WTA to infuse an estimated $50M annually into the women’s tennis circuit. Potentially worth up to $500M total, the deal is being dubbed the “most significant” in WTA history as it powers the tour toward equal prize money at all men’s and women’s tennis events.

• It’s one thing to invest heavily in women’s sports to win over consumers in the space, but when brand investment is associated with pay equity — something we’ve seen with Ally, Aflac, and other brands — consumers become even more committed. It’s called driving consideration.

The details: Through this deal, MB will be a premier WTA partner and the tour’s exclusive automobile partner. MB will have a presence at an estimated 30 WTA tournaments in 2026 and even more in 2027, which includes exclusively offering vehicles to players and officials. This comes days after the company named world No. 3 Coco Gauff as its newest brand ambassador.

• And it’s worth noting that since establishing commercial growth arm WTA Ventures in March 2023, the tour saw a 25% YoY revenue boost after its first full year.

The sector: While car brands have sponsored women’s sports in the past, offering their services more directly is an aligned, impactful way to boost brand recall with fans at events. Toyota has famously done this as a mobility partner for the Olympic and Paralympic Games, while Chevrolet previously transported Angel City FC fans to games.

• Rideshare companies are considering this, too. Uber is the official rideshare partner for LA28, meaning it will manage rides for athletes, fans, and personnel. And Lyft recently announced a partnership with Oak View Group, which manages more than 75 sports venues across the U.S.

The precedent: In April, we zeroed in on how brands like Aflac, Ally, UKG, and Budweiser have crafted specific campaigns to close monetary gaps between women and men athletes. This is how the MB deal is billed, too: It’s specifically helping the WTA reach its goal of equal prize money at men’s and women’s events by 2027 and at non-combined events by 2033.

• In 2023, Ally told us commitments to its 50/50 Pledge resulted in YoY boosts in brand preference, consideration, and likeability, trends that have continued after subsequent women’s sports commitments. With this in mind, more companies should consider partnering with the WTA to help it meet its goal — being associated with pay equity pays off.