Trendy tennis journal Racquet is dealing with an unsure future after the removing of high editor and cofounder David Shaftel, whose exit was the end result of months of disagreement between him and writer/cofounder Caitlin Thompson over the course and monetary state of the corporate.
In an e mail despatched to workers and contributors on Nov. 3, Thompson introduced that Shaftel had left the corporate “after we couldn’t agree on the best path forward.”
“Obviously after building Racquet together over the better part of eight years, this wasn’t a turn of events that in any way was taken lightly,” Thompson wrote within the e mail, which was considered by SportsAreena. “I know a lot of you are very close with Dave, and I truly tried everything I (and a whole bunch of lawyers) could think of to avoid this, but in anticipation of things ending up with this outcome, I’ve been in planning and transition mode for some time. I’ve got a new board and management team gearing up to take things to where I and the investors think they need to go, and I hope that means that we’ll continue to work together in the months, weeks and years to come.”
According to Shaftel, Thompson had urged the corporate’s most popular shareholders to take away him from the board—they had been the one two individuals on the board—so she might hearth him, though he continues to retain roughly 32 p.c of shares. (The firm was primarily break up into thirds amongst him, Thompson, and numerous most popular shareholders, with a small variety of unallocated shares.) Shaftel instructed SportsAreena that the rationale for his ousting was as a result of he had misplaced confidence in Thompson’s enterprise administration, and that her choices induced Racquet to expire of funds in October.
Thompson mentioned in a dialog with SportsAreena that since September she and Shaftel have primarily communicated by means of attorneys, and that he was the one who tried to push her out as a result of he “just didn’t want to go forward together.” (Shaftel known as this “revisionist history.”) She mentioned that when she introduced a plan to the shareholders for the way forward for Racquet and Shaftel didn’t, the shareholders voted to take away him. When requested whether or not the corporate at the moment had cash, Thompson mentioned, “We’re getting a new round of investment.” She declined to elaborate.
“We had a schism in the way we wanted to go forward with the business,” Thompson mentioned. “Increasingly we’ve been growing, which is great, but also we’ve had a difference of opinion in how to spend our time and how to punch above our weight, as something really small.”
For Shaftel, the elemental subject was that he believed Thompson was extra desirous about income than revenue so as to create a excessive valuation for the corporate, whereas he mentioned he wished sustainable development and to grow to be cash-positive. In his eyes, the journal had a small however loyal viewers and will succeed if it centered on rising that readership organically. “When we got to a point where things became too grandiose, that was really where we went wrong,” he mentioned. “The plans became too grandiose and unrealistic.”
Shaftel acknowledged that there have been respectable methods to scale whereas elevating cash—Racquet had gone by means of two small rounds of funding in 2019 and 2021, in response to Thompson—however discovered it unreasonable for the corporate in its present state. He additionally mentioned he not trusted Thompson to spend these funds judiciously.
What Shaftel known as “the end of the company as we knew it” was as a result of a pair of crippling monetary missteps earlier this yr.
“She will say that the company was insolvent, and I wouldn’t let her raise money, because she needs me to sign off to raise money,” Shaftel instructed SportsAreena. “That is true, but if I was to take a red pen to that statement, I would say: We are insolvent because of her reckless actions, and I wouldn’t let her raise money because I lost faith in her leadership.”
Thompson and Shaftel first met by means of a mutual good friend who had labored with every of them at separate publications. They met in 2007 and bonded over watching tennis at a bar; days later they attended a U.S. Open match between Rafael Nadal and David Ferrer. As they bought to know one another, they talked in regards to the concept of beginning a publication that will cowl the game in a approach that wasn’t achieved by conventional tennis media.
Incorporated in 2015, Racquet launched its first subject in the summertime of 2016, after a profitable Kickstarter campaign raised $55,000. Its mission was to cowl tennis tradition past particular person matches, with a particular fashion and emphasis on glossy illustrations and images that thrived within the print journal format. The journal featured contributions from writers like Taffy Brodesser-Akner and Ben Rothenberg, and gamers like Andrea Petkovic. In 2021, Naomi Osaka guest-edited a difficulty. In addition to her function as writer, Thompson hosts a podcast with former Grand Slam doubles champ and tennis coach Rennae Stubbs. SportsAreena workers author Giri Nathan commonly contributed to the journal and its Friday e-newsletter, On Court. (Nathan mentioned he was instructed by Thompson that the e-newsletter had been “put on pause,” and he had no present initiatives within the works for Racquet.)
Tennis has all the time had a satisfying aesthetic, and Racquet was “the purveyor of all the things cool and fashionable in this sport,” in response to one one who labored on the inventive facet of the corporate and requested to not be named. The crisp colours, distinct style, and picturesque courts translated nicely to a print format that basically popped on a espresso desk or desk. The accompanying articles had been enthusiastic and adventurous. Racquet was doing its personal factor, searching for to advance tennis writing past “Roger Federer as Religious Experience,” and the neighborhood embraced it.
Thompson served as writer, and Shaftel as editor. Due to the slim workers, their tasks would typically overlap; in smoother instances, Thompson would contribute on the editorial facet and Shaftel would have a voice within the enterprise facet. But Shaftel primarily dealt with the enhancing and writing, and Thompson would arrange conferences and discover methods to get cash by means of initiatives or investments.
“Most of my job is email, and I can do that from anywhere,” Thompson said in a September interview with The Cut. “I’m talking to people, pitching brands, working on our events, merger calls, et cetera. But the actual work I do is managing the vision as it comes to life. This morning, I answered emails and got some admin out of the way to keep projects moving, all from the bench while waiting to get on the court. I meet with people on the court, whether they’re investors or collaborators, because it gets people in a state of play. When they’re in a state of play, they’re creative, they’re open, they’re a more vulnerable version of themselves.”
Craig Shapiro, a documentary filmmaker and the host of an eponymous tennis podcast, first realized of Racquet in 2016, when he confirmed as much as one of many journal’s occasions on the non-public tennis membership Court 16 in Brooklyn. A self-described “hired gun/friend of the magazine,” he befriended each founders, wrote articles for Racquet, and collaborated with Thompson on different initiatives for the location by means of his manufacturing firm.
Shapiro, who sat in on calls as Thompson met with purchasers, mentioned she had quite a lot of charisma because the face of the journal and was adept at getting individuals to purchase in, however tended to overpromise and drive him to scramble when the circumstances of a mission modified.
Over the years, Thompson had give you terribly bold concepts for the way forward for Racquet. “All she ever really talked about was valuations and money-raising, and buying these big crazy things,” Shapiro mentioned. He and Shaftel independently talked about instances when Thompson mused about wanting to accumulate a tennis membership in Spain, or purchase the TV community Tennis Channel, and even the United States Tennis Association. But it was unclear the place the cash would in the end come from, and the desires by no means solidified into actual plans. When requested by SportsAreena, Thompson denied these ambitions. “I didn’t discuss buying those things, but we did discuss maybe doing some partnerships,” she mentioned.
As time went on and extra manufacturers bought concerned, the corporate took on more and more extra points of a inventive company, searching for a path to monetize Racquet’s cultivated coolness. It printed non-editorial content material and labored on initiatives for manufacturers together with Fila and Sergio Tacchini. There had been collaborations with Adidas, together with a custom shoe. For the primary subject, Racquet threw an occasion on the Ace Hotel location in London. These initiatives introduced one other income stream past subscriptions and merchandise.
It’s not unusual for a classy journal to capitalize on companies wanting a bit of that fashion. Canadian journalist Tyler Brûlé based the design journal Wallpaper in 1996, bought it to Time Inc. a yr later, then launched the company Winkreative in 1998. In 2007, after his non-compete clause lapsed, he based one other fancy journal known as Monocle. For Thompson, a part of the inspiration for Racquet got here from a 2015 Nieman Lab interview with Brûlé, through which he talked about how one can develop a “quality audience.” In a 2017 Nieman Lab prediction, Thompson wrote that Racquet‘s objective was “identifying a niche audience centered around highbrow tennis culture and providing a premium experience at a premium price.” Shaftel, who had beforehand freelanced for Monocle, drew from his expertise solely “in the sense that I wanted it to be a useful magazine, something that you could read cover to cover, rather than something that just looks pretty.” Thompson pitched that mixture of favor and substance to individuals with promoting budgets.
“That’s the blueprint for a print magazine becoming profitable,” Shapiro mentioned. “You become the creative agency for the brands that want to be in Racquet. Where can Chase Bank, or Evian, or American Express, or Yonex, or Adidas—where can they go once you leave that tournament? Racquet. It was the perfect place to hang your hat.”
While there have been differing opinions on whether or not a few of these initiatives had been on-brand for Racquet, the corporate’s method was alluring to the tennis world and supplied loads of alternatives to generate profits. But those that spoke with SportsAreena broadly agreed that there was a difficulty with Thompson’s incapability to execute on these alternatives. “It did not have a person leading that charge that had the business acumen to follow through on those promises,” mentioned the one that labored on the inventive facet, who then left the corporate when it was clear that Thompson’s objective was to plan occasions at an unrealistic frequency.
According to Shaftel, the choice that struck a essential blow to the corporate got here this previous May. Thompson was accountable for organizing the Racquet House on the Palais de Tokyo in Paris, held earlier than the French Open. She deliberate the three-day occasion below the assumption that the sponsors would come by means of with the cash promised in a verbal dedication, however the last quantity got here in so much decrease, main the journal’s celebration to be roughly $200,000 over finances. Shaftel instructed SportsAreena that he noticed that deal as a “sackable offense,” and had a falling-out with Thompson, however they tried to restore the partnership and transfer on.
Roughly three months later, it roughly occurred once more. Thompson deliberate one other multi-day Racquet House event in August at Rockefeller Center in New York City, as a part of the lead-up to the U.S. Open. It included speaking panels, a celebration, a particular tennis courtroom, and extra. Racquet had a first-rate location and acquired a point out in a Today present section. Again, the finances for the mission didn’t match the sponsors’ monetary dedication: The distinction was roughly $200,000. When requested about budgets for the 2 occasions, Thompson declined to touch upon monetary particulars of the corporate.
“We were out of money before [Racquet House NYC],” Shaftel mentioned. “The fact that that happened again, and we lost a ton of money again in New York, three months later … We had a talk and we tried to patch it up and keep going after Paris, and by the time it became clear to me that we were also going to lose a lot of money—the same exact series of unforced errors was going to happen again—I just couldn’t believe it. I couldn’t believe we were in the same position again, and once that happened, things were irrevocably fucked.”
Shaftel had spent the final couple of months engaged on the twenty fourth subject of Racquet, however pushed it again to January to coincide with the Australian Open, as a result of he mentioned there was no cash to proceed placing it collectively. In the weeks earlier than his firing, he mentioned he centered on publishing the e-newsletter and talking with attorneys.
When requested about his future plans, Shaftel mentioned he hoped to work on one thing new inside the identical realm. “Through this process, I’ve felt very supported by the creative community that’s helped me make the magazine, and I plan to continue working with them.”
Before her falling-out with Shaftel, Thompson had dinner with Shapiro in Los Angeles, and mentioned she tried to persuade him to do extra work along with her.
“I essentially said, Just work it out with Dave. Once this thing resolves itself, let’s see how this thing goes,” Shapiro mentioned.
That dinner was the top of their collaboration. “I knew at that moment that we were never gonna talk ever again,” he mentioned. “That’s how I feel right now. If we do speak, it’s gonna be pretty acrimonious, is my guess.”
The way forward for Racquet is unknown. In talking with SportsAreena, Thompson mentioned a number of instances that she wished to discover a approach ahead with Shaftel to maintain the corporate going and proceed the print subject. “My hope is we can still figure out how to somehow work together, if not in the same place, then certainly within parallel ways to make Racquet work,” Thompson mentioned. “At the end of the day, Dave really cares about this, as do I.” She mentioned she deliberate to rent 4 or 5 individuals inside the subsequent 18 months.
“I don’t have any intention of letting this fail,” Thompson instructed SportsAreena. “For me, going big is in a lot of ways the best way to make the best future for Racquet possible. I think that’s, at its core, a little bit of a difference between us.”
Shapiro did not assume it was out of the realm of risk for Racquet to efficiently full its pivot to a inventive company, relying on whether or not Thompson can pull it off. His phrases illustrated a working theme among the many conversations former contributors had with SportsAreena: They had been happy with the work they did, and annoyed that all of it fell aside like this. “We honored the past, we garnered the new kids, we pulled a community together in a way that nobody else has done in tennis,” Shapiro mentioned, “and it was something special.”
