4. CEO Report / Strategic Plan
4.1. Current business status update
...
Mr DAINTON also presented on the work being made to get WTT, from a business perspective,
back on track. It was noted that not everything planned for 2023 had come to fruition and that
it would be a slightly complicated year-end for WTT compared to what had been budgeted. Mr
DAINTON noted that more focus would be needed to look at event modelling, TV production,
and managing events, adding that the lack of a China Smash or the expected WTT Finals in a
country where negotiations were advanced will affect the final result. However, this was the first
year that WTT could see how events could operate after the pandemic.
Mr DAINTON noted that he was working closely with Mr LIU, Ms SÖRLING, Mr Khalil AL-
MOHANNADI and Mr LEI Zhenjian on looking for better ways to ensure the WTT board has better
decision-making processes. The next meeting of the WTT board will be slated for 11 December
2023 in Chengdu. Mr DAINTON wished to thank World Sports for their support and indicated a
line of credit to help with WTT’s cash flow during the period before the Olympic Games has been
agreed. Mr DAINTON added that World Sports has also been a big help to business modelling,
investment discussions and the success of the XTWC. Mr DAINTON noted the increased
confidence of World Sports and expected a China Smash to happen in 2024.
Dr MESHREF thanked Mr DAINTON for his update and expressed that the EB feel comfortable to
see Mr DAINTON taking control and going into the details of WTT, what gives hope that some
good changes would be coming, as requested from the EB. Dr MESHREF noted the ITTF-WTT
steering committee is not yet enforced and opined that there is room on the WTT Board for the
ITTF to have greater representation, suggesting adding an athlete on the WTT Board.
Ms SÖRLING acknowledged Dr MESHREF’s comment and noted that the composition of the WTT
Board should be discussed further at the WTT Board meeting in Chengdu.
Mr DAINTON agreed with Ms SÖRLING and acknowledged Dr MESHREF’s comment. Mr DAINTON
echoed that the steering committee should be set up first and to ensure that athletes are fully
represented on that committee, as there is where the technical decisions should be handled,
whether with respect to world ranking, rules to events, etc. Mr DAINTON continued that the WTT
Board could be more focused on the business and operational aspects of WTT. Mr DAINTON
agreed that both considerations should be taken at the meeting in Chengdu and a decision be
made around that.
...
8. World Table Tennis
8.1. Investment update
[Followed on from Agenda Item point 4]
Mr DAINTON presented an investment update, noting that the conversations initiated earlier in
the year are ongoing, with two offers having been received during the Summit period. Mr
DAINTON opined that there is room for improvement in both proposals and indicated that this will
be discussed at the next WTT Board meeting. Figures of the potential investment were given,
indicating that the amount of control requested makes them not so appealing.
Ms SÖRLING noted that this shows WTT is attractive to investors, echoing Mr DAINTON that to
lose control would not be ideal for WTT at this period of growth, as it could potentially mean that
WTT would not be able to use the investment according to the ITTF strategic plan. Moreover, as
seen in other sports, investors have created challenges for the sport and requested that the
investment money be used in different directions and strategies.
Mr DAINTON noted that the process of going through due diligence for the investment was a real
learning point for WTT to understand the business. Mr DAINTON noted that the size of the
prospective investor is notable, and this could be a good partner if conditions can be agreeable.
Mr NATRAN opined that in business, if someone wants to invest and take over more control, a
fair offer should be presented, suggesting continuing searching for alternative investments. At
the same time, Mr NATRAN suggested continuing negotiations with this potential investor,
perhaps with a restructured offer, for example, through creating a subsidy of WTT on special
markets. The prospective investor could then be a majority focusing on such special markets, and
if there is proof that by their contribution, those markets can be more successful than before,
then WTT can take a step further. Mr NATRAN further opined that focus should be kept on
cooperation and that the prospective investor has already spent time and resources on the
potential deal – from legal, finance, and valuation perspectives, agreeing with Mr DAINTON that
they seem to be a good potential partner.
Mr DAINTON concurred that WTT should not just walk away from the potential investor if their
initial offer is not good but find ways of potential cooperation. Mr DAINTON noted that in the
investment proposal, there was mention of a subsidiary in a specific region, which could be
considered.
