The Tournament of Champions, held every year in New York, originally started life in 1930 as a men’s only event named the US Professional Championships. In 1993, it acquired its current name and in 2001 added a women’s event.
In 1991, the tournament debuted at the Winter Garden in the World Financial Centre before making its home at the Vanderbilt Hall in Grand Central Terminal in 1995. It’s been held there ever since save for its temporary re-location, in 1996, to the Heights Casino in Brooklyn and, in 1996 and 1997 as the consequence of renovations to Grand Central.
In recent years, the ToC has developed into one of the most recognisable events on the PSA World Tour and has featured a multitude of famous winners during its 86-year history. The 2008 tournament, running from January 10th to the 16th, was typical in many ways. Involving 64 of squash’s highest-ranked male and female players, it drew over 4,000 paying spectators as well as thousands of commuters passing through Grand Central.
Yet, in one way, it was particularly significant. Within weeks of the end of the tournament its title sponsor, the global investment bank Bear Stearns, had collapsed.
The Big Short
Founded in 1923, Bear had become a victim of the global financial crisis and had been swallowed up by JP Morgan Chase, the ToC’s current title sponsor. Bear, and other Wall Street firms, had been heavily involved in issuing large amounts of asset-backed securities created by bundling together tranches of ‘sub-prime’ mortgages. In other words, mortgages whose holders were unlikely ever to pay back what they owed.
The asset-backed securities concerned were known as collateralized debt obligations (CDOs), a new unimproved version of which has now re-appeared in the global debt markets.
The story of several of the key players in the creation of the credit default swap market that sought to bet against the CDO bubble (and ended up profiting from the ensuing financial crisis) was told by Michael Lewis in his 2010 book ‘The Big Short’. The book highlights the eccentric nature of the type of person who bets against the market or goes against the grain.
The book has has now been turned into an Oscar-nominated film of the same name starring Christian Bale, Steve Carell and Brad Pitt.
Players in the world of global finance are nothing if not innovative. Yet herd behaviour again prevailed in the run-up to the global crisis. Banks, credit rating agencies, insurance companies and regulatory authorities alike failed to recognise that the system which they were gaming was rotten.
Since the crisis, nothing much has changed. Not even the event taking place every January in Grand Central Terminal, New York.
But, whatever the state of the global financial market, there will always be players to game the system, win, lose or just about break even. And some of them will pay for their name to be emblazoned across the front wall of a glass squash court in Vanderbilt Hall.
Thanks to the PSA for its article on the history of the Tournament of Champions and to Wikipedia for its entries on the ToC, Bear Stearns and The Big Short. Michael Lewis’s book, “The Big Short” is published by Allen Lane.