More than a million fans are set to attend the Australian Open over the next two weeks to experience the sights, sounds and flavours of Melbourne Park. But they soon might not recognise the precinct as work starts on a new vision that will transform Victoria’s historic sporting hub.

Melbourne & Olympic Parks chief executive, John Harnden, said the precinct is “one-of-a-kind, and we are committed to continuing to grow its reputation as a global leader in live events, and an ‘always-on’ destination for tourism and hospitality”.

A 12-month program of work is underway which will “define a future vision” for the sporting hub – located just east of the CBD and immediately south of the MCG – that is essential to the state’s athletic, entertainment and tourism sectors.

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“This work is focused on experiences and transformation over the next 10, 15 and 20 years, and will be crucial to determining the precinct’s future needs across infrastructure, experiential and strategic requirements,” Harnden said, adding that conversations have begun with Victorian government officials and those that access the facilities.

“As a multi-use precinct which stages events year-round, future planning for the site needs to balance the needs of our myriad stakeholders, including Tennis Australia, our sporting clubs, entertainment promoters and the community.”

Tennis Australia uses the site as a tenant of M&OP alongside two AFL teams, as well as the Melbourne Storm, Melbourne Victory and others. The NBL and Netball Australia – alongside the country’s biggest music and event promoters – are regular hirers of the three major indoor arenas.

Ahead of the start of the grand slam tournament on Sunday, TA has called for a new round of infrastructure upgrades, as the tournament looks to accelerate growth using startup investments and non-tennis activities.

The Australian Open set a new attendance record of more than one million fans during the main draw last year – which was extended by a day to start on a Sunday for the first time – driving TA’s annual revenue up almost $40m to $590m, a total greater than Cricket Australia’s and behind only AFL and NRL among sport’s major players.

The “happy slam” continues to expand its music and off-court entertainment offerings including a three-day music festival and two new court-side bars, as well as what Tennis Australia chief executive Craig Tiley estimates are five times as many activities and attractions in the precinct compared to last year. “It’s completely evolved into an event where people don’t just come and watch tennis, they come for all the sport and entertainment,” he said.

Last year’s attendances peaked on the first Saturday when 93,723 crammed into Melbourne Park, pushing amenities to their limits. “We’ve got to be mindful that this is not about trying to jam the site with as many people as possible every single day,” Tiley said. “It’s about the experience that every fan’s got to have when they do get on site.”

TA has hired an external firm to carry out customer research this year to help shape the future of the event. Tiley said the Melbourne Park site offered “room to grow” and that his organisation “won’t sit still”.

“We’ve had some great redevelopment of this which we’re very appreciative of, but the last time we finished building was in 2021, so that’s four years ago and now we’re really in the world of thinking about: what else do we need to further develop in Melbourne Park,” he said. “Does it need further expansion of precinct space? Does it need further development of its current facilities? We won’t sit still as an organisation or as an opportunity.”

A redevelopment costing close to $1bn was only recently completed, and M&OP continues to invest in the facilities. $20m has been spent in the past year for a new telescopic awning above Rod Laver Arena’s rooftop bar, upgrades to John Cain Arena’s retractable roof and seating bowl, and new shade structures for outside courts.

The opportunities, and limitations, of the site are crucial as TA looks to grow across its three main revenue streams of broadcast, sponsorship and ticket sales. Tiley said the motivations behind his organisation’s growth were less about revenue and more about increasing participation in tennis, which sits just behind basketball and, clear number one, football among ball sports in Australia.

“Our insatiable appetite for growth comes on a number of different fronts, and one of the biggest insatiable appetites is getting more people to play the game,” Tiley said. “Whether it be padel tennis or pop tennis or even pickleball tennis, but to have vibrant clubs and have big investment in getting people to play, because we know that’s our promotional vehicle to get people off the couch to come and watch our events.”

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Under Tiley, TA has moved into investing and venture capital. It co-owns the Laver Cup – the so-called Ryder Cup of the tennis world – and has licenses for its operation and media sales. Through TA’s startup arm Wildcard Ventures, it has invested in online ordering platform Mr Yum and eco-waste provider Samsara, along with a series of startups in the health and media space.

Last year’s financial results include a new line item of $15m within its assets, representing the growing value of TA’s equity investments. “That’s part of our objective in building the diversity of the business,” Tiley said.

The organisation has also developed production and events capabilities, which it hopes to apply beyond the sporting arena. “Ultimately, we’ll be able to do that beyond just the sport of tennis, which we’re looking to as far as that diversification,” Tiley said.

While revenues continue to escalate, so too do costs, and the organisation would have made a loss in 2024 were it not for interest earned on bank deposits and net foreign exchange gains. Remuneration for Tiley and his other senior staff rose almost $1m to $10.4m. Tiley’s salary in 2023 – listed on a filing to American financial regulators – was around $3.5m.

Tiley said TA is a global organisation and has to compete for staff that have opportunities across the world in its mission to improve Australian tennis. “From that perspective, we’re not going to make any excuses for getting the best talent you can possibly get globally,” he said.