What's become of tennis? Did it disappear along with Bjorn Borg in the early '80s? Actually, the tennis industry is slowly fighting back from a prolonged slump in popularity. San Diego racquet manufacturer ProKennex is riding it out and preparing for the next up cycle.

    "Tennis is not going to die," says ProKennex President Kevin Gilbert. "It’s too great a game. And there are still roughly 17 million tennis players in the U.S. and millions more around the world."

    Gilbert concedes that tennis is far from out of the woods. "Professional tennis is entertainment, and some within the industry have forgotten that. We need the drama of great rivalries that we once had. We need charismatic personalities. A tennis version of Tiger Woods would certainly help."

    Three years ago, ProKennex believed it had developed the breakthrough technology that would propel it past market leaders Wilson and Prince, but the tennis slump has left that goal unrealized. "When we introduced the Kinetic technology, tennis decided to become unfashionable," muses Gilbert. "Today, the tennis business is close to half of what it was five years ago."

    Gilbert refers to its Kinetic technology as a "secondary energy source." The Kinetic racquet has a hundred micro bearings strategically located in tiny chambers on the racquet head. Upon impact with a tennis ball, the bearings are catapulted forward, releasing kinetic energy, which counteracts the force of the ball crashing against the racquet. The result is not only a more powerful stroke, but less shock and vibration.

    Ironically, Gilbert believes ProKennex has traded places with Wilson and Prince in terms of market reputation. To recover lost sales in a declining market, Wilson and Prince have reduced prices, introduced dozens of new models, and opened up the distribution channels, much like ProKennex did before the Kinetic came along.

    "We introduced this new technology (in 1994) at the same time the market was going south," says Gilbert. "It’s been very difficult for all tennis companies, let alone one which had just spent $3.5 million developing a new product."

    ProKennex now holds a 9 percent share of the premium racquet category ($150 and up), and a 17 percent share of total racquet sales. At the beginning of the tennis decline in the early '90s, ProKennex had a 24 percent market share, but less than 1 percent of the premium category. The Kinetic line of racquets retails in the $180 to $250 range.

    Total sales for the Kearny Mesa-based company were $14 million in 1996. "If we do the same amount this year," says Gilbert, "we will outperform the industry, which will probably be down another 9 to 13 percent."

    ProKennex has diversified into manufacturing hockey sticks, golf clubs, squash and badminton racquets to offset the downturn in tennis sales. Diversification has allowed the company to remain patient and continue to support and build on the Kinetic story.

    Gilbert, though bruised by the sharp decline of the tennis industry, is resolutely optimistic about the future. "We believe, at the end of the day, the company that controls technology and innovation, wins. But it must have a sound, disciplined approach. We are biding our time."

    Tony Allison has been writing about the business of sports for three years. Golf remains both a passion and an eternal mystery.