On Thursday, the ATP announced the launch of a new World Cup by countries that will be played in 2020 in the month of January, in Australia.
The tournament will lead into Australian Open, the first Grand Slam of the season, which takes place in Melbourne in late January. It will happen that we will have two average events.
"The issue is timing, being so close, I get that", Kermode said at a news conference, following a video collage of players pledging their support to the ATP Cup.
As well as cash, the ATP Cup, being run in conjunction with Tennis Australia, is offering up to 750 ranking points - a huge incentive for the players. "There's a timing issue for the Davis Cup and that's an issue even without the ATP Cup", he said, adding there was time and place in the tennis calendar for two or three team events.
Kermode, the ATP's Executive Chairman and President, said productive talks had been held with the ITF about the calendar at this week's ATP Finals in London.
Tennis Australia CEO, Craig Tiley said: "This is an awesome opportunity, in close collaboration with the players and the tour, to deliver a globally impactful event that further elevates the sport and the fan interest in it".
The 118-year-old Davis Cup has been diluted somewhat by leading players like Roger Federer and Rafael Nadal picking and choosing when they commit to the event.
The 14-time major victor, who led Serbia to Davis Cup glory in 2010, believes having two such similar tournaments around the same time of year is unsustainable.
The ATP Cup, announced by the ATP and Tennis Australia on Thursday during the ATP Finals in London, will be played from 2020 across three Australian cities over 10 days in the lead-up to the Australian Open, the first Grand Slam of the year, which starts in January.
"The Davis Cup has some serious issues to think about, I think. I honestly don't think it's good for the sport".
Tiley said more than three Australian cities were bidding to stage the ATP Cup and that discussions were ongoing with the likes of Brisbane, which now stages a combined event in the same week as the ATP Cup, as well as the Hopman Cup, the ITF-sanctioned mixed team event held at the same time.
"It's not an ATP land grab or anything like", Kermode added. "This is us promoting big events in which we can attract new audiences". I'm very, very sure that a lot of top players will not play. Investment group Kosmos, headed by Spanish footballer Gerard Pique, is putting in $3 billion over 25 years, but unless the marquee players turn out it could be superseded by the ATP Cup.
"If you make it in a team format, it can be fun", Federer said.
In contrast, the Davis Cup doesn't offer prizemoney or ranking points.
The Laver Cup, an exhibition team event which began in 2017 and is held in September, is another commitment for the players.
The ATP Cup, which will clash with the ATP's Doha tournament, will see 24-nations split into six groups, with eight emerging to compete in a knockout phase.
"We want to keep growing tennis, give the players an environment where they can perform to the best of their abilities and then ensure they are appropriately appreciated and rewarded". The criteria for entry into the ATP Cup will be based off the ATP Ranking of the No. 1 singles player from each country.
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