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A Slam Dunk for Investors: The Surge of Women’s Sports Revenue
A staggering milestone looms on the horizon: women’s sports are poised to eclipse a monumental $1 billion in global revenue in 2024—an astonishing fourfold increase from mere years ago. A metamorphosis is unfolding, one fueled by an escalating fervor among players and fans alike, beckoning investors to step onto the court and elevate teams to unprecedented heights.
In this transformative landscape, a confluence of escalating ticket sales, lucrative sponsorship agreements, and a dynamic roster of star athletes have begun reshaping the perception and value of long-overlooked women’s sports leagues. Renowned analytical firm Wealth Enhancement dissected valuation data from Sportico, shedding light on how this newfound interest has sparked a renaissance for leagues such as the Women’s National Basketball Association (WNBA) and the National Women’s Soccer League (NWSL).
These leagues, while relatively nascent, emerged palatially later than their male counterparts. The NBA, for instance, burst onto the scene in 1949 after a merger of earlier men’s leagues, while the WNBA officially took its first breath in 1996—a full half-century later. Compounding this timeline, Major League Soccer’s launch aligned with the WNBA’s inception, but it wasn’t until 2012 that the NWSL graced the pitch with its first season, tracing its roots back to past iterations of women’s leagues dating as far back as 2001.
In its inaugural year, the NWSL attracted an average of just 4,200 enthusiastic spectators per match; in stark contrast, a decade later, those figures have surged to an impressive 11,000. A telling testament to the evolution and growth potential of women’s sports, this change symbolizes a shift in public perception and viability of professional women’s leagues—once deemed unfashionable, now the next frontier of investment.
Recent evaluations indicate that both the NWSL and WNBA have triumphantly crossed the $1 billion valuation threshold, affording a ring of attraction to the world’s affluent—investors eager to capitalize on the exponential growth of professional women’s sports, an industry rapidly rising in prominence.
Wealth Enhancement
Expansion: A New Chapter for WNBA
In the realm of the WNBA, an intriguing dichotomy emerges as sponsors gravitate towards teams, drawn by a business approach vastly distinct from their male counterparts. The NBA thrives on television broadcasting deals that account for a hefty 50% of its league revenue, rendering a bastion of financial stability. Conversely, women’s teams proffer a more scintillating prospect—albeit accompanied by elevated risks. As detailed in a revealing 2024 S&P Global report, these teams, while still riding the wave of lower initial costs, present a tantalizing opportunity for extraordinary returns on investment.
The fervor surrounding women’s sports extends beyond mere numbers; fans are acutely engaged, making them prime targets for sponsors eager to channel their marketing efforts into this burgeoning market. Data from Nielsen unveils that fans of women’s sports exhibit higher rates of interaction with sponsoring brands across digital platforms, amplifying the allure for marketers. Furthermore, the social prestige associated with uplifting athletes traditionally marginalized in the sports arena infuses additional value into these investments.
Among the vibrant roster of athletes, rising stars like Caitlin Clark stand out. The all-time NCAA basketball scoring leader, now dazzling the league with her prowess as a guard for the Indiana Fever, has ignited record-breaking viewership, captivating even casual fans and inspiring the next generation of female athletes.
Wealth Enhancement
Valuations Reimagined: Women’s Soccer Surges Ahead
Your eyes aren’t deceiving you; while the investing world catches on, the scarcity of teams translates into ripe opportunities for eager investors. The NWSL began the year with just 12 squads, a much smaller roster compared to the 29 boasted by its male equivalent, MLS. However, fresh momentum now propels the league forward, with the grand introduction of two new teams: Bay FC and the resurgent Utah Royals.
This burgeoning interest catalyzes a slew of historical milestones. The Kansas City Current, established in 2020 and co-owned by a powerful trio including Brittany Mahomes, has birthed a groundbreaking sports facility—one constructed solely for a women’s team, symbolizing progress in a field historically defined by shared spaces with men’s teams.
Yet, even as Kansas City strives to carve its legacy, the title of the league’s most valuable franchise is held by none other than Angel City FC. Launched in 2020 by multimillionaire Reddit co-founder Alexis Ohanian, the team has ascended to international acclaim, recently being purchased by Disney CEO Bob Iger. Ohanian envisions a landscape where the NWSL could eventually surpass MLS in significance, asserting that the narrative of women’s soccer in America is poised to envelop its male counterparts.
“Unless there’s a seismic shift, that perspective is unlikely to materialize,” Ohanian remarked during a recent podcast with venture capital firm Seven Seven Six. “However, I firmly believe the NWSL has the potential to eclipse MLS in the next decade, weaving a narrative that celebrates excellence in women’s football across America.”
Story editing by Alizah Salario. Additional editing by Kelly Glass. Copy editing by Tim Bruns.
