Women’s soccer is attracting significant interest from private equity investors, marking a new chapter in the sport’s development. Unlike other major U.S. sports leagues like Major League Soccer, the NBA, MLB, and the NHL, which permit private equity firms to hold passive, minority stakes, the National Women’s Soccer League (NWSL) has allowed these investors to take majority control of the economics.
“We see institutional capital as a way to infuse additional resources behind our assets,” NWSL Commissioner Jessica Berman told CNBC.
Last year, Sixth Street became the first firm to own a team by acquiring the San Francisco women’s team, Bay FC, for a record $54 million. Recently, Carlyle partnered with the Seattle Sounders FC to purchase the NWSL’s Reign FC, valuing the team at $58 million—a significant increase from the $3.5 million it sold for five years ago.
As part of this deal, Sounders FC owner Adrian Hanauer serves as governor of Reign FC on the NWSL Board, while Carlyle’s Alex Popov acts as alternate governor. Popov highlighted the league’s rising attendance, which is up over 40% this year, as a sign of the sport’s growing momentum.
Maya Mendoza-Exstrom, the Reign’s chief business officer, emphasized that the investment reflects the intrinsic value of women’s sports. Carlyle brings extensive resources and expertise, particularly in analytics, which can enhance the business operations and on-field performance of the team.
This year, women’s elite sports revenue is expected to surpass the billion-dollar mark for the first time, with soccer accounting for roughly half of that figure. Women’s sports revenue is more dependent on merchandising, ticket sales, partnerships, and sponsorships compared to men’s sports, which earn more from broadcast rights. However, the NWSL recently signed a $240 million, four-year media deal—40 times higher than its previous agreement, signaling a positive trend in broadcast revenue.
The increasing valuations and private equity interest are likely to continue. Disney CEO Bob Iger and his wife, Willow Bay, are reportedly close to acquiring Angel City FC at a valuation of $250 million, which would set a new record for a women’s sports franchise.
Commissioner Berman stated that while the league is cautiously navigating institutional capital, it offers valuable insights for other leagues considering similar investments. The NBA, MLB, NHL, and MLS allow private equity ownership of up to 30%, and the NFL is also exploring this option, with Commissioner Roger Goodell noting significant progress and interest in the space.
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