Women’s soccer is undergoing a transformative shift in ownership structure, unlike any other major U.S. sports league. While leagues like Major League Soccer and the NBA have allowed private equity investors to hold passive, minority stakes, the National Women’s Soccer League (NWSL) is paving the way by permitting these firms to take majority control of the economics. This groundbreaking approach is attracting institutional capital to inject additional funds into the league’s assets, propelling women’s soccer to new heights.
The entry of private equity firms into women’s soccer is reshaping the landscape of the sport. Sixth Street made history by becoming the first firm to own a team in the NWSL, acquiring the San Francisco women’s team, Bay FC, for a record $54 million. This move was followed by Carlyle’s partnership with the Seattle Sounders FC to purchase the Reign FC, valuing the team at an impressive $58 million. These substantial investments signify the rising value and potential of women’s soccer, as evidenced by the surge in NWSL attendance by over 40% this year.
Private equity involvement in the NWSL brings strategic value and expertise to the table. Carlyle’s entry into the league is not merely a financial transaction but a partnership aimed at enhancing the business operations and performance of women’s soccer teams. By leveraging analytics and drawing on resources from its diverse portfolio, these firms are committed to elevating the sport and delivering a superior product on the field. The focus is on sustainable growth and maximizing revenue streams in a competitive market.
The revenue landscape of women’s elite sports is on the brink of a significant milestone, with projections estimating a billion-dollar industry. Soccer plays a pivotal role in driving this revenue, comprising nearly half of the total figure. While traditional sources like ticket sales and partnerships contribute significantly to women’s sports revenue, the NWSL’s recent media deal worth $240 million highlights the increasing value of broadcasting rights in the league. This, coupled with the potential acquisition of Angel City FC at a record valuation of $250 million, underscores the immense growth potential in women’s soccer.
Despite the burgeoning interest from private equity firms, the NWSL is cautiously navigating the realm of institutional ownership in sports. Commissioner Jessica Berman acknowledges the need for careful consideration in balancing the benefits of institutional capital with the league’s ethos and values. With other major sports leagues limiting private equity ownership to 30%, the NWSL is pioneering a new path that could influence the future landscape of sports ownership. As the league continues to attract investments and expand its reach, maintaining a sustainable and inclusive approach will be paramount to long-term success.
The influx of private equity investment in women’s soccer marks a significant turning point in the growth and development of the sport. As institutional capital drives financial backing and strategic expertise into the NWSL, the potential for women’s soccer to thrive on a global stage has never been greater. This paradigm shift in ownership models underscores the evolving nature of sports business and presents a unique opportunity for stakeholders to shape the future of women’s soccer.