#204 Why The National Women’s Soccer League Is Poised For Explosive Growth
Sep 13, 2023
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Exploring the growth and success of the National Women's Soccer League, including record-breaking attendance and new expansion teams. Analysis of rising valuations and revenue multiples in NWSL teams. Comparison of player salary expenses between Europe and the US in soccer leagues.
The NWSL's financial success is evident through increased attendance and sponsorship deals, showcasing significant fan engagement.
The recent collective bargaining agreement signifies positive developments in player compensation, contributing to a more sustainable and professional environment for athletes.
Deep dives
Expansion and Growth of the National Women's Soccer League
The National Women's Soccer League, NWSL, has seen remarkable growth and expansion in recent years. With the addition of two new expansion teams by 2026 and a record-breaking attendance report, the league is experiencing its best year ever. The imminent new TV deal and increase in broadcast and commercial revenues indicate a positive trajectory for the league's business and economics. FIFA's 2022 annual report highlighted the immense growth potential of women's soccer globally, emphasizing that it presents a significant opportunity for FIFA and the sport of football.
Financial Performance and Sponsorship Success of NWSL
The NWSL's financial success is evident through various indicators, such as increased attendance and sponsorship deals. The league has broken its attendance record with over one million fans attending games in just 18 weeks, showcasing significant fan engagement. NWSL teams' reliance on ticket revenue, making up about 50% of their income, emphasizes the importance of fan attendance. Moreover, the league's average of 37 sponsorship deals per team and the substantial 87% increase in sponsorship revenue in 2022 reflect a strong financial position and market appeal.
Collective Bargaining Agreement and League Valuations of NWSL
The NWSL's recent collective bargaining agreement with the NWSL Players Association signifies positive developments in player compensation and welfare. The agreement resulted in a 25% increase in the salary cap and improved base compensation for players, contributing to a more sustainable and professional environment for athletes. Despite traditionally low revenues and profitability, NWSL teams have seen a surge in valuations, with Angel City FC valued at $100 million and other teams showing significant growth. The league's potential for expanded media rights revenue, along with ongoing growth trends, suggests a promising outlook for the NWSL's future financial success.
The National Women’s Soccer League is having its best year ever as a league and is growing fast. The NWSL has made a ton of big moves lately, including the addition of two new expansion teams by 2026, record-breaking attendance, and an impending new TV deal. This podcast will break down the business and economics behind the NWSL. Enjoy!
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