Investing in Sports: Women’s Sports and the Future
Dec 13, 2024
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Stacy Sonnenberg, Head of Global Sports Finance at Goldman Sachs, and Willow Bay, Dean of the USC Annenberg School of Journalism and owner of Angel City FC, dive deep into the booming world of women's sports. They discuss remarkable growth trends in attendance and viewership, investment opportunities, and the unique traits of the women’s sports audience. Bay shares her experiences leading a top franchise and the cultural shift that’s reshaping perceptions, emphasizing the importance of equity and community engagement in driving future success.
The surge in attendance and viewership for women's sports symbolizes a cultural shift and enhanced engagement, attracting significant corporate investment.
Valuation growth in women's sports leagues like the WNBA and NWSL indicates a promising investment opportunity, requiring patient capital for long-term benefits.
Deep dives
The Surge in Women's Sports Popularity
The growing enthusiasm for women's sports is marked by a significant increase in attendance at live matches and an unprecedented rise in viewership of televised games. Factors contributing to this momentum include the exceptional talent displayed by female athletes across various sports, which has captivated audiences. Corporations are increasingly recognizing the value of investing in women's sports, redirecting their sponsorship finances to support female athletes and teams. This multi-faceted rise in women's sports popularity signifies a burgeoning cultural shift that is fostering greater engagement and opportunities.
Investment Opportunities and Market Valuations
Women's sports teams are experiencing a notable increase in valuations, demonstrating a changing landscape in the sports market. While men's teams have historically commanded much higher valuations, leagues such as the WNBA and NWSL are on a growth trajectory that could lead to comparable gains in the future. Investors are being advised to approach this sector with 'patient capital,' as the investment will require time and ongoing support to build fan bases and boost media rights. Key drivers of valuation growth include enhanced media contracts and the potential for expanded merchandise sales targeting the growing women’s sports audience.
The Role of Star Power and Emerging Sports
The prominence of star athletes in women's sports, such as the WNBA's recent rookies, has driven significant interest and engagement among fans, resulting in higher attendance and viewership. Such visibility is complemented by legislative changes like the name, image, and likeness (NIL) rules, which have opened new revenue streams for college athletes, enhancing their marketability. Various emerging sports, including rugby and flag football, are also attracting attention, indicating a diverse landscape for women's sports investment opportunities. Investors are urged to consider these nascent leagues, which are gaining traction and show potential for future growth.
With record-breaking attendance at games and viewership of televised games, the groundswell of enthusiasm for women’s sports has created a cultural movement. How should investors think about the opportunity in women’s sports, and how might the growth trajectory of the professional women’s leagues compare to the equivalent men’s leagues? In the final episode of a four-part series on the changing dynamics in the business of sports, host Nicole Pullen Ross discusses the business forces driving growth in women’s sports with Stacy Sonnenberg, Head of Global Sports Finance. Nicole is also joined by Willow Bay, Dean of the USC Annenberg School of Journalism and the new controlling owner of the National Women’s Soccer League’s Angel City FC. Bay shares her perspective on leading the most highly valued franchise in the league during this watershed moment for women’s sports. Nicole Pullen Ross is Head of Sports and Entertainment for Goldman Sachs Private Wealth Management. She is also Head of the Private Wealth Management business for the New York region at Goldman Sachs.
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