Here Come the Girls: The Business of Women’s Sports
It’s seemingly all everyone is talking about, the internet is flooded with Caitlin Clark, Trinity Rodman, and other up and coming superstars. Women’s sports are on the rise… finally!
Growing up playing sports I always dreamed of making it a profession, but my dream was quickly squashed when I realized how few opportunities there were and how difficult it was to make a living as a female professional athlete. For the first time in my lifetime, I am starting to see the tide shift a bit. Not only are there women’s professional teams and leagues popping up left and right, but viewership, contract values, salaries, partnership opportunities, and media exposure are all increasing.
Here are some of the latest highlights in the industry:
Women’s elite sports are projected to generate $1.28B in 2024, surpassing the $1B mark for the first time, representing an over 300% increase from Deloitte’s previous projections in 2020.
Soccer and basketball are projected to be the most valuable, generating $555M and $354M respectively.
NWSL landed a major new TV deal worth $240M, while the WNBA inked a deal worth $2.2B over 11 years
92,000 people attended the University of Nebraska volleyball game in August 2023, setting the world record for highest attendance at a women’s sporting event
North America is expected to be the largest market with $670M, followed by Europe with $181M.
Women’s sports have seen a rise in media coverage, which has been crucial for increasing viewership and attracting sponsors.
Sponsorship revenues across women’s sports have increased 20%+ YoY; 52% of top 100 college athletes with 2023 NIL deals are female
24 million viewers tuned into the 2024 Women’s Basketball National Championship game making it the most watched basketball game since the 2019 Men’s NCAA Championship
10 pro US women’s teams have announced plans or have built new training facilities in the past 3 years; NWSL’s KC Current built the first women’s professional sports stadium
2 billion viewers watched the 2023 Women’s World Cup, while 3.4 million viewers watched the 2023 US Open final between Coco Guaff and Aryna Sabalenka
Livvy Dunne becomes the second highest paid NIL athlete with a valuation of over $4M
The Professional Women's Hockey League (PWHL) launched in 2023, unifying women's hockey under one league
Coverage of women's sports has tripled in the last five years, now accounting for 15% of U.S. sports media coverage
Brands like Ally Bank and Adidas have increased their investment in women's sports, recognizing the growing market and aligning with values of gender equality
It hasn’t always been like this. As I mentioned, when I was playing college volleyball not only was there no NIL program to monetize my personal brand, but there was very little prospect of making money off of my craft in the future. While I was not going to the Olympics anytime soon, there were still opportunities for me to play in leagues abroad (the only option at the time) and try my hand at professional volleyball. Out of curiosity, I looked into some of these opportunities and was appalled to see that my salary would be less than 1/3rd of what I would be getting if I took my investment banking return offer. I quickly made the decision that financially and for my overall career progression, it was time to hang up my jersey.
Nowadays, in volleyball specifically, the salaries have not made as much progress as we would’ve hoped, but there are options to stay in the states and play. Multiple new start up leagues have emerged including League One Volleyball (LOVB), Pro Volleyball Federation, and Athlete’s Unlimited. I have many former teammates and friends that now have the opportunity to play the sport they love on their home turf, which is truly inspiring and with the trajectory of the more established women’s sports professional leagues, I now have hope one day volleyball will be able to provide the same level of competition, compensation, and coverage that other leagues are receiving.
A few major developments and realizations have led to the explosive growth of women’s sports. Some of the key drivers I identified through my research were vastly different than the growth drivers in men’s sports, highlighting the foundational differences between the two businesses. While broadcasting rights, licensing agreements, and lucrative corporate partnerships are main growth factors for men’s sports, women sports offer a unique set of drivers that have propelled them to higher valuations, more revenue, and increased exposure.
1. The marketability of female athletes
Some of the most recognizable athletes in the world are stars like Serena Williams, Simone Biles, and Alex Morgan, to name a few, as well as emerging collegiate and professional athletes making a name for themselves like Caitlin Clark, the Cavinder Twins, and Trinity Rodman. Females are innately better at building personal brand and through NIL deals and brand partnerships have shown their influencer on consumer habits and spending. These athletes have the ability to reach millions of eyeballs and help brands monetize on their partnerships.
2. The power of female consumers
As mentioned in my previous newsletter on the female consumer, women drive 70-80% of all consumer purchasing through buying power and influence. We have seen this in action across entertainment (the economic effects of the Barbie movie, Eras Tour, and Beyonce’s international tour), ecommerce (rise of influencers as brand ambassadors such as Alix Earle), media (the growth of female podcasters and media companies such as Call Her Daddy and the Skinny Confidential) and healthcare (massive growth within women’s health through early stage investment and government programs for research and development). Since women’s professional sports resonate with a largely female fan base, the opportunities to monetize those consumers is enormous. Women will buy merchandise, spend money on tickets, purchase products supported by their favorite athletes, and even support sponsoring partners of the teams they follow.
3. The globalization of women’s sports
The global audience for women's sports has seen substantial growth, driven by increased media coverage, investment, and societal shifts towards gender equality. Viewership records have been shattered across various sports, including the NCAA Women's Basketball Tournament and the FIFA Women's World Cup, reflecting a significant rise in interest and engagement. The wide reach and resonation of women’s sports globally drives monetization through broadcasting, merchandising, ticket sales, and more, while opening up new markets previously untapped.
4. The link between sports and career success for women
Participation in sports significantly contributes to career success for women by developing essential skills such as teamwork, leadership, and problem-solving. A Deloitte survey found that 85% of women who played sports believe these skills were crucial to their professional success, with even higher percentages among those in leadership roles and earning over $100,000 annually. Additionally, 69% of women in management positions have a background in competitive sports, highlighting the strong correlation between sports participation and leadership capabilities. These skills, along with the confidence and resilience gained through sports, equip women to excel in competitive business environments. Increased participation in sports by young girls drives larger fan bases and more competitive elite level talent, enhancing the quality of play and increasing the ability to monetize women’s sports.
While these are only a few of the key aspects of women’s sports that have increased value of these assets and increased awareness of the value of the industry, there are many more I haven’t touched on that make women’s sports an attractive bet for investors, fans, players, and other parties involved. What I want to drive home in this week’s newsletter is that although women’s sports may not be as lucrative in the traditional sense of professional sports, the unique dynamics of the fan base and characteristics of the athletes have created an entirely new type of asset that has potential to drive value in many areas of the industry.
“[Women’s sports] didn’t get here by using the same playbook as men’s sports”
– Molly Beck, Sports and Entertainment Strategy Lead, Google