The Growth of Women’s Pro Sports

Women's professional sports are gaining traction. Deloitte predicts that, in 2024, revenue generated by elite women’s sports will surpass $1 billion, a new record.1 This growth is being seen at the Olympics too. For the first time in the history of the games, Paris 2024 will be the first Olympics to have gender parity.2 From increased viewership to lucrative sponsorship deals, the business of women's sports is on the rise.

As the market for women's professional sports expands, investors are paying attention.

In March 2024, the Las Vegas Aces became the first WNBA team to sell out of their season ticket membership allotment.3 Soon after that milestone, the women’s NCAA basketball tournament attracted a peak of 24.1 million viewers during the South Carolina-Iowa game, making it the most-watched basketball game at any level since 2019.4

And in July, Willow Bay, the Dean of the USC Annenberg School for Communications and Journalism, and her husband, Disney CEO Bob Iger, became controlling owners of Angel City Football Club in a record-setting deal worth $250 million.5

Women's sports are attracting a diverse and engaged audience. According to Nielsen, 84% of general sports fans are interested in women's sports, with younger audiences (ages 18-34) showing the highest interest levels. This demographic is particularly valuable to sponsors and advertisers due to their social media savvy and spending power.6

Unlike many male-dominated sports leagues, women's sports tend to appeal to a balanced gender demographic.7 This diverse viewership provides a unique opportunity for brands to effectively target both male and female consumers. Engaging content, interactive social media presence, and community outreach programs further enhance audience engagement, creating loyal fan bases that support teams and athletes both online and offline.

Recognizing the growing market and the opportunity to reach a diverse audience, brands increasingly align themselves with female athletes and teams. A historic pending WNBA’s media rights deals with Disney, NBC, and Amazon for $75 billion over 11 years reflects that.8

Corporate partners like Nike, Adidas, and Puma have also invested in women's sports, sponsoring individual athletes and teams. The National Women’s Soccer League (NWSL) has seen their sponsorship fees quadruple since 2021.9

Brand partnerships with women's sports are often seen as a commitment to gender equality and social responsibility, enhancing the sponsoring company's brand image. As more brands recognize the value and potential of women's sports, the number of high-value sponsorship deals is expected to grow.10

Professional sports can also be an economic boon for a community, and women’s pro sports offer new growth opportunities. Australian consultancy Halkin Business Partners highlighted that the 2023 FIFA Women’s World Cup brought tourists who spent money on hospitality and sightseeing. This influx created and funded jobs and potentially stimulated new foreign investment.11

Another notable trend in the rise of women's professional sports is the emergence of women's sports bars across the United States. These businesses cater to fans of women's sports, providing a dedicated space to watch games and support female athletes.

The Sports Bra in Portland focuses exclusively on women's sports, hosting events and fostering a sense of camaraderie among fans. They are currently expanding and soliciting franchising opportunities.12

Inspired by the Sports Bra’s success, A Bar of Their Own opened in Minneapolis. The venue only shows women’s sports and offers drinks from women-owned breweries and distilleries.13 InLondon, food and drink venue Set Piece Social (SPS) hosts events to watch women’s sports. After a few successful pilot events, the business hosts regular pop-ups to celebrate major women’s sporting events.14

Momentum is growing, and more women’s sports bars are popping up in major cities like Seattle, New York, and Chicago. For some patrons, it is a way to easily catch pre-women’s games, many of which are still unavailable on most streaming services.15

Several trends and innovations are likely to shape the future of women's professional sports. Virtual reality (VR) and augmented reality (AR) are being explored to bring fans closer to the action, providing immersive experiences that can drive engagement and revenue. The integration of data analytics in sports is also transforming how teams train and compete, offering insights that can improve performance and fan engagement.16

Social media and digital platforms are also raising the profile of women’s pro sports. Athletes like Serena Williams, Megan Rapinoe, and Simone Biles have substantial social media followings, which they use to connect with fans, advocate for social issues, and promote their personal brands. These platforms provide a direct line of communication between athletes and their audience, bypassing traditional media gatekeepers and allowing for more personalized and engaging content.17

The rise of women's professional sports represents a transformative shift in the sports industry, driven by increased media coverage, lucrative sponsorship deals, growing merchandise sales, and a broader socio-economic impact.

Women’s professional sports are also a lucrative emerging market. While valuations of men’s pro-teams continue to rise (the Washington Commanders were acquired for $6 billion in 2023), analysts predict that valuations will soon slow. Women’s pro sports, however, are only starting to hit it out of the park.19

Private equity managers are increasingly considering sports franchises as potential investment opportunities. These managers can provide helpful capital and bring their management expertise to sports franchises to unlock new revenue opportunities and professionalize organizations. Crystal Capital’s platform offers advisors and their investors access to these private market strategies.

Sources:

1. Deloitte Global. November 2023. “Women's Sports Revenue.”
2. International Olympic Committee. IOCC News. “Paris 2024: The First Games to Achieve Full Gender Parity.”
3. WNBA. Las Vegas Aces. March 2024. “Aces Sold Out Of Season Ticket Memberships For 2024!”
4. Nielsen. News Center Events. April 2024. “Women’s College Basketball Championship Game Draws Record-Breaking 18.9 Million Viewers.”
5. Angel City FC. July 2024. “Angel City Football Club Enters Into Definitive Agreement With Willow Bay and Bob Iger to Become the New Controlling Owners of the World's Most Valuable Women's Professional Sports Team.”
6. Nielsen. Sports & Gaming. October 2018. “Global Interest in Women’s Sports is On the Rise.”
7. Parity. May 2024. “Largest Global Study of its Kind Reveals Women’s Sports Fandom is Moving From “A Moment” to Mainstream.”
8. The New York Times. The Athletic. July 2024. “WNBA’s Media Rights Deals Set League Up to Receive $2.2 Billion Over Next 11 Years: Sources.”
9. Sports Pro Media. March 2024. “What the Sponsorship Data Reveals About the NWSL’s Burgeoning Business.”
10. Sports Pro Media. March 2024. “Women’s Professional Sports Sponsorships Increase by 22% in 2023/24.”
11. Halkin Business Partners. 2023. “The Economic and Unity Boost: The 2023 FIFA Women's World Cup.”
12. 2024. The Sports Bra Portland.
13. 2024. A Bar of Their Own.
14. The New York Times. The Athletic. March 2024. “The Pop-Up Dreaming of Becoming the UK’s First Women’s Sports Bar: ‘It’s What We Need Right Now’.”
15. Vogue Magazine. March 2024. “The Rise and Rise of Women’s Sports Bars.”
16. Citigroup. Global Insights. February 2023. “Sports: How Tech is Changing the Game.”
17. Financial Times. July 2023. “Why Investors Are Cashing in on Women’s Sport.”
18. Forbes Magazine. Control of Washington Commanders As $6 Billion Deal Closes. July 2023. “Billionaire Josh Harris Takes Control Of Washington Commanders As $6 Billion Deal Closes.”
19. Price Waterhouse Coopers. Sports Industry Outlook 2024. “Sports Industry Outlook in North America.”