Women’s Soccer and Private Equity: A Match Made in Heaven

Introduction

The National Women’s Soccer League (NWSL) is paving the way for private equity investments in sports, with six major leagues in the United States allowing private equity investors to take minority stakes. However, only the NWSL has allowed private equity firms to take majority control of the economics. In this article, we will explore the relationship between women’s soccer and private equity, highlighting the benefits and challenges that come with this unique partnership.

The Rise of Private Equity in Women’s Soccer

Sixth Street was the first to own a team in the NWSL, investing in the San Francisco-based team, Bay FC, for a record $54 million. This marked the first time a private equity firm had taken a majority stake in a professional sports team. More recently, Carlyle partnered with the Seattle Sounders FC to buy the Reign FC, valuing the team at $58 million.

The Benefits of Private Equity

Private equity investors bring a wealth of resources and expertise to the table. Commissioner of the NWSL, Jessica Berman, notes that institutional capital can infuse additional capital into the league, allowing teams to grow and improve. Private equity firms can also share expertise from their other portfolio companies, providing valuable insights and guidance.

The Future of Women’s Soccer

As private equity interest in the sport continues to grow, it’s likely that we’ll see more deals in the future. Disney CEO Bob Iger and his wife, Willow Bay, are reportedly close to acquiring Angel City FC for $250 million, shattering valuation records for a women’s sports franchise.

The Challenges Ahead

While private equity investment brings many benefits, it also comes with its challenges. Commissioner Berman notes that institutional capital is very different from individual owners who have typically carried the stewardship of teams in local markets. The league must tread carefully to ensure that institutional capital is invested in a way that benefits the sport as a whole.

What’s Next for Women’s Soccer and Private Equity?

As the relationship between women’s soccer and private equity continues to evolve, it’s likely that we’ll see more deals in the future. The NWSL is poised to continue growing and improving, with private equity investment providing a significant boost to the league. As valuations continue to spin upward, it’s likely that we’ll see more interest from private equity firms in the sport.

Conclusion

The relationship between women’s soccer and private equity is a unique and exciting one. With private equity investment, the NWSL is poised to continue growing and improving, providing a boost to the sport as a whole. As we look to the future, it’s clear that women’s soccer is an attractive investment opportunity for private equity firms.

FAQs

Q: What is the current state of private equity investment in women’s soccer?

A: Private equity firms have already invested in several NWSL teams, including Bay FC and Reign FC.

Q: What are the benefits of private equity investment in women’s soccer?

A: Private equity investors bring a wealth of resources and expertise to the table, allowing teams to grow and improve.

Q: What are the challenges of private equity investment in women’s soccer?

A: The league must tread carefully to ensure that institutional capital is invested in a way that benefits the sport as a whole.

Q: What is the future of women’s soccer and private equity?

A: It’s likely that we’ll see more deals in the future as private equity interest in the sport continues to grow.

Q: Who are some of the key players in the world of women’s soccer and private equity?

A: Some of the key players include Commissioner Jessica Berman, Sixth Street, Carlyle, and Disney CEO Bob Iger and his wife, Willow Bay.

Q: What are some of the key trends in women’s soccer and private equity?

A: Some of the key trends include the rise of private equity investment in sports, the growing popularity of women’s soccer, and the increasing interest from institutional investors.

Author: www.cnbc.com

Orginal Source link