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Feb. 4, 2022 — A step towards economic viability in women’s sports
It was announced yesterday that the WNBA was selling some $75 million in equity in the 25-year-old league. Amongst the investors are people you might expect, such as Nike, the owners of the Dallas, Washington, Seattle, Los Angeles, New York, and Indiana franchises, and a couple of former NBA players, Baron Davis and Pau Gasol. Another interesting buy-in comes from former U.S. women’s hockey player Angela Ruggiero.
The big number, however, from this story is $1 billion. That’s the estimated value of the WNBA after this equity sale.
The sale is a groundbreaking step, and a risky one. The WNBA has not expanded since 2008, and has yet to try markets which have been great for women’s college basketball such as Louisiana, central Tennessee, and the San Francisco Bay Area. But the money that was raised through the equity sale is expected to help in brand elevation as well as possible expansion.
The valuation, however, may propel outside entities to take the league more seriously. One criticism which has been levied against the league is that its merchandise had largely been unavailable on a national level. Try to find a high-quality game jersey? Forget it. Most of what is sold are silk-screened polyester tank tops.
It’s expected that Nike will be making higher-quality uniforms to follow on with the City edition jerseys which were introduced last year.
Now, I find it interesting that the WNBA’s capital gain is coming just at the start of the inaugural Athletes Unlimited season; it seems to me that the older league is having to awaken from its 13-year slumber in order to make the necessary changes to become a sustainable long-term business.
I certainly think this is possible. I remember the crowds of 18,000 that jammed into the MCI Center to watch a Washington Mystics team which was destined to win a mere three games in 1998. I remember the large crowds which packed Madison Square Garden to watch the Liberty.
It can happen again, I think.
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