The Untapped Goldmine: How Women's Sports are Revolutionizing the Industry

The WNBA's rising popularity and financial success have exposed the shortsightedness of certain sports owners who once dismissed women's sports as a lost cause. As the league's All-Star Game becomes one of the most compelling events of the Olympic summer, the narrative is shifting, and the potential of women's sports is being recognized as a lucrative investment opportunity.

Unlocking the Untapped Potential of Women's Sports

The Folly of Undervaluing Women's Sports

For years, certain sports owners like James Dolan of the New York Liberty treated the WNBA as an inconvenient obligation, whining about having to contribute to its marketing and sabotaging it with sneers. Dolan's decision to move the Liberty to a smaller arena and eventually sell the team for a fraction of its current value exemplifies the short-sightedness that has plagued the industry. These owners failed to recognize the inherent value and growth potential of women's sports, dismissing them as a lost cause.However, the tide is turning, and the WNBA's success is a testament to the folly of this mindset. The league's All-Star Game has become one of the most compelling events of the Olympic summer, and the Liberty's recent record-breaking revenue from a single game featuring Caitlin Clark and the Indiana Fever demonstrates the untapped potential that these owners overlooked.

The Rise of Savvy Investors in Women's Sports

In contrast to the legacy owners, a new generation of investors is recognizing the immense value in women's sports. Alexis Ohanian, the co-founder of Reddit and husband of Serena Williams, has been at the forefront of this movement. When Ohanian became the co-founder and principal investor in Angel City in 2020, many doubted his decision, but his foresight has been vindicated.Angel City has been generating around million in annual revenue, the highest in the nascent National Women's Soccer League. Ohanian's investment has not only proven to be a financial success but has also set a new standard for how women's sports should be supported and marketed. By investing in a trust for his and Serena's children, Ohanian has ensured that they are the youngest owners in professional sports and are now multimillionaires.

The Changing Landscape of Women's Sports Investments

Ohanian's experience stands in stark contrast to the attitudes of the legacy owners who treated women's sports as a "charity-pity" rather than a viable business opportunity. These owners, as Ohanian describes, had created a "Stockholm syndrome of mediocrity," where they believed that people simply didn't want to watch women's sports.However, Ohanian saw the potential in women's sports, recognizing that with proper marketing and resources, the audiences for events like March Madness, the World Cup, and the Olympics could become habitual. This insight has proven to be accurate, as the WNBA is set to bring in .2 billion in a new media rights deal, and Deloitte predicts that revenue generated by elite women's sports will surpass billion for the first time by the end of 2024.

The Lessons Learned from the WNBA's Journey

The WNBA's journey has been a cautionary tale for the sports industry. The league's early struggles, with five of the original eight teams now defunct, were largely due to owners who were unwilling to fund, market, or wait for the league to grow. They saw "no upside" in the WNBA, a mindset that ultimately became the profit killer.In contrast, the NBA's long-term investment approach, led by the visionary David Stern, has paid off. The WNBA's success is not just a testament to the league's growth but also a reflection of the changing attitudes towards women's sports. As Ohanian has observed, "The market is speaking loud and clear, and folks catch up real quick when dollars are involved." The industry is now waking up to the immense potential of women's sports, and those who fail to adapt risk being left behind.