Private Equity Firms Take Majority Control of National Women’s Soccer League Teams

The National Women’s Soccer League (NWSL) is breaking new ground in the world of professional sports by allowing private equity firms to take majority control of franchise teams. This move sets the NWSL apart from other major U.S. sports leagues, such as the NBA, MLB, NHL, and MLS, which only permit private equity investors to hold passive, minority stakes.

The NWSL’s decision to embrace institutional capital has already led to significant investments in the league. Sixth Street and Carlyle have each struck deals to acquire franchise teams at soaring valuations. Sixth Street made history by purchasing the San Francisco women’s team, Bay FC, for a record $54 million, while Carlyle recently partnered with the Seattle Sounders FC to buy the Reign FC for $58 million.

According to NWSL Commissioner Jessica Berman, the influx of institutional capital is seen as a way to provide additional resources and support for the league’s assets. The investments from firms like Carlyle are expected to help drive growth and enhance the overall quality of women’s soccer.

The recent transactions have also highlighted the increasing value of women’s sports. Revenue from women’s elite sports is projected to surpass the billion-dollar mark for the first time this year, with soccer accounting for a significant portion of that figure. The NWSL’s new media deal, valued at $240 million over four years, further underscores the growing interest and potential in women’s sports.

As private equity interest in women’s soccer continues to rise, the NWSL is proceeding cautiously to ensure that the league maintains its integrity and values. Commissioner Berman emphasized the importance of balancing institutional capital with the traditional ownership model to ensure the long-term sustainability of the league.

The NWSL’s pioneering approach to private equity ownership may serve as a model for other sports leagues grappling with similar decisions. As the landscape of professional sports evolves, the NWSL’s willingness to embrace change and innovation could pave the way for a new era of growth and success in women’s sports.