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Women’s Sports: A Growing Asset Class with Unmatched Potential

The sports industry is increasing becoming a lucrative asset class, within the Sports as an Asset Class a new frontier is emerging that promises unprecedented opportunities for investors: women’s sports. This article explores the burgeoning investment potential in women’s sports, highlighting key factors such as the surge in attendance, the increasing value of media rights, and the rise of streaming platforms that enhance monetization. We will delve into the drivers of this growth, the unique challenges women’s sports face, and the substantial returns on investment that can be achieved. 

The Unprecedented Growth of Women’s Sports

Many analysts believe that women’s sports will be among the biggest opportunity for investors over the next few years as attendance continues to rocket up and fan interest grows. The US Women’s National Soccer Team (USWNT) is a shining example of the success and potential within women’s sports. Known as “probably the most successful women’s soccer team ever,” The USWNT has achieved remarkable success on the field and has also played a significant role in boosting the visibility and popularity of women’s sports globally. Their wins at World Cups and Olympic Games have inspired millions and have set the stage for increased investment in women’s sports​​​​.

The Investment Potential

The increasing popularity of women’s sports is evident in the rising attendance at games and events. This surge in fan interest has huge upside potential for investors. Sponsorship deals, broadcasting rights, and merchandise sales are only some of those areas where revenues are swelling. Companies are beginning to recognize the value of associating their brands with women’s sports, leading to lucrative sponsorship agreements and advertising deals​​​​.

However, the challenge for women’s sports lies in finding a niche that allows them to thrive without directly competing with men’s sports. According to Berndes, that has been the key to long-term sustainability: Women’s sports need to create their space in the crowded calendar of sports if they are to maximize the number of viewers and fan engagement.

The Role of Streaming Platforms

One of the most promising developments for women’s sports is the advent of streaming platforms. Traditional broadcast networks often seem to nudge women’s sports out of place in favor of more established men’s sports. Streaming platforms are, however, taking a more flexible and inclusive approach; they represent an avenue through which niche sports, including women’s sports, can leverage monetization from the fan base.

Streaming platforms allow fans to access live games, highlights, and exclusive content, creating a more personalized and engaging experience. This shift not only increases visibility for women’s sports but also opens up new revenue streams through subscription models, targeted advertising, and partnerships with brands looking to reach a diverse audience.

A Growing Fan Base

The fan base for women’s sports is expanding rapidly. Young girls and boys alike are growing up with female sports icons, and the representation of women in sports media is improving. Social media has been highly instrumental in giving voice to women athletes and building community among the fan base. These are some of the factors that lead to a more engaged and loyal fan base, which really can help ensure long-term success for any sports venture.

The Path Forward

Investing in women’s sports is not just a financial opportunity; it’s a chance to support a movement towards greater equality and representation in sports. As the popularity and visibility of women’s sports continue to rise, the potential for significant returns on investment becomes increasingly clear.

For investors looking to capitalize on this burgeoning market, it’s crucial to stay ahead of trends, understand the unique dynamics of women’s sports, and recognize the value of aligning with a movement that promotes diversity and inclusivity. By supporting women’s sports, investors can contribute to the growth of a vibrant and exciting asset class that is poised to reshape the sports industry​​​​.

Conclusion

Women’s sports represent an untapped asset class with immense growth potential. With increasing attendance, the rise of streaming platforms, and a growing fan base, the future looks bright for women’s sports. This is the biggest opportunity for investors in the coming years. By strategically investing in women’s sports, investors can not only achieve significant financial returns but also support the advancement of gender equality in the sports world​​​​.

About the Author

Brett M. Johnson is the founder and CEO of Benevolent Capital, founder and partner of Fortuitous Partners, and co-founder and chairman of Rhode Island FC. He holds a bachelor’s degree from Brown University and an MBA from Pepperdine University’s Presidential/Key Executive program, with additional leadership training from Harvard Business School’s President’s Leadership Program in 2014. Brett is an active member of the Young Presidents Organization.

*Disclaimer: The information provided is for informational purposes only and should not be construed as financial or investment advice. Always consult with a qualified financial advisor or wealth manager before making any investment decisions.

References

• S&P Global. “Sports Ownership Shifts from Trophy Asset to Lucrative Investment.” Available at: spglobal.com.
• S&P Global. “Turning Moments into Movements: Women’s Sports Olympics Momentum and the Opportunities for Investors and Sponsors.” Available at: spglobal.com.