WNBA Gets $75M Capital, New Investors, Eyes Long-Term Transformation Of League
Thursday, February 3, 2022 at 05:48PM By Barry Janoff
February 3, 2022: The WNBA said today it has received the “largest-ever capital raise for a women’s sports property,” featuring new investors and existing WNBA and NBA owners.
The capital was funded via selling equity in the WNBA and was valued at $75 million by commissioner Cathy Engelbert.
The WNBA said the transaction is part of a “multi-faceted financial growth strategy designed to generate new revenue through increased investment in priority areas as part of the league’s long-term business transformation.”
The league said proceeds from this transaction are expected to be used for “brand elevation and marketing; globalization of the WNBA; innovation, digital, and growth of consumer touch-points; and human capital and operational optimization as part of an overall effort to address some of the league’s obstacles to growth and generating new revenue.”
Both the WNBA and NBA Boards of Governors approved the transaction.
WNBA and NBA owners who are part of the investment group include Micky and Nick Arison (Miami Heat), Bill Cameron (Dallas Wings), Ginny Gilder (Seattle Storm), Mark Walter and Eric Holoman (Los Angeles Sparks), Ted Leonsis (Washington Mystics, Washington Wizards), Simon Family (Fever Basketball) and Joe and Clara Tsai (New York Liberty, Brooklyn Nets).
Former players involved include Swin Cash (WNBA legend and current New Orleans Pelicans vp-basketball operations), Baron Davis and Pau Gasol.
Business, sports and entertainment leaders among the equity partners include Michael and Susan Dell, Karen Finerman, Dee Haslam, Linda Henry, Whitney Johnson, James and Heather Murren and Angela Ruggiero.
In addition WNBA Changemaker Nike has strengthened its support by investing in the league.
“We are incredibly fortunate to be able to capitalize on the current momentum around women’s sports and are grateful to the investors who have chosen to support the WNBA in an unprecedented way and to our team governors who continue to invest in the players and teams,” Engelbert said via the WNBA.
“Our strategy is to deploy this capital to continue to drive the league’s brand as a bold, progressive entertainment and media property that embodies diversity, promotes equity, advocates for social justice, and stands for the power of women.”
Nike said its investment “further deepens the company’s support for women’s basketball and enables the WNBA to elevate the marketing and storytelling of WNBA athletes.”
“Women’s sport is one of the best investments, with great potential to impact and grow the next era of basketball,” Sonja Henning, Nike vp-North America league partnerships, said via the company.
“Nike has always been more than a sponsor with the WNBA — we’re a strategic partner. And we’re proud to be part of a movement to redefine the future of sport for a new generation — for WNBA players, fans and girls.”
“Women’s sport is one of the best investments, with great potential to impact and grow the next era of basketball."
According to Engelbert, “Nike’s investment is not just a signal of how powerful the movement around women’s sport is, but signifies its support for the vision of the WNBA and that the time is now to redefine what it means to support women’s basketball.”
This week, the National Women’s Soccer League signed a new CBA with the NWSL Players Assn. that will see a $75 million incremental investment in the league by owners.
Last month, the Premier Hockey Federation women’s pro hockey league unveiled a commitment from its board of governors to invest more than $25 million in direct payments and benefits to its players over the next three years.
That includes more than $7.5 million in salary and benefits for the 2022-23 season and “represents the largest one-time independent investment in the history of professional women’s hockey.”
Among reported new contracts this week include Becky Hammond earning at least a $1 million a year as new head coach for the Las Vegas Aces (owned by Las Vegas Raiders majority owner Mark Davis) and A’Ja Wilson, 2021 WBVA MVP, re-siging with the Aces for two-years for just under $400,000 — both the highest in the league.
According to Engelbert, “Having just completed our historic 25th season, with this access to additional capital, we are setting the WNBA up for a successful future and it represents a sign and signal of the future direction of women’s sports as a whole.”
The 12-team league is scheduled to begin its 26th season in May.
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