Priced low, growing fast: women's sports draw smart money

March 30 : Wealthy investors are increasingly turning to women's sports as a rare opportunity to tap into a fast-growing market at lower valuations, favoring strong returns over the high entry costs and limited upside of marquee men's franchises in the NFL or the UK's Premier League.

Once considered underdeveloped, women's sports are gaining traction as rising media rights, sponsorships and viewership create a mix of low valuations and high growth potential.

The U.S. women's sports market is expected to grow at 16 per cent annually, roughly three times faster than men's sports, to generate about $2.5 billion in annual revenue for rights holders by 2030, according to consulting firm McKinsey.

The gap in growth, also fueled by the emergence of women superstars such as Indiana Fever guard Caitlin Clark, is drawing ultra-high-net-worth investors seeking stronger long-term returns.

"Valuations are growing very rapidly and there is still plenty of room to grow," said Jason Wright, partner at Ariel Investments and a former National Football League executive.

Ariel backs the National Women's Soccer League club (NWSL) Denver Summit, which debuted this year.

ENTRY COSTS RISE

Rising expansion fees and team valuations highlight demand as the league fee for a NWSL team has surged from the $2 million paid to launch Los Angeles' Angel City FC in 2020 to the $165 million put up by the owners of the new Atlanta franchise launching in 2028, according to consulting firm Navigate.

That valuation upside applies to existing franchises as well.

Digital sports media platform Sportico estimates that Angel City is now worth $335 million, up 34 per cent from just over a year ago, when the club's controlling stake was sold to former Walt Disney CEO Bob