Can women's sport be commercially successful off the pitch? | BBC News

Key Concepts

• Growth of women's sports revenue
• Commercial viability of women's sports
• Impact of major sporting events
• Fan demographics and engagement
• Merchandising and licensing opportunities
• Investment in women's football
• Sustainable business models for women's teams
• Role of female leadership
• Changing revenue streams in women's sports
• Societal impact of women's sports

Growth and Commercial Viability of Women's Sports

• Women's sport is experiencing meteoric growth, with the Women's Rugby World Cup selling over 300,000 tickets (double the previous tournament) and the European Championships in Switzerland attracting over 650,000 fans.
• The elite level of women's sport is forecast to bring in $2.35 billion this year, more than triple the revenue from three years prior. This growth is driven by match day sales, broadcast rights, and commercial revenue like sponsorship deals.
• Flagship events like the Olympics and World Cups have turned individual athletes into social media superstars, attracting brands seeking authenticity and new audiences. Elona Mahar (rugby) has over 5 million Instagram followers, and Simone Biles (gymnastics) is a household name.
• Despite the growth, a significant income gap persists between top-paid female and male athletes. Cristiano Ronaldo earns more than seven times the top-earning female athlete, Coco Gauff. Four of the top five highest-paid female athletes play tennis, while the men primarily play team sports.
• Women's basketball and football (soccer) generate the most revenue, with North America and Europe being the biggest markets.

Expert Insights: Zoe Burton (Deloitte)

• In 2024, women's sport generated $1.88 billion in revenue, a 240% increase since 2023. The biggest increase was in commercial and match day revenue.
• This growth is attributed to sports organizations having more data on their fans, allowing them to tell a compelling story to brands and secure more lucrative contracts.
• Major events are crucial for increasing visibility, driving participation, and fostering growth across sports and geographies. Attendance records are consistently being broken at these events.
• Deliberate action is needed after major events to drive domestic success for leagues and clubs, ensuring ongoing revenue growth and sustainability.
• Women's sports fans are generally younger and more female. Female fans are more likely to follow individual athletes and be influenced by their endorsements.
• Creating authentic brand opportunities utilizing athletes is key to driving commercial viability.
• Women's sports events often attract families and larger groups of friends, necessitating enhanced experiences.
• Merchandising and licensing opportunities are significant, as females drive 70-80% of household decisions and purchase merchandise more frequently than men (1.7 items per year vs. 1 item every three years).
• Asia and Australia are identified as regions with significant growth potential, particularly driven by events like "The Matildas effect" (Australian women's soccer team).
• The investment into "The Hundred" cricket competition in the UK, where 49% stakes of the franchises have been sold for over 500 million pounds, highlights the significant role of women's teams in the overall fan experience.
• A "virtuous cycle" exists between on-pitch performance, grassroots participation, and elite development. Investment is needed across all areas for sustained success.

Investment Perspective: Vitto Javina Raina (Mercury 13)

• Mercury 13 aims to invest $100 million in women's football teams across Europe and Latin America.
• Women's football has been undervalued for decades, and Mercury 13 seeks to capitalize on the increasing fandom and improving product on the pitch.
• The company focuses on building women's football clubs that appeal to a new audience.
• Having women in decision-making positions is crucial for understanding and serving the needs of female athletes and fans.
• Investment is used to build sustainable business models for women's football teams, which have historically relied on men's teams, federations, or government subsidies.
• Mercury 13 has partnered with Abony Sports, a private equity fund, to build a portfolio of clubs, primarily in the top five European markets (Italy, Spain, UK, France, Germany).
• The goal is to acquire majority stakes and resource the clubs to become commercial engines that can sustain growth independently.
• Traditional models for building profitable football businesses may not apply to women's football. Broadcasting deals are smaller, and sponsorships are evolving into more founding-type partnerships.
• Mercury 13 acquired FC Como Women in Italy and rebranded the club, rebuilding its fundamental elements to drive commercialization. Revenue generated is reinvested in on-pitch performance.
• The company is optimistic about the potential for women's sports to drive societal change and believes that more women will play, watch, and engage with sports in the future.
• The focus is not necessarily on surpassing men's football in size but on realizing the vast potential for women's sports to reach millions of women worldwide.

Synthesis/Conclusion

Women's sports are experiencing significant growth in revenue, driven by increased fan engagement, strategic commercial partnerships, and the impact of major events. While challenges remain, particularly in closing the income gap with men's sports, the future looks promising. Key strategies for continued success include leveraging data to understand and engage fans, creating authentic brand opportunities with athletes, investing in grassroots development, and building sustainable business models for women's teams. The perspectives of both a sports consultancy expert and an investment firm highlight the multifaceted approach needed to unlock the full potential of women's sports and drive lasting societal impact.