Why Willow Bay Invested in Angel City FC | The Deal

Key Concepts

• Freedom of Speech and Press: Central to academic institutions like USC Annenberg, encompassing academic freedom, the right to teach, research, and study without interference.
• Athlete as Communicator: The evolving role of athletes in controlling their own narratives and brands through media creation and ownership.
• Athlete-Driven Media: The academic study on athletes as creators, owners of IP, and monetizers of their content, reshaping the media and sports storytelling ecosystems.
• Double Bottom Line: A business model that prioritizes both financial returns and positive community impact.
• Community Asset: Viewing sports franchises as valuable resources for their communities, with embedded social impact.
• NWSL (National Women's Soccer League): The professional women's soccer league in the US, its growth, challenges, and future strategies.
• Talent Pipeline: The importance of nurturing and developing talent, both on and off the field, to ensure the growth of women's sports.

USC Annenberg and Free Speech

Willow Bay, Dean of the USC Annenberg School for Communication and Journalism, emphasizes that freedom of the press and free speech are core to the institution's mission. This includes academic freedom, which protects faculty's ability to teach, research, and study without interference. Annenberg is not an "ivory tower" but is deeply connected to its industries. Current events, such as student protests or policy letters from the Department of Education, directly inform classroom discussions. Bay notes that students are "hungry" for these discussions and that the school aims to create spaces for thoughtful engagement with complex issues, especially in an era where outrage is commodified and discourse is often reduced to shouting.

The Evolution of Sports Media and Athlete Influence

Alex Rodriguez (ARod) recalls being inspired by the 1990s NBA show "Inside Stuff," hosted by Willow Bay and Ahmad Rashad, which he credits with sparking his passion for the NBA. Bay shares that her first day on the job was the day Magic Johnson announced his HIV diagnosis, a profound moment that signaled a cultural journey alongside the sports one. Former NBA Commissioner David Stern's vision for "Inside Stuff" was to expand the fan base, particularly to young people and women, and to tell players' stories off the court. This show was a precursor to the current era of the "athlete as communicator in chief," where athletes control their own brands.

ARod reflects on how "Inside Stuff" changed his perspective on media as an athlete. He initially approached media with fear, lacking the tools to engage effectively. However, he came to understand media as a powerful ally. Bay highlights a recent academic study from USC Annenberg on "athlete-driven media," which demonstrates how athletes as creators and owners are reshaping the media and sports storytelling ecosystems. This phenomenon is driving billions of dollars in value, fostering innovation through new platforms and storytelling formats, and placing decision-making authority directly in the hands of athletes.

Angel City FC: A Mission-Driven Investment

Willow Bay discusses her involvement with Angel City FC, a professional women's soccer team. She describes it as a "phenomenal story" at the intersection of sports and culture, with a mission to drive equity on and off the pitch. Bay, along with her co-owner and husband Bob Iger, acquired the team for approximately $250 million. The decision was made quickly, grounded in Bay's prior experience teaching a sports immersion class where she annually took students to visit Angel City, emphasizing the importance of centering women's sports.

The business model of Angel City FC is built on a "double bottom line," integrating community impact from the outset. A unique sponsorship model directs 10% of sponsorship dollars directly into the community. By the time Bay and Iger acquired the team, Angel City had already invested roughly $3 million in the community, providing nearly 3 million meals through partnerships with DoorDash and Sprouts. Bay views Angel City as a "community asset" and a "jewel in the sports universe of Los Angeles," with a clear path towards profitability while maintaining its community-centric core.

Ownership Perspectives: Community and Profitability

Alex Rodriguez, an owner of basketball teams in the NBA and WNBA, shares his perspective on sports ownership. He echoes Bay's sentiment that sports can transform communities, noting how a winning team can uplift a city's morale. He emphasizes the importance of empathy for athletes and understanding the challenges they face, especially in the current social media landscape.

Bay outlines her key deals and priorities as an owner of Angel City FC. Beyond the acquisition itself, she highlights the investment in a new, state-of-the-art training facility for the athletes, aiming to set a new standard for women's sports. She also focuses on the sporting side, including hiring a new General Manager and Head Coach, with the ultimate goal of bringing a championship to Los Angeles. Bay stresses the need for significant investment in women athletes to support their performance and ensure they can compete at the highest level.

Navigating the NWSL Boardroom

Bay describes her style as a board member in the National Women's Soccer League (NWSL). She notes that the league has many new owners with diverse and impressive perspectives. Her initial focus is on media partnerships, new deals, and aligning marketing and storytelling strategies with players, teams, and the league. She acknowledges the spirited discussions and the breadth of expertise brought to the table, often from outside the traditional sports world.

Key priorities for the NWSL, according to Bay, include maintaining its status as the best women's soccer league globally. This is achieved by ensuring the league remains the top destination for players through competitive salaries and robust support systems, including training facilities and technical staff. Bay also emphasizes the critical importance of media rights deals and driving viewership, acknowledging that even the NBA faces similar challenges in optimizing platform distribution.

Promoting Representation and Growth

In a discussion about representation in sports ownership and executive roles, Bay and ARod address advice for aspiring women and people of color. Bay states that "the doors are wide open" and encourages them to enter. She stresses the responsibility of those already in these positions to create welcoming, productive environments for learning and growth. Bay believes there is "massive growth potential ahead" for women's sports, requiring a robust talent pipeline to propel this expansion.

Bay reflects on her experience as an owner, noting that it has been a continuous learning process. She has had the privilege of working with commissioners and media partners, but being in the owner's room has presented fast-paced and intense challenges. She expresses gratitude for the opportunity to still be learning on the job at her age.

Rapid Fire: Deal Making and Business Philosophy

The conversation concludes with a rapid-fire segment:

• Deal Making Style: Bay describes hers as "Deliberate."
• Gut vs. Data: Bay chooses "Gut."
• Dream Deal Making Partner: Both Bay and ARod name Bob Iger.
• Best Business Advice: Bay advises, "Don't squeeze your partner dry. Leave something. Let everybody walk away from the table with their heads held high." She also suggests starting negotiations closer to the desired outcome rather than at extremes to save "wear and tear on everybody."
• Worst Advice: Bay shares that she was once advised to change her name to be taken seriously in business.
• Deal Wish: ARod humorously wishes he had pursued every NBA team that came on the market.
• Favorite Interview (NBA Inside Stuff): Bay states they were all her favorites and she loved each one the same.
• Hype Song: Bay's is Beyoncé's "If I Were a Boy," with the Leslie Powell, Angel City walk-on song "Here They Come" as a close second.
• One Sport for Life: Bay chooses a tie between soccer (women's soccer) and basketball, with basketball edging out slightly.
• Championship Prediction: Bay confidently states Angel City will win a title.
• First Action After Winning Title: Bay plans to go to Disneyland.

Synthesis/Conclusion

This discussion highlights the interconnectedness of media, sports, and business, with a particular focus on the evolving landscape of athlete influence and the growing importance of mission-driven ventures in sports ownership. Willow Bay and Alex Rodriguez, from their respective positions as an academic leader and sports owner, offer insights into the challenges and opportunities within these fields. Bay's work at USC Annenberg underscores the critical role of free speech and thoughtful discourse, while her ownership of Angel City FC exemplifies a commitment to community impact alongside financial viability. ARod's reflections on his career and ownership journey emphasize the transformative power of sports and the evolving role of athletes as media creators. The conversation also touches upon the strategic imperatives for the NWSL to maintain its talent superiority and secure robust media deals, while advocating for greater representation and investment in women's sports. Ultimately, the dialogue celebrates the potential for sports to drive both economic growth and positive social change.