San Diego Wave

Private Equity Firms Increasingly Invest in NWSL, Signaling League’s Growing Value

NEW YORK – A surge of private equity investment is reshaping the National Women’s Soccer League (NWSL), making ownership more accessible and fueling rapid​ expansion. Once prohibitively expensive, stakes ​in top NWSL teams are now ⁣attracting a diverse range of investors eager to capitalize on the burgeoning popularity‍ of women’s sports.

Financial advisor‌ John Eisler, who has facilitated recent NWSL ownership transactions, notes‍ the changing ⁤landscape.He assisted controlling owners in ‌forming ownership ‍consortiums, securing co-investment, including from private equity sources, ​in multiple deals.⁤ “The entry point is far more accessible. One percent of an NFL team might cost $70 million. Whereas‍ $70 million just a few years‌ ago could buy an NWSL franchise, today, you could buy⁢ 30 percent of the most‌ valuable team with that money,” Eisler said.

The influx of capital is evident in the growing list of private equity firms⁤ investing in the league.Angel‍ City FC ‌investor Kara Nortman’s Monarch Collective holds minority investments in three NWSL teams: Angel City FC, ⁤San Diego Wave, and Boston Legacy. Dallas-based Arctos Partners, a multi-billion-dollar fund⁣ with holdings in MLB teams like the Los Angeles Dodgers, Chicago Cubs, and Houston Astros, and NBA teams ⁢including the⁢ Golden State Warriors, sacramento Kings,⁢ and Utah Jazz, owns⁢ minority stakes in the Portland Thorns and Utah Royals. Ariel Investments​ launched Project Level, a dedicated women’s sports fund, and invested in the Denver franchise in February.

“The checks are smaller and the fundraising is more approachable,” Eisler explained. “It’s why funds like Monarchs and Ariels ‌can be ‍so nimble; they don’t need to raise $3 billion ⁢to participate.” ‌

The league’s new rolling bidding process is ⁤expected to attract even more investors as new franchises join the NWSL. Eisler emphasizes that much of the investment is “mission-driven,” with investors believing in the future of⁢ women’s sports and seeking to support its growth.

“They’re seeking returns,​ but they also want to help‍ shape the ⁤league’s growth, bringing their expertise and resources to accelerate that growth while benefiting from it,” Eisler said. “These funds recognise that women’s sports are different from men’s, ⁤from the fan base to spending habits, and they see tremendous upside ahead.”