In the intricate fabric of investments, while the appeal of high-risk, high-reward ventures like cryptocurrency remains undeniable, the enduring and sustainable returns promised by women’s sports demand recognition.
Destiny Washington, an Associate Manager at Wasserman’s The Collective, recently authored an insightful piece on TechCrunch titled “Women’s sports investment deserves equal consideration as tech.” In this article, Washington delves into a captivating comparison. She paints a hypothetical scenario where the value of women’s sports leagues, initially estimated at an impressive $32 billion, takes a plunge to an $8 billion deficit.
This vivid illustration triggers contemplation on the potential outcomes of such investments. Indeed, the figures resonate with trends seen in the cryptocurrency market. Despite this striking resemblance, the volatile crypto sector continues to attract investments, while women’s sports, despite its potential, struggles to command comparable attention.
Undeniably, the future of cryptocurrency is evolving, and high-risk assets have their place in the investment landscape. However, in achieving a balanced portfolio, stability is a cornerstone. Women’s sports, continually appreciating in value, offer a steady growth avenue that contrasts starkly with the unpredictable crypto sector. Despite the evident opportunities, a hesitation endures when it comes to investing in women’s sports, a domain that has repeatedly proven its worth.
A comprehensive study orchestrated by The Collective, a Wasserman division, in partnership with RBC, titled “The New Economy of Sports,” presents empirical data and persuasive arguments that underscore the immense potential of investing in women’s sports.
Key Insights from the Wasserman Collective & RBC Study:
- The Striking Reality of the Wage Gap: Professional women athletes, despite their exceptional dedication and prowess, often earn only 1/21st of their male counterparts. While strides have been made in certain sports like tennis, substantial gender disparities still persist, defying the athletes’ skills and performance.
- Challenges Unique to Female Athletes: Factors such as pregnancy, childbirth, and the natural progression of age impose additional economic obstacles on female athletes, leading to a significant erosion in their career earnings. Consequently, women often rely more heavily on sponsorships and endorsements compared to their male peers.
- Advocating Fan and Brand Engagement: Women athletes consistently outperform expectations in terms of fan and brand engagement. However, a surprising 90% of sponsorship funds gravitate towards male athletes. The prevalent compensation model, tied to audience size, often neglects the distinct value proposition that women athletes bring to the table.
- An Untapped Audience for Women’s Sports: The notion that women’s sports are niche is a misconception. An impressive 86% of sports enthusiasts express a keen interest in women’s sports, a demographic encompassing both genders. These enthusiasts tend to be younger, more affluent, and better educated compared to those predominantly following men’s sports.
- Beyond the Game – A Catalyst for Social Change: Women’s sports have evolved into robust platforms for advocacy and activism, establishing their athletes as global change agents. Notably, 75% of their followers believe that sports teams and athletes should vocally support social causes. Moreover, fans of women’s sports exhibit an 89% higher inclination towards engaging in social action when motivated by their favorite athletes.
- Financial Impetus: Contrary to outdated beliefs, female athletes offer unparalleled brand value and business impact, courtesy of their profound connections with fans. Instead of being transient investments, they signify enduring, exponential growth, projecting higher returns over extended periods.
This aligns seamlessly with broader trends in women’s sports, spotlighted by the findings of the Nielsen Sports report titled ‘The Ascendance of Women’s Sports.’ This comprehensive study, spanning eight key markets, unveils that 84% of sports enthusiasts showcase profound interest in women’s sports. Furthermore, gender-balanced engagement stands at 51% male viewership. Within these markets, 45% of the general populace expresses willingness to attend live women’s sporting events, while an equal 46% convey a desire to watch more if women’s sports gain accessibility on free-to-air television. Moreover, the report emphasizes untapped growth potential among those presently uninterested in women’s sports, with 38% of respondents from this group indicating potential interest upon exposure.
Stuart McKinnon, President, NXXT Golf & CEO, MetaTech Capital Partners
“I take pride in being involved in a movement that acknowledges the immense potential of women’s sports. Women’s golf encapsulates untapped excellence, where skill and commitment create compelling stories. This investment drives diversity, worldwide expansion, and positive sports transformation. The rising interest resonates with our brand’s path. Observing our golfers’ unwavering dedication, I have strong belief in their journey. We’re magnifying their stories and playing a role in this impactful evolution.”
This underlines a substantial opportunity. Notably, brands aiming to associate with women’s sports should take note, as a significant three-quarters of those interested in women’s sports can readily recall at least one associated brand. Impressively, 63% of individuals advocate for brands to invest in both women’s and men’s sports, underscoring the commercial expansion potential within women’s sports holistically.
