The Growing Achievements and Investment Potential of Women's?Sports
The year 2023 brought increased success and attention to women's sports, with the NWSL's impressive $240 million broadcast deal as a prime example of what is possible. However, despite the growing popularity of women's sports, there remains a significant need for increased investment in this field. According to the Women's Sports Report Webinar by Sports Innovation Lab, only 9% of total sports investment is dedicated to women's sports. This glaring investment gap highlights the immense opportunity for savvy businesses to invest strategically in this market.
Expanding Achievements:
Remarkable achievements by female athletes across various sports have recently made headlines. For instance, the World Cup held in Australia and New Zealand generated a staggering $900 million revenue. Tigst Assefa set a stunning world marathon record in Berlin, and the European Solheim Cup team achieved a brilliant victory in Spain, captivating thousands of viewers. Additionally, Coco Gauff's US Open win garnered more viewership than the men's final. Women broke or contributed to one world record and four national records at the recent World Athletics Championships. In a city with numerous major league sports franchises, the New York Liberty (WNBA) stands out as the best-performing sports team in NYC.
The Investment Gap:
Despite these achievements and the increasing viewership and coverage, women's sports still face a significant investment gap. Angel FC serves as an example of what can be achieved, as 30% of their sponsors had never previously sponsored a sports team or event, highlighting the potential of women and girls as a standalone consumer group. However, there remains a substantial disparity in overall investment. For instance, while the Men's Rugby World Cup in France helped the sport receive additional exposure and interest, the Red Roses' match against Canada was not broadcast on network television in the UK despite being offered for free. Instead, the match was posted on YouTube, with 245,000 people watching it live or on demand. The WSL (soccer) is the fastest-growing league in the UK. Its broadcast contract is worth ￡8 million per season; Sky pays around ￡10m to broadcast a single Premier League (men's) match. Also, many clubs have commercial agreements shared across the men's and women's teams; only four clubs in the WSL have their separate commercial agreements.
Reach, Discoverability and Experience
The value of media rights and sponsorships is influenced, in part, by Reach, Discoverability, and Experience (RDE) metrics. A report by the Sports Innovation Lab revealed that over 80% of sports investors expressed an interest in supporting female sports. However, the need for RDE for these sports prevents them from fully capitalizing on this interest. It is intriguing to note that the results are impressive when female sports events receive the exposure they deserve.
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FIFA's report outlined record-breaking viewership in Australia and New Zealand during the Women's World Cup, with a global TV audience surpassing one billion. This figure is especially remarkable considering the challenges of different time zones and other factors. The US Open Women's final recorded a viewership of 3.5 million on ESPN, compared to 2.5 million for the men's final, representing a 92% increase from 2022. This demonstrates how women's sports, as a standalone product, can deliver substantial viewership, benefiting broadcasters, brands, and sponsors. In the UK, audiences spent over 10 hours watching women's sports, while the Solheim Cup and Women's Six Nations achieved viewership records with a 30% increase. Over the next decade, viewership of women's sports is projected to grow twelvefold, surpassing the growth rate of men's sports. Given the significantly lower investment required for top-tier women's sporting events, this presents a compelling ROI opportunity.
Appealing to the Gen Z Audience:
Sports organizations have been striving to appeal to a significant portion of Generation Z over the past five years. It is becoming increasingly evident that women's sports have the potential to attract this demographic and provide another compelling reason to invest in this sector. A survey found that 62% of Gen Z fans would watch more women's games if they were easier to find. As this demographic gains financial independence and empowerment in the next decade, women's sports will reach a more diverse audience, resulting in increased popularity. Social media platforms with predominantly female users, such as TikTok, Snapchat, Pinterest, Instagram, and YouTube, can enhance engagement, improve marketing efforts, and drive viewership. Investors, sponsors, and broadcasters can tap into this powerful consumer group by offering compelling, authentic, female-oriented, digital-first content to drive engagement and revenue.
Leveraging Technology to Reach the World's Most Powerful Consumers:
Broadcasters and content creators need help managing budgets to create additional content and live streams to showcase these sports. However, technological advancements in remote and cloud-based live and post-produced production, virtual production, and advertising solutions offer cost-effective means of supporting commercial opportunities for women's sports to expand their reach. Women drive up to 85% of purchasing decisions, making them the world's most powerful consumer group. By utilizing localized coverage of global broadcast feeds through commentary and virtual advertising, a more comprehensive selection and diversity of products and brands that appeal to women can be made available. This presents a unique revenue potential to unlock for federations, leagues, teams, broadcasters, and content creators. With the growing domestic and international audiences for women's sports, it is the perfect time for investment across the corporate landscape.
At LCA Ltd, we recognize women's sports' immense value and potential. While we are committed to supporting these sports and celebrating the achievements of female athletes, we also understand the significant commercial advantages and opportunities to be gained from investing in this sector. From a business perspective, investing in women's sports is a strategic move, particularly considering the challenges and rising costs associated with male-dominated sports. Women's sports offer a lower barrier to entry, boast a growing viewership base, possess substantial consumer power, and appeal to diverse audiences, making them an attractive investment opportunity. LCA is well-equipped to assist organizations in developing content and production strategies to foster growth within women's sports.