Interest in women’s sports has seen a significant increase in recent years, leading to substantial commercial growth. Football in the UK serves as a notable example of this trend. This article explores the key areas of commercial expansion in women’s sports and the challenges that come with keeping up with this rapid growth, including potential legal issues.
Sponsorship and media rights
According to Deloitte, revenue in women’s sports primarily comes from commercial sources (55%), such as sponsorships, partnerships, and merchandise sales, followed by broadcasting (27%) and matchday earnings (18%)(1). Brands have realized that consumers view companies favorably when they support women’s sports through sponsorship, creating an opportunity for significant growth in this sector.
Broadcasting rights are a valuable asset for tournament owners, or ‘rights holders,’ who can monetize these rights by licensing them to TV broadcasters and over-the-top platforms. Women’s sports have the potential for substantial growth in broadcasting revenues, as evidenced by recent deals like the WSL’s agreement with BBC and Sky.
The decision to partner with subscription broadcasters or free-to-air broadcasters presents a dilemma for women’s sports organizations, with each option offering unique advantages in terms of revenue and visibility. Finding the right balance is crucial for sustainable growth.
Matchday
Women’s sports organizations are increasingly moving to larger venues to accommodate larger crowds, leading to increased matchday revenues. This strategic shift not only enhances financial sustainability but also fosters greater community engagement.
Investment
Investors are starting to recognize the commercial potential in women’s sports, with notable acquisitions and investments being made in teams and clubs. This trend indicates a growing interest in supporting and growing women’s sports from a financial perspective.
Conclusion
The growing commercialization of women’s sports opens up numerous opportunities for revenue generation and long-term growth. As the audience for women’s sports expands and more sponsors and broadcasters show interest, there is significant potential for further economic development in this sector.
Ogier is the leading sports law firm in Ireland, providing advice on a range of challenges faced by sports organizations. For more information, visit www.ogier.com/sports.
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