UK (Commonwealth) _ Strong women are actively participating in the game, and sponsors and investors are taking notice, finding opportunities to get extra earnings. Hence, more money is also entering the game unprecedentedly.
The sport of women’s football is at a turning point, with new promising players, taking charge of the top positions. What then might the financial future bring? Can women’s football grow to be a significant industry?
According to Deloitte, Women’s Super League (WSL) clubs made £48 million in income in the 2022–2023 season, a 50% increase from the previous year. A new £45 million deal was reached this week for Barclays to continue serving as the league’s title sponsor.
It is the first contract signed by Women’s Professional Leagues Limited (WPLL), the WSL’s new firm that has taken over the management of the WSL and Women’s Championship from the Football Association, and it is double the previous contract.
However, as women’s football finance specialist Dr. Christina Philippou noted, this is still a very young sector. “Every club’s profits are steadily declining, and player salaries are accounting for a larger portion of spending. Both good and negative things come from that, Philippou added.
It’s beneficial for both players and the game as a whole since it highlights how dynamic it is. Obviously, that’s costing clubs more money, which is the bad news.
Therefore, even if their sales are rising, their costs are also rising, and they are rising faster than their income. Although “normal” in football, Philippou claims that start-up projects “tend to make losses” and are not financially sustainable.
However, there are good reasons to exercise caution, as demonstrated by the fact that Reading, a former WSL team, fell to the fifth division in the Women’s Championship this season due to financial difficulties.
Women’s football is becoming more and more popular, and men’s teams all around the world are starting to take note. All but two of the 23 clubs competing in the Women’s Championship and WSL are connected to men’s teams.
Both men’s and women’s teams are owned by clubs like Manchester United, Arsenal, and Tottenham. Others, though, are attempting to carve out their own route. Both London City Lionesses and Durham WFC are privately owned and do not have the support of a men’s team.
Durham is a stand-alone establishment, but London City is a part of a women-only multi-club concept owned by American entrepreneur Michele Kang, who also owns Lyon and Washington Spirt. A new investment entity has developed that is dedicated to women’s football in the interim.
What are the benefits and drawbacks of various ownership structures?
WSL revenue growth can be partially attributed to the financial and resource support that men’s football gives its women’s clubs, which enables them to expand more quickly.
Philippou gives the example of Arsenal. The women’s team has access to the same marketing tools as the men’s team and frequently plays home games at Emirates Stadium.
Their revenue has significantly increased, and a major contributor to that is their matchday revenue from playing games at the Emirates. She stated that you are unable to do so if you are not a member of a men’s club.
However, there may be a cost to progress. There is still a big disparity in resources throughout the league, despite the fact that all of the clubs are expanding.
With Reading’s downfall, worries that women’s football may become overly dependent on men’s football have grown. Though, understandably, for a sport still in its infancy, there is also a sense of caution about the dangers and difficulties that lie ahead.
Philippou declared, “There is a lot of potential.” Currently, investing in women’s sports offers a higher return on investment than in men’s sports.
However, that must continue to expand and be maintained in order for women’s football to pass this developmental stage and enter a more developed league.
Women’s football is here to stay and will only get bigger. Although it’s not simple, now is the ideal time for investors to enter the market. The environment surrounding women’s football is still delicate, and there are still a lot of things we need to develop.
