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Forbes
02-06-2025
- Business
- Forbes
The NWSL's Most Valuable Teams 2025
When Michele Kang bought the National Women's Soccer League's Washington Spirit in 2022 for $35 million, the price was a shock in a sport whose clubs had historically traded for less than $5 million. Over the past year, however, a slew of transactions have made that deal look like a bargain. Five teams changed hands for at least $58 million, led by Angel City FC at $250 million, and Denver was selected as the NWSL's latest expansion franchise in January for a $110 million fee. Months later, even those revved-up numbers are looking a little sluggish. Valuing the NWSL's teams for the first time ever, Forbes now estimates that all 14 clubs are worth at least $70 million, with an average of $134 million. Angel City leads the way at $280 million—up $30 million from the sale that closed in September as the Los Angeles-based team continues to project growth for its sponsorships, merchandise and ticket sales—and the Kansas City Current are right behind at $275 million as they capitalize on a transformative new stadium. The two clubs have a significant revenue advantage on the rest of the league, with Angel City recording an estimated $35 million in 2024 and Kansas City banking $36 million—while projecting a jump to $45 million for 2025. By contrast, the next-best revenue figure last season was San Diego Wave FC's estimated $24 million, and eight clubs sat at $10 million or below. Still, even the teams near the bottom of the financial standings are on the upswing, and league-wide, the NWSL posted a regular-season attendance record with more than 2 million fans in 2024, or an average of roughly 11,250 per game, up 6% from 2023. Television viewership also surged to a record 18.7 million—five times 2023's total—in the first year of a new package of national media rights deals with CBS, ESPN, Amazon Prime Video and Scripps Networks' Ion. The momentum is attracting a new class of investor to the league. The buyers in the Angel City deal, for example, were Willow Bay and her husband, Bob Iger—who, as CEO of ESPN parent Disney, would seem to have strong insight into the NWSL's viability as a media property. Meanwhile, Portland Thorns FC sold for $63 million in July to Lisa Bhathal Merage and Alex Bhathal, who are also behind the city's WNBA expansion team, and private equity billionaire Lauren Leichtman bought the Wave for a weighted average of $113 million in a two-stage process that wrapped up in October. Then came a deal in April for the Utah Royals, purchased along with MLS's Real Salt Lake and real estate assets for roughly $600 million by billionaire former Utah Jazz owner Gail Miller. In another sign that these acquisitions are not mere vanity or ego, the NWSL has enticed institutional investors. June's $58 million sale of Seattle Reign FC brought in not only MLS team owner Adrian Hanauer but also Carlyle, an investment firm managing $453 billion in assets. And the ownership group of the most recent expansion team to take the field, the San Francisco area's Bay FC, is led by Sixth Street, which has more than $100 billion in assets under management. 'If you're a business person and you look at sports investment as an asset class, I do not actually see a world where it could justifiably be viewed through the lens of DEI and social cause,' NWSL commissioner Jessica Berman recently told Forbes. 'It is the same fundamental business as the men's leagues who have achieved incredible growth via the same exact investments and revenue streams that we have already begun to tap, and in many ways remain untapped. And I think that's why you're seeing the valuations continue to be validated.' For now, NWSL teams' losses remain substantial, often exceeding $10 million annually, according to league insiders, and only the Current expect to break even on an operating basis this year. But even more established sports are not always profitable—for example, Forbes estimates 16 of MLS's 29 teams were in the red last season—and NWSL investors are keeping a startup mindset, focusing on the upward trajectory of women's soccer. One major advantage for the NWSL is that, unlike MLS, the league is widely recognized as the world's best, with a deep roster of elite talent. And the business wins are starting to pile up as well. Over the last year, the NWSL has added blue-chip sponsors including AT&T and Google, and its new national media deals were for $240 million over four years—roughly 60 times its previous fees. The league also has the option of supplementing that package by selling an additional broadcast slate of games, with Mark Lazarus, CEO of Comcast spinoff Versant, recently telling CNBC that he had had talks with the NWSL. League expenses, including production costs and marketing, are eating up most of the TV money, but the NWSL intentionally kept its agreements short. If ratings continue to climb, the league will be able to head back to the negotiating table soon to take advantage—and if that means another major step up in broadcast fees starting in 2028, the league office could start paying out distributions that would make a big difference on teams' balance sheets. 'I only invest in teams and leagues where I believe league-level revenues are going to go up and to the right, heavily driven by media revenue to this point,' says Kara Nortman, who cofounded Angel City FC and is now buying up stakes in other women's teams as a managing partner of investment fund Monarch Collective. 'It's really important to making these businesses work predictably, being able to invest in the player experience, the fan experience, the whole thing.' The NWSL should soon get a sense of just how enthusiastic investors are, with the Houston Dash currently seeking a buyer for a control or minority stake. Given the demand for teams and the scarcity of opportunities, with Denver beating out bidders including Cincinnati and Cleveland in the last round of expansion, some around the sport believe the Dash could sell for significantly more than Forbes' valuation of $86 million. And even as the price tags continue to rise, there is an argument to be made that NWSL teams remain cheap. Forbes values the league's clubs at an average of 8.8 times revenue—lower than in the NBA (11.7x), MLS (9.3x) or the NFL (9x). 'On the men's side, MLS is your newest league of the big leagues, and it's 30 years old,' says Raquel Braun, cofounder of sports consulting firm Mulier Fortis. 'We want this immediate gratification of the same multiples, the same valuations, but the league still has to grow. 'It's building, and it'll get there, and I think it's going to get there faster than some of the male sport counterparts.' The NWSL's Most Valuable Teams 2025 Michael Owens/NWSL/Getty Images Jamie Squire/NWSL/Getty Images Eakin Howard/NWSL/Getty Images Howard Smith/ISI Photos/Getty Image Bill Barrett/Alika Jenner/NWSL/Getty Images Mitchell Layton/NWSL/Getty Images Steph Chambers/NWSL/Getty ImagesJulio Aguilar/NWSL/Getty Images Matt Kelley/NWSL/Getty Images Soobum Im/NWSL/Getty Images Alika Jenner/NWSL/Getty Images Elsa/NWSL/Getty Images To rank the most valuable National Women's Soccer League franchises, Forbes examined recent transaction data and spoke to more than 40 industry insiders, including team and league executives, team owners, investment bankers, advisors and consultants. Revenue figures are estimated for the 2024 season and are rounded to the nearest $1 million. Playoff and non-league games were excluded from the revenue calculations, as were player transfers. Team values include the economics of the team's stadium but not the value of the stadium real estate itself. The valuations similarly take into account ancillary revenue streams that are captured in the team's financial statements, such as income from sponsorships or events at the team's practice facility, without directly measuring the value of those other assets. Expansion clubs in Boston and Denver, which are set to begin play next year, were omitted from the ranking. Additional reporting by Justin Birnbaum and Justin Teitelbaum.
Yahoo
19-04-2025
- Business
- Yahoo
Explained: Are Chelsea Women really worth £200million?
Explained: Are Chelsea Women really worth £200million? Chelsea Women are the most valuable women's team in world football. They were sold for £200million, surpassing the $250m (£188.5m) Willow Bay and Bob Iger paid to buy National Women's Soccer League (NWSL) side Angel City in 2024. Advertisement The only issue with the price Chelsea Women was sold for was that they were bought by their parent company in a move that helped the men's team comply with the Premier League's profit and sustainability rules (PSR) in 2023-24. Chelsea transferred ownership of their women's team to Blueco 22 Midco Limited on June 28, just two days before the 2023-24 accounts were due to be registered, and booked a £198.7m profit from the sale. The £200m sale is now being scrutinised by the Premier League from a fair market value perspective — and the profit Chelsea lodged as a result may be adjusted if they are deemed to have inflated Chelsea Women's price. answers the key questions about the transaction… What can we learn from Chelsea Women's accounts? For the financial year ended June 30, 2024, Chelsea Women generated £11.5m in revenues and made a loss of £8.7m. Advertisement Although a breakdown is not provided in the accounts, it is noted that a significant portion of the £11.5m in revenues comes via TV broadcasting and matchday income and commercial activities. There is not a blanket approach when it comes to valuing a football club, but revenue multiples are the most common method. Given they had revenues of just over £11m in 2023-24, the £200m sale price meant they were valued at more than a 17x revenue multiple. In comparison, when the Glazer family sold a minority stake (27.7 per cent) in Manchester United to Sir Jim Ratcliffe in February 2024 for £1.3billion, that was just over a 10x revenue multiple, which was considered high at the time. 'Football club valuations are notoriously complex, with no one-size-fits-all approach due to the many variables at play — ranging from fanbase and brand image to infrastructure and league-specific factors,' explains Simon Van Kerckhoven, founder of Brussels-based Zurafa Football Capital and former chief operating officer at City Football Group's Belgian side Lommel. Advertisement 'While revenue multiples remain the most common method, benchmarks vary significantly by country and league. In Belgium, for instance, we typically see multipliers between 1.2 and 1.8, rising to around 2.0 in the Netherlands and up to 4.0 in the Premier League — reaching 6 to 10 only for the top six clubs. 'The Manchester United transaction at a 10.6x multiple was already considered an exceptional case. The recent £200m valuation of Chelsea FC Women at an almost 20x revenue multiple is, therefore, highly unorthodox.' What do other industry experts think of the £200m valuation? As you would expect, there has been a mixed reaction. Advertisement 'On first glance, Chelsea Women being valued at £200m might seem quite high for a company with under £15m in revenue last season, but the long-term case for investment in women's football is strong,' Jordan Gardner, a global football club management and investment strategy consultant at Twenty First Group, tells . 'NWSL expansion clubs starting from scratch are selling for well over $100m and are only going up. In comparison, Chelsea have incredible existing brand equity value, and it could be argued that £200m is undervalued when taking into account the upside opportunity leveraging the history and attractive location of the club, alongside the growth of the WSL. 'It will take sustained investment and attention to the women's product — or a joint venture with a sophisticated partner experienced in the women's game — for Chelsea to truly capture the value of that asset.' 'Everyone thinks it's a happy PSR fudge,' explained a source — speaking on the condition of anonymity to protect relationships — involved in the acquisition of football clubs. Advertisement 'Everyone is saying it's a PSR fudge which is: a) an outcome that is a benefit no doubt — none of us are naive — but b) is really disrespectful to the women's game that cannot grow unless it's given appropriate and significant focus.' Laurie Pinto, the founder of Pinto Capital and a veteran of the sports mergers and acquisitions (M&A) industry, believes the devil will be in the details. '£200million is a big number but that's kind of the point,' Pinto says. 'For some investors, these things are about marketing. They want the big brands, they want to hang out with the big names and go to the big matches. 'Chelsea have just signed the first $1million player in the women's game (Naomi Girma) and they have the best address in London. Todd Boehly would be very impressive in meetings and they might win the Champions League. Chelsea are always going to attract a lot more interest than Charlton, for example. Advertisement 'The question will be what assets are you putting into the deal. If it's just the team, that is a stretch. But if it includes their stadium at Kingsmeadow or some long-term access agreement at Stamford Bridge, or wherever the men end up playing, well, the investment gets more attractive.' Another M&A source, speaking on condition of anonymity to protect relationships, has a different view. 'There is no business case for this valuation at all,' they said. 'It's not a tech stock. It's not a company that might cure cancer. What are we even talking about here? None of these teams is even close to making any money. 'There are lots of very well-meaning people in women's football at the moment and I respect them. A £200m valuation for any women's football team makes no sense at all.' How have Chelsea justified the sale price? It is worth remembering that Behdad Eghbali's Clearlake Capital and Boehly, Chelsea's co-owners, are looking to sell a stake in the women's team. Advertisement To help aid this process, Chelsea Women are now operating independently from the men's team and appointed Aki Mandhar, formerly of , as their first-ever dedicated CEO. Valuing Chelsea Women at £200m should, in theory, only help to drive up the price. BDT & MSD Partners, a global merchant bank, has been engaged as a financial advisor on a potential minority investment in Chelsea Women. There are at least two interested parties is aware of, with one being Monarch Collective. Chelsea sources, speaking on the condition of anonymity to protect relationships, have told that ultimately the market will dictate the price and that a competitive process is taking place in regards to who buys the minority stake. Advertisement Chelsea Women are seeking a minority shareholder with expertise to help grow the club, taking advantage of the potential for significant commercial opportunities, as well as creating dedicated facilities and infrastructure. They added that there is interest from multiple parties in a deal that would take Chelsea Women's overall valuation beyond what Angel City sold for last year — something it already is, given the price they sold it to themselves for. If, for example, a company spends £20m on a 10 per cent stake in Chelsea Women, then that will justify the £200m figure that has raised eyebrows. What does the Premier League think? Chelsea's accounts for 2023-24 included a line that stated the sale of their women's team to the parent company is being assessed by the Premier League. Advertisement And as a consequence of the fair market value assessment, Chelsea outlined that 'the conclusion of this process may result in a material change to the gain recognised'. This is not the Premier League choosing to unfairly scrutinise the club, though. The same probe would be made for the other 19 top-flight teams as part of the fair market value regulations, which are laid out in detail in the Premier League's rulebook. How will the Premier League determine if it is fair market value? The first thing to mention is that whether Chelsea inflated the price of their women's team or not will not be decided by an independent panel. Advertisement The Premier League's board, which consists of Richard Masters, the chief executive, Alison Brittain, the chairperson, and three independent non-executive directors (Mai Fyfield, Dharmash Mistry, Matthew Ryder KC), has the ultimate say. However, there are multiple strands to which the information is collected for the board to make its decision. That includes the opinion of an external specialist who will have a view, the league's Databank (a system that includes all the information relating to the clubs' commercial deals and player transfers) and the information Chelsea submit to the league as part of the transaction. This means the board will generally have a wide view from different sources of what the value of a deal should be worth and make a decision based on that. Advertisement Should the Premier League board decide to knock money off the sale price, then it will be detailed in the accounts for the year ended June 30, 2025. Don't Chelsea and the Premier League have previous on associated party transactions? In 2022-23, Chelsea sold two hotels — the Millennium and Copthorne — to a sister company for a combined £76.5m. The Premier League, as it is doing now with Chelsea Women, assessed whether those deals were fair market value. After the 2022-23 accounts had been published, reported how the Premier League had adjusted the value of the sales. And the latest accounts show that — in July 2024 — the league reduced the profit from the hotel sales by £6m. What happens next? If the Premier League decides the sale was not fair market value, then it will be detailed in the next set of accounts, which are not due to be published until next year. Advertisement There will be a note in Chelsea's accounts — as there was this year in relation to the hotel sales — detailing if an adjustment has been made to the price. But if the Premier League is satisfied with the transaction, then there is no need for that to be documented in the accounts. This article originally appeared in The Athletic. Chelsea, Sports Business, UK Women's Football, Premier League 2025 The Athletic Media Company
New York Times
19-04-2025
- Business
- New York Times
Explained: Are Chelsea Women really worth £200million?
Chelsea Women are the most valuable women's team in world football. They were sold for £200million, surpassing the $250m (£188.5m) Willow Bay and Bob Iger paid to buy National Women's Soccer League (NWSL) side Angel City in 2024. The only issue with the price Chelsea Women was sold for was that they were bought by their parent company in a move that helped the men's team comply with the Premier League's profit and sustainability rules (PSR) in 2023-24. Advertisement Chelsea transferred ownership of their women's team to Blueco 22 Midco Limited on June 28, just two days before the 2023-24 accounts were due to be registered, and booked a £198.7m profit from the sale. The £200m sale is now being scrutinised by the Premier League from a fair market value perspective — and the profit Chelsea lodged as a result may be adjusted if they are deemed to have inflated Chelsea Women's price. The Athletic answers the key questions about the transaction… For the financial year ended June 30, 2024, Chelsea Women generated £11.5m in revenues and made a loss of £8.7m. Although a breakdown is not provided in the accounts, it is noted that a significant portion of the £11.5m in revenues comes via TV broadcasting and matchday income and commercial activities. There is not a blanket approach when it comes to valuing a football club, but revenue multiples are the most common method. Given they had revenues of just over £11m in 2023-24, the £200m sale price meant they were valued at more than a 17x revenue multiple. In comparison, when the Glazer family sold a minority stake (27.7 per cent) in Manchester United to Sir Jim Ratcliffe in February 2024 for £1.3billion, that was just over a 10x revenue multiple, which was considered high at the time. 'Football club valuations are notoriously complex, with no one-size-fits-all approach due to the many variables at play — ranging from fanbase and brand image to infrastructure and league-specific factors,' explains Simon Van Kerckhoven, founder of Brussels-based Zurafa Football Capital and former chief operating officer at City Football Group's Belgian side Lommel. 'While revenue multiples remain the most common method, benchmarks vary significantly by country and league. In Belgium, for instance, we typically see multipliers between 1.2 and 1.8, rising to around 2.0 in the Netherlands and up to 4.0 in the Premier League — reaching 6 to 10 only for the top six clubs. Advertisement 'The Manchester United transaction at a 10.6x multiple was already considered an exceptional case. The recent £200m valuation of Chelsea FC Women at an almost 20x revenue multiple is, therefore, highly unorthodox.' As you would expect, there has been a mixed reaction. 'On first glance, Chelsea Women being valued at £200m might seem quite high for a company with under £15m in revenue last season, but the long-term case for investment in women's football is strong,' Jordan Gardner, a global football club management and investment strategy consultant at Twenty First Group, tells The Athletic. 'NWSL expansion clubs starting from scratch are selling for well over $100m and are only going up. In comparison, Chelsea have incredible existing brand equity value, and it could be argued that £200m is undervalued when taking into account the upside opportunity leveraging the history and attractive location of the club, alongside the growth of the WSL. 'It will take sustained investment and attention to the women's product — or a joint venture with a sophisticated partner experienced in the women's game — for Chelsea to truly capture the value of that asset.' 'Everyone thinks it's a happy PSR fudge,' explained a source — speaking on the condition of anonymity to protect relationships — involved in the acquisition of football clubs. 'Everyone is saying it's a PSR fudge which is: a) an outcome that is a benefit no doubt — none of us are naive — but b) is really disrespectful to the women's game that cannot grow unless it's given appropriate and significant focus.' Laurie Pinto, the founder of Pinto Capital and a veteran of the sports mergers and acquisitions (M&A) industry, believes the devil will be in the details. '£200million is a big number but that's kind of the point,' Pinto says. 'For some investors, these things are about marketing. They want the big brands, they want to hang out with the big names and go to the big matches. Advertisement 'Chelsea have just signed the first $1million player in the women's game (Naomi Girma) and they have the best address in London. Todd Boehly would be very impressive in meetings and they might win the Champions League. Chelsea are always going to attract a lot more interest than Charlton, for example. 'The question will be what assets are you putting into the deal. If it's just the team, that is a stretch. But if it includes their stadium at Kingsmeadow or some long-term access agreement at Stamford Bridge, or wherever the men end up playing, well, the investment gets more attractive.' Another M&A source, speaking on condition of anonymity to protect relationships, has a different view. 'There is no business case for this valuation at all,' they said. 'It's not a tech stock. It's not a company that might cure cancer. What are we even talking about here? None of these teams is even close to making any money. 'There are lots of very well-meaning people in women's football at the moment and I respect them. A £200m valuation for any women's football team makes no sense at all.' It is worth remembering that Behdad Eghbali's Clearlake Capital and Boehly, Chelsea's co-owners, are looking to sell a stake in the women's team. To help aid this process, Chelsea Women are now operating independently from the men's team and appointed Aki Mandhar, formerly of The Athletic, as their first-ever dedicated CEO. Valuing Chelsea Women at £200m should, in theory, only help to drive up the price. BDT & MSD Partners, a global merchant bank, has been engaged as a financial advisor on a potential minority investment in Chelsea Women. There are at least two interested parties The Athletic is aware of, with one being Monarch Collective. Chelsea sources, speaking on the condition of anonymity to protect relationships, have told The Athletic that ultimately the market will dictate the price and that a competitive process is taking place in regards to who buys the minority stake. Advertisement Chelsea Women are seeking a minority shareholder with expertise to help grow the club, taking advantage of the potential for significant commercial opportunities, as well as creating dedicated facilities and infrastructure. They added that there is interest from multiple parties in a deal that would take Chelsea Women's overall valuation beyond what Angel City sold for last year — something it already is, given the price they sold it to themselves for. If, for example, a company spends £20m on a 10 per cent stake in Chelsea Women, then that will justify the £200m figure that has raised eyebrows. Chelsea's accounts for 2023-24 included a line that stated the sale of their women's team to the parent company is being assessed by the Premier League. And as a consequence of the fair market value assessment, Chelsea outlined that 'the conclusion of this process may result in a material change to the gain recognised'. This is not the Premier League choosing to unfairly scrutinise the club, though. The same probe would be made for the other 19 top-flight teams as part of the fair market value regulations, which are laid out in detail in the Premier League's rulebook. The first thing to mention is that whether Chelsea inflated the price of their women's team or not will not be decided by an independent panel. The Premier League's board, which consists of Richard Masters, the chief executive, Alison Brittain, the chairperson, and three independent non-executive directors (Mai Fyfield, Dharmash Mistry, Matthew Ryder KC), has the ultimate say. However, there are multiple strands to which the information is collected for the board to make its decision. That includes the opinion of an external specialist who will have a view, the league's Databank (a system that includes all the information relating to the clubs' commercial deals and player transfers) and the information Chelsea submit to the league as part of the transaction. Advertisement This means the board will generally have a wide view from different sources of what the value of a deal should be worth and make a decision based on that. Should the Premier League board decide to knock money off the sale price, then it will be detailed in the accounts for the year ended June 30, 2025. In 2022-23, Chelsea sold two hotels — the Millennium and Copthorne — to a sister company for a combined £76.5m. The Premier League, as it is doing now with Chelsea Women, assessed whether those deals were fair market value. After the 2022-23 accounts had been published, The Athletic reported how the Premier League had adjusted the value of the sales. And the latest accounts show that — in July 2024 — the league reduced the profit from the hotel sales by £6m. If the Premier League decides the sale was not fair market value, then it will be detailed in the next set of accounts, which are not due to be published until next year. There will be a note in Chelsea's accounts — as there was this year in relation to the hotel sales — detailing if an adjustment has been made to the price. But if the Premier League is satisfied with the transaction, then there is no need for that to be documented in the accounts.
