WNBA Eyes Growth After Record $75 Million Raise at $1B Valuation
Emily Caron
Thu, February 3, 2022, 7:02 AM·4 min read
The WNBA has closed on $75 million in fundingthat values the league and its teams at $1 billion, according to people familiar with the raise. The league said it is the largest-ever capital raise for a women’s sports property.
“I keep using this word, but it’s another historic moment for the WNBA,” league commissioner Cathy Engelbert said in a phone interview. “Since day one, I’ve talked about the business transformation this league needed, and this capital raise is a huge step forward in that transformation.”
The $1 billion valuation is about equal to that of the Detroit Red Wings, the 10th most valuable team in the NHL. The least valuable NBA team, according to Sportico’s valuations, is the New Orleans Pelicans at $1.5 billion. Engelbert declined to comment on the valuation.
WNBA sponsorship partner Nike is making a “significant equity investment,” the league said.
The raise also includes an accomplished group of high-profile investors, including Laurene Powell Jobs, founder and president of Emerson Collective; former Secretary of State Condoleezza Rice; Columbus Crew and Cleveland Browns co-owner Dee Haslam and Whitney Haslam Johnson of the Haslam Sports Group; and Linda Henry, CEO of Boston Globe Media Partners and co-owner of the Boston Red Sox and the Liverpool FC.
NBA owners currently hold 50% of the WNBA’s equity, and the other 50% remains in the hands of the owners of the W’s 12 teams (five of whom also own NBA franchises). Both the WNBA and NBA Boards of Governors approved the transaction.
Among the investors with WNBA or NBA ties are Seattle Storm co-owner Ginny Gilder; Micky and Nick Arison (Carnival Corporation and the Miami Heat); Susan and Michael Dell (CEO of Dell Technologies and a minority investor in the NBA’s San Antonio Spurs); Mark Walter (chairman of the Los Angeles Dodgers and co-owner of the WNBA’s Sparks); Ted Leonsis (founder and CEO of Monumental Sports & Entertainment, which also counts Powell Jobs among its partners and owns both the NBA’s Washington Wizards and the WNBA’s Mystics); Herb and Steve Simon (owners of the Indiana Pacers and Fever); and Joe and Clara Tsai (owners of the New York Liberty and Brooklyn Nets).
“Susan and I are excited about the growth opportunity in women’s sports and specifically the WNBA,” Michael Dell said in a statement. “We also are proud to support a league that is committed to empowerment, and we look forward to supporting Cathy and all the accomplished and diverse women of the WNBA to make a positive impact in the world.”
Former NBA players Pau Gasol and Baron Davis and former WNBA star Swin Cash (now vice president of basketball operations for the New Orleans Pelicans) are also among the equity partners.
Engelbert said the existing equity holders’ shares will be diluted equally on a pro-rata basis to make room for the new investors. The equity stakes will be in the league itself, in a break with how some other leagues have approached raising capital in recent years.
Very powerful list of investors
