Four seasons after the WNBA scrambled to play a season in a bubble amid the COVID-19 pandemic, the league is enjoying its best year to date. Both television ratings and attendance are up, as is its standing in the culture.
“I don’t know if we would have made it, but I do know we wouldn’t be where we are today without having had that highly competitive 22-game season in the bubble,” WNBA commissioner Cathy Engelbert said.
Before Engelbert took over as the WNBA’s first official commissioner in 2019, she was told by the league’s owners that more capital was needed.
In early 2021, the WNBA put out a pitch deck to investors. A year later, they closed a $75 million capital raise that came with a $475 million post-money valuation for the WNBA. Michael Dell and Nike were the largest investors, according to a source. Nike invested $25 million in the league.
“Nike called and wanted to make a substantial investment because part of their strategy was to double down on women’s sports,” she said.
Investors in the capital raise took a roughly 16 percent stake in the league, with WNBA owners and NBA owners each splitting the rest in half, and took preferred equity.
The WNBA invested that money into marketing efforts and human capital. The WNBA has gone from roughly 12 employees to more than 60 now.
Franchise valuations have also increased dramatically. Mark Davis bought the Las Vegas Aces for a little more than $2 million, while this year Portland’s all-in expansion fee hit $125 million.
