A conversation with NWSL commissioner Jessica Berman
The IX: Soccer Monday with Annie Peterson, Aug. 19, 2024
Something a bit different for this week’s Soccer Monday: I spoke with NWSL commissioner Jessica Berman on my last day in Paris. It was a wide-ranging conversation, so this is just an excerpt, edited for brevity. This conversation came before the San Diego Wave hired Landon Donovan so I wasn’t able to ask Berman her thoughts about that. She also reserved comment on reports of a new collective bargaining agreement with the NWSLPA.
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Annie: The NWSL had 56 players, more than any other league playing in France. In your opinion, what does that say about the league?
Berman: I’m sure you’ve heard me talk about this before. It’s our vision to be the best league in the world and in order to be the best league, we have to be able to attract, recruit and retain top talent. These international tournaments give us an opportunity to measure our league on a world stage and and see how our players are performing. And we couldn’t have been prouder of the NWSL representation at the Olympics. We had representation on 11 of 12 teams. So the number that you mentioned is important, but also just being able to have representation across the world really affirms for us that our strategy about how we’re going to attract more international talent is working.
Annie: How does the NWSL capitalize on this moment?
Berman: You know, for the first time, we have an infrastructure in the league that is prepared to launch a strategy that is coming out of the Olympics. So at the league level, we are coordinating across all of our clubs for back-to-market dates and making sure that the fans have an opportunity to celebrate the players who are returning back to the NWSL from the Olympics. That will include not just the U.S. players, but also the international players, that play for other countries. We are launching a marketing campaign coming out of this weekend that hopefully will tell the world that we are here, and if you liked what you saw on the international stage in the Olympics, you can watch those players play week in, week out in 14 cities across the U.S. And also other mechanisms to put us in spaces where the average American consumes content. So we’re thinking about it not only from the perspective of a professional sports fan, but really trying to capture the cultural relevance of the Olympics, knowing that millions and millions of people were paying attention for the last three weeks, and that our players and in particular, the U.S. women’s national team, performed so well that we believe that there’s an opportunity to bring those people into our funnel of fans.
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Annie: Traditionally, after World Cups and after Olympics, the the league has experienced a bump. Do you anticipate that this time?
Berman: Yes. Particularly because in those situations, it was before we had the infrastructure and investment that we have today. So it would be my expectation that we will receive a bump coming out of the Olympics.
Annie: Moving on to some of the financials. While I was already over here in Europe, Willow Bay and Bob Iger bought Angel City for just an astounding amount of money. It’s been two years since you took over the league, right? And now we’re seeing valuations like this, does that that surprise you?
Berman: It doesn’t — because of a couple of reasons. Number one, the values have been rising over the last two years. The first reset, candidly, happened before I joined, when Michelle Kang decided to pay $35 million for Washington. We then sold the expansion team for $63 million. And thereafter we had Portland trade for $65 million. We had San Diego trade for what I believe was $120 million and now Angel City. The basis on which that valuation is determined is not all that different from how other men’s leagues — or other leagues that are played by male athletes — determine their value, which is using the foundation of a revenue multiple combined with the prospects of what upside exists in the short, medium and long term. When you look at where we are in our growth trajectory, we’ve obviously just entered, really, what is the first real media deal that allows for us to build exposure and increase discoverability of our games. Knowing that we’re going to be in the market in a few years, with this deal being a short deal, I think there is a strong desire to invest now, knowing that [media exposure] tends to be the biggest growth lever and largest source of revenue for most professional sports leagues.
I also think someone like Willow Bay and Bob Iger, they are the kind of investors that, candidly, we hope to attract. They viewed this as an investment that they absolutely intend to monetize and treat as a business and also see it as a very long term investment. And when you put those things together you really do have a recipe for success. And we’re just so excited to welcome them into the league and we think it’s going to have a tremendous impact on our expansion process which is currently underway.
Annie: Do those do those two things kind of go hand in hand? Does the media deal allow teams to increase the value as teams, while the increased value of teams help you in terms of negotiating a new media deal?
Berman: Definitely the former is true. Because it’s part of the overall pro forma [profit and loss] of the league. And to the other point, I think it definitely creates a halo effect over the league that creates a ton of positive momentum. And I think, on the margins, it helps with building confidence in this league when CBS, ESPN, Amazon and Scripps see that Bob Iger and Willow Bay want to invest in Angel City and are paying $250 valuation. I think that makes them feel good about having made their own business decisions as it relates to the league. But I would say it’s more indirect than direct, if that makes sense.
Annie: We’re also seeing a boost in the WNBA from the Olympics and Caitlin Clark’s arrival has been driving ratings and all kinds of things. I’m wondering your thoughts on the overall interest in women’s sports.
Berman: It’s definitely a rising tide that lifts all boats, particularly I think on the brand side where just a few years ago, it was definitely a new investment thesis to put advertising dollars against women’s sports. And now that is definitely becoming not just the norm, but something that brands are seeking out because they’re seeing the return on investment. They’re learning more about the women’s sports fan, they’re learning that fans of women’s sports actually disproportionately reward consumers with loyalty when they see them showing up and investing in women’s sports. I think it also helps to normalize the idea that women’s sports are now on in sports bars. We love the women’s sports bars like the Sports Bra, Rough & Tumble. It’s great to have those spaces that are dedicated. And it’s also important that I’m now seeing more often situations where I walk into a hotel lobby and I see an NWSL game on in the bar, in the restaurant. And that was definitely not the case just a few years ago. And so it’s a flywheel effect that allows for us to really capitalize on the growth of the business in a way that I think is going to have a catalytic impact on the NWSL.
Annie: Are you already working on the next media rights deal?
Berman: Unequivocally, yes. That’s [an] easy one. We candidly started thinking about our next media rights deal in the context of negotiating this media rights deal. That longer term work plan began actually in 2023. It really has been this shift in how we think about this business — to not only strategize about the things that are directly in front of us, but what do we do with that? One of my things that I always say to our staff is: Let’s determine what needs to be true for x to occur. And then let’s get there. … So thinking about the next media rights cycle, if you want to be intentional about maximizing that next deal, you have to really contemplate that in the context of this deal, particularly since we made a wholesale change in our strategy in terms of discoverability.
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Links
Nice feature on Esme Morgan’s move to the NWSL, from The Athletic
ESPN’s story on Landon Donovan taking over the Wave as interim coach
Minnesota Aurora pull out of the running (for now) for an NWSL franchise
Cloe Lacasse is headed to the Utah Royals
The Chicago Red Stars aren’t getting bumped for a concert after all
USWNT returns to No. 1 in FIFA rankings
The New York Post with a feature on Tierna Davidson
Pro Soccer Wire looks at who’s next for the USWNT
Goal.com with a story on how Naomi Girma caught the world’s attention at the Olympics
NBC ratings boosted by USWNT, USA Basketball at the Olympics
Change at the top of women’s professional football in England
Interesting story from the BBC on the North Korea women’s national team
Here’s what you need to know about watching the USL Super League
Sports Business Journal on the first weekend of the new league
Forbes with an overview of the USL Super League
The Guardian with a column on why women’s football at the Olympics doesn’t work
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