Sports have long been regarded as a powerful catalyst for personal growth, character development, and community engagement. For women, participation in sports offers more than just physical activity; it's a journey that nurtures leadership, teamwork, and resilience. Beyond these remarkable personal benefits, the economic landscape of women's sports reveals a world of untapped potential. The argument that women's sports aren't economically viable has crumbled under the weight of evidence that suggests quite the opposite. In this article, we delve into the economics of women's sports, including sponsorship, investment, and media coverage, and discuss the mutually beneficial relationship between financial success and professional development for female athletes.
Breaking Sales Records
Just this week, Nike’s replica Mary Earps England goalkeeping shirts sold out within hours of going on sale. The goalie shirts went on sale for the first time on Monday, but no notice was made, so many supporters missed out on the opportunity to purchase one. The booming sales of Earps' goalkeeper shirt send a clear message – there is a substantial market for women's sports merchandise. Nike's decision to initially withhold the shirt was met with strong criticism, and their misjudgment illustrates the untapped demand for women's sports products. A shirt with ‘Earps 1’ on the back retailed for £99.95, but are now selling for double the price on eBay.
Mary Earps’ goalkeeper kits finally went on sale on Nike.
They sold out within hours of launch 🤩
And there was not even an announcement they were being released 🤯
From #FootballBite, thanks to @HungryJacksAU 📺 https://t.co/sgcmw8Jjzi#OptusSport pic.twitter.com/Pnna8wXSg9— Optus Sport (@OptusSport) October 12, 2023
Collegiate Sports
In the collegiate sports landscape, women athletes are emerging as economic powerhouses, as the post NIL (name, image, and likeness) era takes hold. Male athletics have historically dominated in the NCAA. The NCAA's 2022 "The State of Women in College Sports" report shows that Division I athletic departments spend roughly twice as much on their men's teams as on their women's teams, with comparable but less pronounced differences shown in Division II and III. Football has routinely dominated all other collegiate sports in terms of net revenue every year.
According to Opendorse's industry insights metrics, football makes up nearly half of the overall NIL compensation with men’s basketball in second at just over 21%. Remove football and female athlete compensation surges from less than 25% to over 42%. An average football deal comes out to nearly $3,400 on two platforms. Opendorse stated that although softball and women's basketball typically placed in the top five overall, women's sports receive greater sponsorships than men's sports when football is taken out of the equation. Despite the big gap between NIL compensation for football players and all other athletes, Opendorse’s data shows potential for greater gains within women’s sports. Since the NIL era of endorsement deals for NCAA and other amateur athletes began in July 2021, women’s college basketball has ranked the third-highest among name, image, and likeness (NIL) compensated sports. In contrast to men, who receive over 30% of their income from donors and the more than 250 collectives that have emerged nationwide, women receive nearly 90% of their income from brand partnerships. Opendorse Co-Founder and President Adi Kunalic said about the study,
“Through the first year and a half of the NIL era, women’s sports hold six of the top 10 highest-earning sports by NIL compensation. There are no signs of slowing down.”
The success that female athletes are experiencing in the market for endorsement deals could make a significant impact on how women's collegiate sports are funded in the future, from corporate partnership agreements to media rights and university budgets. This year’s women’s college basketball national championship between LSU and Iowa averaged nearly 10 million viewers on ABC and ESPN2, becoming the most-watched title game in tournament history. Additionally, the world record for attendance at a women's sporting event was broken this year in Nebraska at a NCAA volleyball match, where over 92,000 fans watched the Nebraska volleyball team beat Omaha 3-0.
Earlier this month, LSU athletes @Reese10Angel and @livvydunne were featured on the cover of @SInow's Money Issue. The women are two of the biggest earners in the NIL era of collegiate athletics.@DMGrubb was able to talk one-on-one with @stephapstein, who wrote the cover story;… pic.twitter.com/wL5pNvXwUB
— HITP Sports Media (@HITP_Sports) September 22, 2023
The Economics of Women's Soccer
The success of the 2023 FIFA Women's World Cup exemplifies the economic potential of women's sports. The World Cup generated $570 million (approximately $900 million AUD) in revenue making it the second-highest income for global sporting events behind the 2022 World Cup. The 35 matches held in Australia drew a cumulative attendance of 1,269,531 spectators, and New Zealand recorded 708,743 attendees across 29 matches, including a record-breaking attendance of 43,217. The groundbreaking revenue and attendance generated by the 2023 Women's World Cup further intensifies the calls for equal recognition and compensation.
Furthermore, the the U.S. Women's National Soccer Team games consistently outperform men's competitions in television ratings, even surpassing the NBA Finals and Stanley Cup. When women's sports are invested in, they prove to be profitable, often outstripping the revenue generated by their male counterparts. The USWNT's event revenue speaks volumes about the tremendous financial opportunities within women's sports when given the support they deserve.
The Gender Pay Gap
The heart of the gender pay gap within sports lies in funding, marketing, and media coverage. In a landscape where women's sports often receive limited financial backing, they are at a clear disadvantage. This financial disparity further accentuates the gender pay gap, as female athletes face hurdles in negotiating for higher salaries, securing substantial prize purses, and landing endorsement deals comparable to their male counterparts. Even when female teams outperform male counterparts in revenue generation, female athletes still earn significantly less. Irish professional footballer Diane Caldwell commented,
"Football's gender pay gap is worse than in any other profession. The bottom line is that there must be decent and secure jobs for women as professional footballers.”
Worldwide, the most prominent gender pay gap exists in football. The average yearly salary of a male footballer who plays for a top-league club in the UK is GBP2,800,000, whereas the equivalent for a female footballer playing in the Women’s’ Super League is GBP30,000. The U.S. women's soccer team, after winning the 2015 World Cup, generated more revenue than the men's team over the following three years, yet the female players' earnings didn't reflect this success. This pay disparity sparked a landmark lawsuit addressing the gender pay gap in sports, resulting in a settlement that included a multimillion-dollar payment to the players and a promise by their federation to equalize pay between the men’s and women’s U.S. national teams.
In most sport disciplines, women earn significantly less than their male counterparts.
What should be done about this gender pay gap in sports?#NBSBeatsNBalls
Image: Courtesy pic.twitter.com/4ockJWMTmZ— NBS Sport (@NBSportUg) August 2, 2022
When it comes to sports as a business enterprise, if you don’t put in enough funding, don’t invest in marketing, and you aren’t getting quality broadcast minutes and media coverage, your business is going to fail. Broadcasters and pundits play a vital role in boosting the exposure of female athletes; we cannot expect sportswomen to achieve the same stardom as men if we never hear about their successes.
Increased live TV coverage can enhance interest and create more awareness of women's sports. In March 2020, Sky Sports launched a YouTube campaign called “Rise with Us,” featuring key women's competitions, such as the Women’s Six Nations, the Netball Superleague, WNBA, and women's major golf tournaments. A record 50 million people tuned in to watch the Euros final in 2022, and physical crowd numbers for the Women’s Six Nations in 2022 increased by a significant 62% since 2019 as a result. The rise of women's sports viewership is unmistakable, with 15.1 million people watching women's sports in the first three months of 2022. By investing in female sports teams and athletes through commercial partnerships and sponsorships, female athletes can gain wider recognition. Notable examples include an Italian luxury fashion brand signing Leah Williamson as an ambassador in 2022, and Adidas sponsoring the FIFA Women’s World Cup in 2023.
The gender pay gap is fundamentally a byproduct of unequal investments in funding, marketing, and media visibility. The data clearly shows that women's sports are successful in bringing in crowds, revenue, and endorsement deals that mirror the accomplishments of the athletes. Bottom line, investing more in the growth of the women’s sports benefits the business.
The Link Between Sports and Professional Success
Leading corporations, including Deloitte and KPMG, have recognized the invaluable connection between sports and professional success for women. A recent Deloitte insights survey highlights the profound impact of competitive sports on women's professional development. The report, titled "Impact of Sports on Women's Professional Success," reveals that women who participated in competitive sports during their youth are more likely to hold leadership or management positions. The skills acquired through sports, such as teamwork, leadership, stress management, and effective communication, have a direct impact on women's career growth.
The Deloitte study found that 85% of surveyed women who played sports say the skills they developed playing sports were important to success in their professional careers — the findings are even higher among women in leadership roles (91%) and women who make $100,000 or more (93%). Teamwork (69%) and leadership (41%) are the top abilities acquired from competitive sports, according to those surveyed who have participated in competitive sports.
𝟗𝟏% of women in leadership roles, who played sport, say the skills they developed playing sports were important to success in their professional careers.
This according to @Deloitte new report titled “Impact of Sports on Women’s Professional Success.”
Some other stats? 🧵👇🏽 pic.twitter.com/8PlrRyyjXw— Her Sport (@HerSportDotIE) October 9, 2023
Irish businesswomen place a great deal of importance on sport in their daily lives; according to a study done by iReach and commissioned by KPMG, 88% of the participants think that the skills they have developed in sports can be applied in the workplace. The research was conducted entirely with key female decision makers in businesses nationwide, with 75% of respondents reporting that they have participated in sport at some level. 94% of women in business would encourage a female relative to participate in sport, and 45% of those surveyed stated that they actually look to see if participation in sport is included on a CV when hiring a new employee.
Investing in Women: A Mutual Path to Success
Investing in women's sports not only benefits female athletes but also nurtures their professional development. It is a pathway to shattering the glass ceiling and enhancing their representation in leadership positions. At the same time, the economic benefits reaped from women's sports underscore the undeniable potential of this rapidly growing industry. As women continue to break barriers and challenge stereotypes, they open doors to a future where sports and professional development are mutually reinforcing.
Sports are undeniably a business and in the face of the evolving sports landscape, investing in women's sports is not just a smart financial decision but a powerful tool for empowerment and equality. As female athletes strive for equality in the world of sports, they are not only challenging traditional norms but also opening doors for a future where sports and professional growth go hand in hand. It's time to invest in women, support their professional development, and collectively embrace the potential for growth, equality, and success in the world of sports and beyond.
