There is a growing trade in women’s sports. Slowly but surely, the gap between revenue from men’s and women’s sport is narrowing.
Deloitte financial experts indicated that the commercial value of women’s sports is growing steadily and there will be large audiences in the coming years, which will lead to revenue growth.
Where does the revenue come from?
The bulk of the sports’ revenue comes from television broadcasting rights, sponsorship contracts, and match-day sales (ticket sales and souvenir sales). Among these, the biggest source of revenue is selling TV rights. Because the value of rights depends on audience size, competitive sports run by women must attract enough bystanders in order to generate substantial revenues. Although it lags behind onlookers compared to men’s sports, the women’s sport is increasingly proving its appeal.
The opening match of the Women’s Cricket World Cup 2020 organized by the International Committee of Women’s Cricket (Australia and India) saw 3.6 million in India while 20 million watched around the world. In the UK, 2.6 million people watched the 2017 Women’s Rugby World Cup Final, of which 56 percent were male, according to Nielsen. Also in the United Kingdom, the semi-finals of the 2019 Grid World Cup were witnessed by 550,000 people.
Among women’s sports, football holds the record for the most television viewership. The FIFA Women’s World Championships 2019 in France set a record for fans, with 260 million spectators watching the final match live alone.
In recent years, it has become increasingly common for women’s sports to attract tens of thousands of visitors, which can mainly be seen in the national team tournaments, and women’s sports have proven their ability to attract the attention of the general public as well.
“The commercial value of women’s sports – although it is less than men’s sport today – is constantly increasing and we expect this trend to be observed in the future,” said Peter Baddar, president of sports consulting group Deloitte.
In the United States, for example, the US Open has had higher viewership rates than males.
As a result, there is a significant increase in interest in television rights and sponsorship opportunities.
In Hungarian women’s sport, it is worth highlighting the handball team Gyor, which won the Champions League in 2017, 2018 and 2019 as well. In addition to the main sponsor Audi, the team is supported by several major companies, such as OTP Bank or Szerencsejáték Zrt.
Even in its infancy, but on a good path with care, investments grow
in sport The global value of sponsorship contracts is estimated at $ 44.9 billion annually, a portion of which is currently associated with female athletes and sports teams. However, increased TV viewing and increased viewership are encouraging more and more sponsors to focus on women’s sports.
In 2019 and 2020, a number of important scholarships have been announced. Barclays became a multi-million pound sponsor of the Women’s Football League, the largest deal investment to date in women’s sports in the UK. In 2019, Budweiser becomes an official partner of the England women’s soccer team.
In addition to sponsorship, investments are also growing, mainly through acquisitions. In 2020, France’s Olympic Lyon group paid $ 3.15 million for its 89.5 percent stake in the NWSL team in Seattle. Real Madrid launched its women’s team in July 2019 with the acquisition of Madrid-based CD Tacon, which it bought for € 500,000.
However, it is not only through acquisitions that capital comes into women’s sports: The value of cash prizes also increases in international competitions, which increases the revenues of the national teams. The prize pool for the FIFA Women’s World Cup 2019TM reached $ 30 million, of which $ 4 million went to the winning team.
Women’s sport has enormous potential and an increasing value for sponsors, investors and supporters alike. ” László Pósfay, Director of Deloitte’s Sports Advisory Group, has been added.