July 3, 2024

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NWSL team valuations are accelerating significantly as a major deal in development for Angel City FC is reshaping the market. … The struggles for the esports business grow as the NBA 2K League begins a large-scale “revamping.” … The WNBA posts a landmark attendance figure for a game in Las Vegas. … Plenty of money is on the line this weekend across multiple sports. … Plus: More on the Big 3, Kansas City, USMNT coach Gregg Berhalter, and Paramount.

A note to FOS readers: We are off on Thursday and Friday for the Fourth of July holiday, but we will be back in your inboxes this weekend with a story on how sports went from a Wall Street punchline to a coveted asset class and a profile on the graphic designers who have become college sports insiders.

— Eric Fisher [[link removed]] and David Rumsey [[link removed]]

Another Milestone for NWSL: Angel City FC’s Potential $300M Valuation [[link removed]]

Gary A. Vasquez-USA TODAY Sports

The wins just seem to keep coming for the NWSL.

Now into the second half of a season that is on pace [[link removed]] to break total match attendance and viewership records, a new mark around franchise valuations appears to be on the way, too.

That’s coming by way of a potential ownership stake sale in Angel City FC. The Los Angeles-based club is said to be valued [[link removed]] at a league-high $250 million as Disney CEO Bob Iger and his wife Willow Bay close in on the purchase of a controlling share, according to multiple reports. One report, from Semafor [[link removed]], put the new number even higher, saying Angel City will now be valued at more than $300 million with the new investment.

Iger and Bay would be taking over Angel City’s largest ownership stake from Reddit co-founder Alexis Ohanian, who declined to comment about it when asked by Front Office Sports on Wednesday.

Whatever the final valuation for Angel City ends up being, should the deal be completed, it represents the richest women’s sports team in the world, and is likely to come in at more than double the most recent NWSL franchise sale. In March, the San Diego Wave were sold [[link removed]] for a then-league record $113 million.

The NWSL Rocket Ship

While markets certainly play a factor is a specific club’s value, a clear upward trend can be seen in the NWSL over the last year:

Portland Thorns: Sold [[link removed]] for $63 million in January Bay FC: Launched this year, and a forthcoming Boston club, paid [[link removed]] $53 million expansion fees Chicago Red Stars: Sold [[link removed]] for $35.5 million in 2023

The growth just from the Portland sale to San Diego to now Angel City—roughly doubling each time—is on par with, or even better in some cases, than trends in top men’s leagues. The most recent NFL sales include the Commanders ($6.05 billion), Broncos ($4.65 billion), and Panthers ($2.275 billion). In the NBA, the Hornets sold for $3 billion last summer shortly after the Suns sold for $4 billion.

Big Move for Iger

While the 73-year-old Iger has long been a force within sports media, this would represent his first personal investment in a professional franchise. “We have been waiting for the right opportunity,” Iger and Bay said in a pitch deck obtained by Semafor.

Iger is currently under contract with Disney—which holds NWSL media rights—through 2026, setting up a unique scenario where a club investor would also be the top executive of a league broadcast partner. His term is set to end one year before the NWSL’s $240 million media rights deals with ESPN, CBS, Amazon, and Scripps Sports expire after the ’27 season. For now, it’s unclear how his involvement with Angel City could impact the Disney-NWSL relationship.

Esports Winter: NBA 2K League Hits Pause Button Amid Industry Decline [[link removed]]

NBA 2K League

Five years ago, Monumental Sports & Entertainment chairman Ted Leonsis notably said that, “I believe that in 10 years, an NBA 2K player will be more well known, popular, and better compensated than LeBron James. It’s just math.”

Not only is that prediction becoming more elusive with James’s new $104 million contract extension [[link removed]] with the Lakers, but the league Leonsis was lauding then is now fundamentally retrenching amid a broader sluggishness across esports.

The NBA-backed NBA 2K League—which debuted in 2018 and marked the first major U.S. sports league to form its own esports property—on Tuesday said it is “revamping” its operations to focus on influencer-based content, driven in part by NBA and WNBA players and other celebrities, instead of continuing as a more traditional esports property.

Additionally, gaming and entertainment news website Dexerto reported [[link removed]] that most of the current NBA 2K league staff has been laid off. With those moves, the league is now effectively on hiatus until next year.

“The future business will combine NBA and Take-Two brand assets, and seek to engage consumers who live and play where pop culture, gaming, and basketball collide,” the league said [[link removed]] in a statement, which also promised “more details on our 2025 competitive season in the coming months.”

Bigger Issues

The NBA 2K League’s woes are far from isolated. Despite previously heady predictions, far beyond those of just Leonsis, for the growth of esports, the overall market has been declining [[link removed]] for more than a year. That retreat, branded within the industry as a so-called “ esports winter [[link removed]],” has been marked by a series of layoffs, team closures, falling valuations, financial losses, and missed expectations in terms of viewership.

In addition to those larger challenges, sports as a content genre has struggled within esports, with many fans and competitors preferring other types of games such as first-person shooters.

FRONT OFFICE SPORTS EVENTS

From Fireside to Courtside

Summer is officially in full swing and Front Office Sports is headed to the Hamptons. On Aug. 2, Huddle in the Hamptons [[link removed]] will bring together business leaders in sports, entertainment, technology, and media for an afternoon of panels, networking, and racket sports.

The perfect way to spend a summer Friday, this invite-only event will begin with a series of fireside chats and conclude with a pickleball tournament.

To become a partner or learn more about the event, visit our website [[link removed]].

ONE BIG FIG Vegas Headliner

Mark J. Rebilas-USA TODAY Sports

20,366

Attendance for the Las Vegas Aces-Indiana Fever game Tuesday night, representing the largest crowd at a WNBA game since 1999, and the fifth-biggest in league history. As many teams have done when Caitlin Clark (above) has come to town, Las Vegas moved the matchup out of its primary venue (the 12,000-seat Michelob Ultra Arena) and into a larger one (T-Mobile Arena).

This is just the latest WNBA record broken during a game involving Clark. Last month’s Fever-Chicago Sky matchup was the most expensive ever [[link removed]] on secondary markets. And every WNBA broadcast partner has set viewership records [[link removed]] during various Indiana games.

STATUS REPORT Two Up, One Down, One Push

Bob DeChiara-USA TODAY Sports

Big 3 ⬆ The 3-on-3 basketball league founded by Ice Cube (above, right) has sold [[link removed]] a third franchise to a Houston ownership group for $10 million.

Kansas City ⬆ The NWSL announced that the Current’s CPKC Stadium, the first venue [[link removed]] purpose-built for a pro women’s franchise, will host the league’s 2024 championship game in November.

Gregg Berhlater ⬇ Several U.S. Soccer supporter groups, including the American Outlaws with more than 30,000 members, have released [[link removed]] statements calling for the coach to be fired after the USMNT’s unexpected exit [[link removed]] from Copa América.

Paramount ⬆⬇ The long and winding sale process for National Amusements—the Shari Redstone company that controls the CBS Sports corporate parent—is continuing as talks about a merger with Skydance Media are reportedly back on [[link removed]], just three weeks after calling off [[link removed]] a potential union. This still might not be the end, though, as the latest negotiations reportedly include a 45-day “go-shop” period in which other Paramount suitors can still make bids and the company can pursue a better offer.

WEEKEND PRIZE POOL A Fourth of July Tradition

Lansing State Journal

Front Office Sports tees up every weekend sporting slate with a ledger of the purses and prize pools at stake. Here’s what’s up for grabs during this extended holiday weekend:

Nathan’s Hot Dog Eating Contest, Coney Island, NY

When: Thursday Purse: $40,000 First place (men and women individual): $10,000

PGA Tour, John Deere Classic, Illinois

When: Thursday to Sunday Purse: $8 million First place: $1.44 million

NASCAR Cup Series, Grant Park 165, Chicago

When: Sunday Purse: $7.6 million First place: Individual payouts are no longer disclosed

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Conversation Starters What a difference: The top WNBA All-Star fan votes saw a massive surge [[link removed]]in 2024, with Caitlin Clark leading at 700,735 votes, compared to 2023’s top vote-getter A’ja Wilson with 95,860. Quite a rise: Kenny Trevino, who started with the San Antonio Spurs as an equipment manager in 2012 and is now the head video coordinator, will serve [[link removed]] as the Spurs Summer League head coach next week at 31 years old. The name, image, and likeness industry is projected to reach $1.7 billion in the upcoming academic year, according [[link removed]] to an Opendorse report. Editors’ Picks LeBron James Re-Signs With Lakers, Will Officially Play With Son [[link removed]]by Alex Schiffer [[link removed]]The Lakers return LeBron James on a two-year deal. TNT Sports Locks in New Media-Rights Deals As NBA Decision Looms [[link removed]]by David Rumsey [[link removed]]College sports, tennis, and racing will be featured prominently moving forward. Celtics’ Sale Listing Sparks Transition Questions: Here’s What We Know [[link removed]]by Eric Fisher [[link removed]] The forthcoming NBA team sale is expected to set a league record, while presenting new questions. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by David Rumsey [[link removed]], Eric Fisher [[link removed]] Edited by Matthew Tabeek [[link removed]]

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