Women's Soccer Is Getting a Big Upgrade

Kate Leinbaugh: I have the great honor of officially granting the 16th NWSL team to the city of Denver. [Pause] Kate Leinbaugh: Last month, a group from Denver won a competitive race to get a new team for the National Women's soccer league. [Pause] Kate Leinbaugh: It paid $110 million to start a new team, a record amount for women's soccer and for all of women's sports. [Pause] Kate Leinbaugh: But something else about Denver's bid stood out to our sports reporter, Rachel Bachman. [Pause] Kate Leinbaugh: Perhaps most important, they pledged to build a practice facility and a stadium solely for this team. [Pause] Kate Leinbaugh: What's notable about that? [Pause] Kate Leinbaugh: About a year ago, women's professional stadiums essentially didn't exist really in the world. [Pause] Kate Leinbaugh: In the world? [Pause] Kate Leinbaugh: In the world. [Pause] Kate Leinbaugh: There might have been a playing field somewhere, but there was not a stadium for women really anywhere professionally. [Pause] Rachel Bachman: Building a stadium signals a new level of investment coming for women's sports. [Pause] Rachel Bachman: Owners are willing to spend sums of money in ways that they had never been willing before. [Pause] Rachel Bachman: That's a huge change. [Pause] Rachel Bachman: It's hard to overstate what a big change that is. [Pause] Rachel Bachman: In the past, when people invested in professional women's sports, it was typically very short-term. [Pause] Rachel Bachman: So the fact that owners are now saying, we think these leagues are going to grow to the point that even though we're investing hundreds of millions of dollars, we are going to get our money back. [Pause] Rachel Bachman: A new era. [Pause] Rachel Bachman: It is a new era. [Pause] Rachel Bachman: I would say it is an unprecedented era of investor confidence in women's professional team sports. [Pause] Kate Leinbaugh: Welcome to The Journal, our show about money, business, and power. [Pause] Kate Leinbaugh: I'm Kate Leinbaugh. [Pause] Kate Leinbaugh: It's Monday, February 10th. [Pause] Kate Leinbaugh: Coming up on the show, how big money is making its way into women's soccer. [Pause] Kate Leinbaugh: Why shop at Burlington? [Pause] Kate Leinbaugh: Maybe it's the deals that are new each time you drop by. [Pause] Kate Leinbaugh: Maybe it's the brand names you'll be shocked to see in store. [Pause] Kate Leinbaugh: Maybe it's the quality of the items, the amazing selection, and the newest trends. [Pause] Kate Leinbaugh: If you like to save but also like to stay in style, Burlington is your answer. [Pause] Kate Leinbaugh: And the question you'll be asking yourself is, why go anywhere else? [Pause] Kate Leinbaugh: Burlington. [Pause] Kate Leinbaugh: Deals. [Pause] Kate Leinbaugh: Brands. [Pause] Kate Leinbaugh: Wow. [Pause] Kate Leinbaugh: Tuesday on NBC, Jimmy Fallon and Bozema St. John host the highly anticipated new competition show. [Pause] Kate Leinbaugh: I hired 10 creatives from all walks of life. [Pause] Kate Leinbaugh: They will be battling it out to see who can impress the world's biggest brands. [Pause] Kate Leinbaugh: This is a huge opportunity. [Pause] Kate Leinbaugh: This is the battle for the next big idea. [Pause] Kate Leinbaugh: This is not play-play. [Pause] Kate Leinbaugh: We're spending millions of dollars. [Pause] Kate Leinbaugh: I'm so excited to embark on this adventure with all of you. [Pause] Kate Leinbaugh: Make the best idea win! [Pause] Kate Leinbaugh: On brand with Jimmy Fallon. [Pause] Kate Leinbaugh: Series premiere Tuesday on NBC. [Pause] Kate Leinbaugh: When the National Women's Soccer League launched in 2013, its success was uncertain. [Pause] Kate Leinbaugh: Two previous attempts to start women's soccer leagues had failed. [Pause] Kate Leinbaugh: This time, the NWSL was starting with eight teams and not a lot of money. [Pause] Kate Leinbaugh: What was the business model? [Pause] Kate Leinbaugh: The business model was a shoestring. [Pause] Kate Leinbaugh: It was, let's invest enough to keep this team going till the next year, and then see if we can keep doing it again the following year. [Pause] Kate Leinbaugh: The wages, aside from maybe a couple of stars, were very low. [Pause] Kate Leinbaugh: And oftentimes players dressed in, you know, borrowed locker rooms or even porta-potties or trailers next to the field because the entire setup was just simply not for them. [Pause] Kate Leinbaugh: They were add to men stadiums or college stadiums whatever stadium they could find. [Pause] Kate Leinbaugh: They were renters. [Pause] Kate Leinbaugh: Why couldn't they have their own? [Pause] Kate Leinbaugh: They didn't have the money. [Pause] Kate Leinbaugh: Not anywhere near enough money. [Pause] Kate Leinbaugh: And they didn't have owners who were willing to invest because, remember, these two previous leagues had each folded. [Pause] Kate Leinbaugh: So who in their right mind would build a stadium for a team that might be gone in three years? [Pause] Rachel Bachman: What is the downside of being a renter, of playing at other people's stadiums? [Pause] Rachel Bachman: Oh, there's so many. [Pause] Rachel Bachman: You don't get to sell sponsorships, which is usually a very big chunk of the money you make. [Pause] Rachel Bachman: A lot of stadiums sell their naming rights. [Pause] Rachel Bachman: Those are very lucrative. [Pause] Rachel Bachman: Selling advertising rights all around the stadium. [Pause] Rachel Bachman: Picking the vendors you want. [Pause] Rachel Bachman: Stadiums want to pick foods and drinks and experiences and surroundings that they think will make their fans more likely to come and spend money and stay and want to re-up their season tickets. [Pause] Rachel Bachman: All of that has been off the table for women's pro team sports. [Pause] Kate Leinbaugh: Things began to change for women's soccer in 2019, after the U.S. won the Women's World Cup. [Pause] Kate Leinbaugh: And they are the Golden Girls, the champions of the world, the United States. [Pause] Kate Leinbaugh: Nobody. [Pause] Kate Leinbaugh: The tournament was huge, and the win cemented the U.S. team as a powerhouse of global women's soccer. [Pause] Kate Leinbaugh: Millions watched the final on TV. [Pause] Kate Leinbaugh: And in the stands, soaking up the excitement, was a couple from Kansas City, Missouri. [Pause] Kate Leinbaugh: So Chris and Angie Long are a married couple who work in investment. [Pause] Kate Leinbaugh: And they were blown away at the fervor for that event, at the fandom of the U.S. women's soccer team. [Pause] Kate Leinbaugh: And they just saw limitless potential in this league, the National Women's Soccer League, that was quite young at the time, in fact, that many people had never even heard of. [Pause] Kate Leinbaugh: And they said, this is a business opportunity. [Pause] Kate Leinbaugh: In 2020, the Longs bought an NWSL team in Utah and relocated it to Kansas City. [Pause] Kate Leinbaugh: And they wanted to go beyond that shoestring business model. [Pause] Kate Leinbaugh: They wanted to make a big investment, to do something no other women's professional sports team had done before, build their team its own stadium. [Pause] Kate Leinbaugh: But first, they needed a bank to finance it. [Pause] Kate Leinbaugh: How did that go? [Pause] Kate Leinbaugh: It was a struggle. [Pause] Kate Leinbaugh: Even though the Longs work in finance, 40 banks rejected their plan to build a women's-specific stadium. [Pause] Kate Leinbaugh: Forty? [Pause] Kate Leinbaugh: Forty banks. [Pause] Kate Leinbaugh: On what grounds? [Pause] Kate Leinbaugh: The bankers looked at their financial projections and were just very skeptical. [Pause] Kate Leinbaugh: They said, we don't think you can do this. [Pause] Kate Leinbaugh: We don't think this is going to pencil out. [Pause] Kate Leinbaugh: And we're not going to finance your stadium. [Pause] Kate Leinbaugh: The one bank that said yes was J.P. Morgan, where both of the longs had previously worked. [Pause] Kate Leinbaugh: But still, this had never happened before. [Pause] Kate Leinbaugh: No banks could look at other cities and say, well, it worked here. [Pause] Kate Leinbaugh: It worked there. [Pause] Kate Leinbaugh: So let's take a chance on this. [Pause] Kate Leinbaugh: No, there was no blueprint for this. [Pause] Kate Leinbaugh: The Longs created it. [Pause] Kate Leinbaugh: The new Kansas City Stadium opened last March. [Pause] Kate Leinbaugh: It cost $140 million and has an 11,500-seat capacity, which is about half the size of a men's soccer stadium in the U.S. [Pause] Kate Leinbaugh: So it's small. [Pause] Kate Leinbaugh: It's pretty intimate. [Pause] Kate Leinbaugh: But they knew they wanted it to be packed with fans and raucous and the place to be. [Pause] Kate Leinbaugh: And so they wanted to right-size it for this young team. [Pause] Kate Leinbaugh: And that's what they opened. [Pause] Kate Leinbaugh: History made. [Pause] Kate Leinbaugh: It's 2024, but if someone's going to do it, I'm glad it's Kansas City. [Pause] Kate Leinbaugh: Kansas City is officially home to the first stadium ever built for a women's professional team. [Pause] Kate Leinbaugh: Go KC Curry! [Pause] Kate Leinbaugh: In the first year, the stadium sold out, and there are plans to expand it. [Pause] Kate Leinbaugh: But the longs said they didn't turn a profit. [Pause] Kate Leinbaugh: Investment in the NWSL has been growing. [Pause] Kate Leinbaugh: In 2022, businesswoman Michelle Kang paid a record-breaking $35 million for the Washington Spirit. [Pause] Kate Leinbaugh: And then two years later Disney CEO Bob Iger and his wife paid $40 million for a controlling stake in L team that valued the franchise at $60 million. [Pause] Kate Leinbaugh: So we're talking about investment into these teams and a move from renter teams to owner teams. [Pause] Kate Leinbaugh: Alongside that, are we seeing greater spectator interest in women's soccer? [Pause] Kate Leinbaugh: Yes. [Pause] Kate Leinbaugh: Attendance has gone up significantly in the NWSL. [Pause] Kate Leinbaugh: Viewership is going up. [Pause] Kate Leinbaugh: And certainly people wanting to start teams of their own, that has surged, right? [Pause] Kate Leinbaugh: They can only add so many teams in a year, but there are many more cities who want teams than are getting them. [Pause] Kate Leinbaugh: So demand is outstripping supply right now. [Pause] Kate Leinbaugh: And so last year, when the NWSL opened bidding for a new team, the competition was fierce. [Pause] Kate Leinbaugh: This episode is brought to you by State Farm. [Pause] Kate Leinbaugh: Checking off the boxes on your to-do list is a great feeling. [Pause] Kate Leinbaugh: And when it comes to checking off coverage, a State Farm agent can help you choose an option that's right for you. [Pause] Kate Leinbaugh: Whether you prefer talking in person, on the phone, or using the award-winning app. [Pause] Kate Leinbaugh: It's nice knowing you have help finding coverage that best fits your needs. [Pause] Kate Leinbaugh: Like a good neighbor, State Farm is there. [Pause] Kate Leinbaugh: Hey, business owners. [Pause] Kate Leinbaugh: We know you know the importance of maximizing every dollar. [Pause] Kate Leinbaugh: With the Delta SkyMiles Reserve Business American Express card, you can make your expenses work just as hard as you. [Pause] Kate Leinbaugh: From afternoon coffee runs to stocking office supplies and even team dinners, you can earn miles on all your business expenses. [Pause] Kate Leinbaugh: Plus, you can earn 125,000 bonus miles for a limited time through October 29th. [Pause] Kate Leinbaugh: The Delta SkyMiles Reserve Business Card. [Pause] Kate Leinbaugh: If you travel, you know. [Pause] Kate Leinbaugh: Minimum spending requirements and terms apply. [Pause] Kate Leinbaugh: Offer ends October 29th, 2025. [Pause] Kate Leinbaugh: When the NWSL opened up bidding for a new team, more than a dozen cities submitted bids. [Pause] Kate Leinbaugh: Just three made it to the final round. [Pause] Kate Leinbaugh: There was Cleveland. [Pause] Kate Leinbaugh: We think we've got a really good bid, and it's baking right now, and we're very optimistic about the future. [Pause] Kate Leinbaugh: There was Cincinnati. [Pause] Kate Leinbaugh: But the excitement around this situation here in Cincinnati is palpable. [Pause] Kate Leinbaugh: And there was Denver. [Pause] Kate Leinbaugh: When it comes to footy foundation, can any other state boast the type of talent that we cultivate? [Pause] Kate Leinbaugh: Each bid offered something different. [Pause] Kate Leinbaugh: The Cincinnati group had a celebrity backer, one from a different sport. [Pause] Kate Leinbaugh: Basketball sensation Caitlin Clark had signed up to be part owner of the team. [Pause] Kate Leinbaugh: Caitlin getting involved is just, I think, another level of excitement. [Pause] Kate Leinbaugh: What she's doing to WNBA, like every game she's playing at is a sellout right now. [Pause] Kate Leinbaugh: And just to have that type of star power and excitement. [Pause] Kate Leinbaugh: What is she doing on a bid for a women's soccer team in Ohio? [Pause] Kate Leinbaugh: Great question. [Pause] Kate Leinbaugh: She played soccer very well in high school, and she also has an interest in running teams, even owning teams, when she retires from basketball. [Pause] Kate Leinbaugh: And so she told Cincinnati's owners that she wanted to be an owner because she wanted to learn the business and what it was like to own and run a team. [Pause] Kate Leinbaugh: What's in it for the NWSL to have Kaitlyn Clark be a part owner of a new team? [Pause] Kate Leinbaugh: She has a very high profile. [Pause] Kate Leinbaugh: And the fact that she wanted to spend time on the business, I think would have helped the soccer league. [Pause] Kate Leinbaugh: It would have brought more attention to the league. [Pause] Kate Leinbaugh: Denver had a different plan. [Pause] Kate Leinbaugh: Inspired by the success of Kansas City's team, Denver was promising something Cincinnati wasn't, to build a stadium. [Pause] Kate Leinbaugh: Rob Cohen is the biggest investor in Denver's bid. [Pause] Kate Leinbaugh: So spend a fair amount of time in Kansas City and see that stadium. [Pause] Kate Leinbaugh: And I think it's significant. [Pause] Kate Leinbaugh: When we saw that, we said, that's part of our vision. [Pause] Kate Leinbaugh: And, you know, it's just the nature. [Pause] Kate Leinbaugh: There are no new ideas out there in the world, but then how can you add to it and make it additive and make it better for the league. [Pause] Kate Leinbaugh: And so that's kind of what we looked at and said, you know how do we take what they do and do something that is authentic to Denver and that will help elevate the league and other teams. [Pause] Kate Leinbaugh: Rob has done a lot of thinking about sports investment. [Pause] Kate Leinbaugh: He was in an investor group bidding for the city's NFL team, and he helped put together Denver's bid to host the 2034 Winter Olympic Games. [Pause] Kate Leinbaugh: They lost to Salt Lake City. [Pause] Kate Leinbaugh: Lately, Rob's been eyeing women's sports teams. [Pause] Kate Leinbaugh: Women's sports are just as entertaining, just as competitive, have all the elements that men's sports have. [Pause] Kate Leinbaugh: They just haven't been put on the same platform and stage. [Pause] Kate Leinbaugh: And not that we're in it for the financial side of it, but if you just look at it and say the women's teams of today are valued at one-tenth of the men's team, you obviously realize there's incredible opportunity as a business person, but also to do something unique and different. [Pause] Kate Leinbaugh: When you saw that Kaitlyn Clark was affiliated with the bid from Cincinnati, were you like, oh, God, this is game over? [Pause] Kate Leinbaugh: No, not necessarily. [Pause] Kate Leinbaugh: Look, I have tremendous respect for Kaitlyn Clark and what she does for women's sports and what she's been able to accomplish in such a short period of time. [Pause] Kate Leinbaugh: But, you know, the ownership group is one element. [Pause] Kate Leinbaugh: There's a lot that goes into an expansion bid that the expansion committee is looking at before they even make a recommendation to the board of any league. [Pause] Kate Leinbaugh: And then in late January, it was announced that Denver would be the next city to have a new women's soccer team. [Pause] Kate Leinbaugh: Do you remember the moment you learned you won the bid? [Pause] Kate Leinbaugh: You know, honestly, it's like any long race that you finish. [Pause] Kate Leinbaugh: You know, you come across the finish line and you're super excited, but you're also exhausted. [Pause] Kate Leinbaugh: And I took a deep breath and inhaled, bent over and tried to catch my breath. [Pause] Kate Leinbaugh: And then I'm pretty sure I let out a little scream. [Pause] Kate Leinbaugh: You pumped your fist or something? [Pause] Kate Leinbaugh: Yep. [Pause] Kate Leinbaugh: How important do you think the stadium component was to your winning bid? [Pause] Kate Leinbaugh: I think it's significant. [Pause] Kate Leinbaugh: I think having a facility where you control your schedule, where you have sponsorship opportunities to maximize revenue, where you can control kind of what happens is important for men's sports and it's equally important for women's sports. [Pause] Kate Leinbaugh: I do think, obviously, teams can coexist in shared facilities. [Pause] Kate Leinbaugh: But, you know, we just saw an opportunity to create a different environment. [Pause] Kate Leinbaugh: Denver's new team will start playing next year. [Pause] Kate Leinbaugh: And Rachel says the NWSL is favoring stadium ownership going forward. [Pause] Kate Leinbaugh: So what the NWSL wants to move toward is their teams being the primary tenant wherever they play. [Pause] Kate Leinbaugh: That's a big change. [Pause] Kate Leinbaugh: It's a huge change. [Pause] Kate Leinbaugh: It's an absolute 180 because it basically never existed before. [Pause] Kate Leinbaugh: And is this move to start building women's-only stadiums? [Pause] Kate Leinbaugh: Or have teams that own their own stadiums, is it spreading to other women's soccer teams? [Pause] Kate Leinbaugh: So Bay FC, which is starting its second year in the National Women's Soccer League, is in the San Francisco Bay Area. [Pause] Kate Leinbaugh: Their owner has told me they are planning to build a stadium in the coming years. [Pause] Kate Leinbaugh: They're also building a practice facility, which will probably come first. [Pause] Kate Leinbaugh: And actually, the Bay FC owner told me He thinks that within a decade, 60 to 70 percent of the teams in this league will own their own stadiums. [Pause] Kate Leinbaugh: Wow. [Pause] Kate Leinbaugh: From the failed leagues of the past to now a future of massive investment. [Pause] Kate Leinbaugh: Yes, we've gone from no stadiums and owners who weren't entirely sure that the league would even survive to owners who are now making decades-long investments in their teams. [Pause] Kate Leinbaugh: That's all for today. [Pause] Kate Leinbaugh: Monday, February 10th. [Pause] Kate Leinbaugh: The Journal is a co-production of Spotify and The Wall Street Journal. [Pause] Kate Leinbaugh: If you like our show, follow us on Spotify or wherever you get your podcasts. [Pause] Kate Leinbaugh: We're out every weekday afternoon. [Pause] Kate Leinbaugh: Thanks for listening. [Pause] Kate Leinbaugh: See you tomorrow.