The risk and reward for NASCAR and women’s sports

Three items from the notebook that shouldn’t be overlooked.

There’s a constant call for sports to test and innovate, so when they successfully do so, it should be recognized. A hat tip to NASCAR and its executive team — Steve Phelps, Steve O’Donnell, Ben Kennedy and others — for being creative, thinking differently and successfully executing the Busch Light Clash at the Coliseum. The idea, credited to the 30-year-old Kennedy, was praised by even the most hardened NASCAR veterans because it did everything they talked about doing for years: Go to a new market (this one with entertainment and celebrity horsepower); expose live racing to new fans (NASCAR estimated 70% of ticket buyers had never seen a NASCAR race before, so they captured a whole new audience, while sources said they’ve never seen such lines for fans buying merchandise); get their teams excited (team and series staffers raved about starting the season in Los Angeles and avoiding Daytona and the traditional rain and weather unpredictability); and show some swagger (NASCAR’s stakeholders and partners loved being in the entertainment capital, showing the sport has momentum and it matters). As one insider told me, “I just loved the risk-taking by doing something new.” NASCAR will see if this event penciled out financially and decide if they return to the Coliseum or another historic venue, but considering the media and promotional value and the boost to stakeholder morale and excitement, it’s hard to think of a more successful way for the series to start its season.

If you’re scoring at home, since the start of the year, $200 million has been committed to three women’s sports leagues over the next five years. Owners of the National Women’s Soccer League committed $100 million to growing the league through 2026, owners of the Premier Hockey Federation have committed $25 million to fuel the league over the next three years and the WNBA has secured $75 million in funding from various investors to drive the growth of that business, and the resulting valuation of the WNBA and its teams was pegged at an astonishing $1 billion. We’ve said time and again that investors needed to step up to support women’s sports and that’s what they have done — so it’s welcome news. I also can’t stress enough how much of a change agent Commissioner Cathy Engelbert has been for the WNBA since she joined the league in 2019, and now, with an eight-year CBA signed in 2020, the league has labor stability and can work with its players to deploy the funds and grow the sport before the next media deal and CBA. Many were surprised by the news of the $75 million raise by the WNBA, but it matches what I’m continually hearing at the highest levels of sports — the investor community is bullish on growth. The WNBA kept the raise confidential and reached out to strategic investors with a shared mission to grow the league, and while I was a bit surprised they didn’t have institutional investors as part of this round, the WNBA obviously felt secure and confident with this initial, diverse group.

Also of note: Michelle Kang buying the Washington Spirit for $35 million, a record price for an NWSL franchise, and a reported $10 million more than a group led by investor Todd Boehly. Look to see if this deal establishes a benchmark for NWSL teams and is a precursor to higher valuations. There’s a lot to digest and watch in the future, but the first months of 2022 could be remembered as the tipping point for investments in — and growth of — women’s sports.

Finally, many of you love to discuss and debate the sports business, and I can think of no better opportunity and avenue for that than to be a judge for our Sports Business Awards. Now, before you jump at this chance — here’s a caveat. This isn’t a casual or carefree assignment, as it takes significant time, energy and thought in studying, reviewing and doing the work to be fully versed in the accomplishments of each of the nominees across a few of the categories. Previous judges have all found it a valuable, worthwhile and a fun experience — but also time consuming, challenging and, during the deliberation process, quite rigorous. So, this is my annual request for those willing to learn more or take on more work! Judges will be assigned in mid-April and will be asked to complete their review by the time discussions take place — either virtually or in person in New York.

Abraham Madkour can be reached at amadkour@sportsbusinessjournal.com.