Basketball|W.N.B.A. Raises $75 Million With Hopes of Business Model Revamp
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Cathy Engelbert, the league’s commissioner, said the investment could help fund marketing, improve digital products and fan outreach to increase revenue.
By Lauren Hirsch and Shauntel Lowe
The W.N.B.A. has raised $75 million from more than two dozen investors in a bid to revamp its business model as players call for expansion, higher salaries and better benefits.
The funding includes investments from Nike, Condoleezza Rice, Laurene Powell Jobs, Pau Gasol, N.B.A. and W.N.B.A. team owners, and other sports and business figures.
“We’re going to take a huge step forward in transforming the league and getting us an economic model that is worthy of players on the court,” W.N.B.A. Commissioner Cathy Engelbert said in an interview.
This was the first time that the W.N.B.A. raised money from investors. The league, which was founded by the N.B.A. in 1996, held its first season in 1997. Financial struggles have been a constant, and stark disparities in revenue, media attention and player pay distinguish the women’s league from the N.B.A. The W.N.B.A. is betting that with the right investments it can generate enough interest in its players to create a sustainable business model.
“Part of it is exposure,” Engelbert said. “It’s like pushing a boulder up a hill.”
The W.N.B.A. is currently owned half by the 30 N.B.A. teams, and half by the 12 W.N.B.A. teams. Ownership on both sides will be diluted as part of the deal. Engelbert declined to disclose the size of the stake the new investors are taking in the company, the valuation of the deal or the league’s annual revenue.
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