Top executives discuss parity, media coverage, and NIL regulations in women's sports.

• In 2023, women's sports experienced a turning point due to significant new broadcast agreements, exceptional athletes, and unprecedented viewership, transforming the sports industry.
• According to Deloitte's estimates, revenue generated by women's elite sports could reach $1 billion this year, representing a 300% increase from 2021.

In 2023, women's sports experienced a turning point due to significant new broadcast agreements, exceptional athletes, and unprecedented viewership, transforming the sports industry.

Women's sports are currently receiving more attention than ever before, with Caitlin Clark's fever in Iowa and a packed house of 92,000 fans for women's volleyball in Nebraska.

And it's not slowing down.

According to Deloitte's estimates, revenue generated by women's elite sports could reach $1 billion this year, representing a 300% increase from 2021.

According to Deloitte, the increasing number of big media deals and commercial sponsors are contributing to the record-breaking valuations of women's sports, with several teams expected to surpass $100 million in value by 2024.

The NCAA and NWSL signed groundbreaking media deals last year, and private equity and celebrity investors are now showing interest in women's sports.

Despite progress, there is still much work to be done, particularly in the areas of equal pay, prime-time access, and the need for more historical data.

CNBC interviewed prominent women executives in sports, including league commissioners, team owners, and CEOs, to gather their opinions on the current status of women in sports. Some of their responses have been revised for readability and brevity.

What do you consider the main hindrance to the expansion of women's sports?

Renie Anderson, NFL executive vice president and chief revenue officer, emphasizes the need to highlight the greatness of women in sports, rather than being surprised by their athleticism. The message of greatness should be woven into the coverage of men's sports, as it is already there but often overlooked.

The commissioner of the National Women's Soccer League, Jessica Berman, acknowledges the high expectations on the league's growth due to the increased attention on women's sports. However, she emphasizes that it is challenging to meet these expectations, as the league is 100 years behind men's sports. As a result, it is difficult to build the league as quickly as expected while maintaining sustainability and commercial viability.

Cathy Engelbert, commissioner of the Women's National Basketball Association, highlights one of the challenges: the undervaluation of our assets. To address this issue, she suggests changing the model. The current model is based on outdated spreadsheet models designed for men's sports, which do not adequately account for factors such as diversity, community, and the fact that women's sports are not a "one and done" type.

The MIT Sloan Sports Analytics Conference, led by CEO and founder Jessica Gelman, has faced a significant challenge in obtaining accurate and reliable data to support and enhance storytelling. These stories have sparked interest and driven engagement, as seen in Caitlin Clark's NCAA scoring record quest. To address this issue, the conference donated to Sports-Reference to help add college women's data back to 1987.

Despite the fact that women's sports have historically struggled to secure prime broadcast windows, consistent airtime, and traditional media coverage, women-owned media companies have taken the lead in promoting their own narratives. This limited visibility has made it challenging to attract brand support, even though research indicates that companies investing in women's sports see lucrative returns.

The main challenge to the growth of women's sports is relying on legacy platforms. These platforms are not designed to support women's sports and increase their visibility. While they may air games, they lack the necessary shoulder programming and coverage to boost the leagues' momentum. Despite rising viewership numbers, the percentage of women's sports coverage on legacy platforms remains stagnant.

The LPGA has overcome two significant challenges in women's sports: investment and exposure. As a result, the total revenue has increased by 65% in the past four years, and total purses have grown by 70% since 2021. This growth is due to strategic partnerships and corporate decision-makers recognizing the commercial value of the LPGA and its potential to make a positive impact on the world.

What are some ways women's sports can use milestone events in 2023 to increase their audience?

Katrina Adams, a former pro tennis player and ex-CEO of the United States Tennis Association, believes that the Women's Tennis Association has demonstrated to other professional sports how they can achieve success by using their voice and talent. She points to the success of young women like Caitlin Clark, Sabrina Ionescu, and Coco Gauff, who were the highest paid athlete last year, as examples of the many opportunities available for young women to use their platform to speak up and speak out on issues related to equality in sports.

Berman believes that we need to transform these moments into a movement to achieve sustainable growth and investment. To do this, we must demonstrate and discuss consistent data points that show the business is being built in a more consistent manner. This will help debunk the narrative that these are one-off success stories.

Pamela Duckworth, head of Fubo Studios at FuboTV, emphasizes that female athletes are multifaceted individuals who are also mothers, businesswomen, philanthropists, and media moguls. She suggests utilizing the attention-grabbing moments in sports to highlight athletes' stories and connect with broader audiences.

Engelbert: Sports is all about marketing, and if you look back at the NBA's history, it was the rivalry between Magic Johnson and Larry Bird that put the league on the map and led to multibillion-dollar deals. Then it was Michael Jordan's marketing genius that made the league even more successful. However, to be successful in sports marketing, you need capital to advertise and promote games or events of consequence. Our current marketing strategy involves building household names, creating rivalries, and promoting games or events of significance.

Amy Howe, CEO of FanDuel, emphasizes the importance of positioning female athletes, such as Ionescu, A'ja Wilson, and Breanna Stewart, in the mainstream at parity with their male counterparts. The 3-point competition served as a perfect example of this. The increased investment and support for female athletes have resulted in improved performance, which has led to greater success in businesses like FanDuel, where there was a 270% increase in bet counts on women's sports and a 101% increase in handle, or amount wagered. This is a real flywheel effect.

Adams believes that the NIL (Name, Image, and Likeness) legislation presents an opportunity for women to finally be recognized and earn a living in sports. For years, men have had this opportunity "under the table," but now women can do it legally. This will allow them to make a little money and grow the sport in their communities, cities, and college towns. Adams thinks it's great that women are learning how to become entrepreneurs at a younger age and are doing extremely well.

Duckworth's NIL policy opens doors for female athletes to build their own brands in ways that were previously unavailable. Why shouldn't female athletes have the same financial opportunities as their male counterparts? In my opinion, financial independence is just as important for women as it is for men. Major sports stars like Angel Reese and Caitlin Clark are setting a great example for young women by demonstrating what can be achieved.

The positive impact of NIL on women's college athletics has resulted in a situation where all boats rise. As more female athletes gain recognition, the investment in women's sports is likely to increase, motivating more young girls to participate in sports.

Rosen: While the idea of women athletes growing their brand and monetizing their talents is commendable, it's important to address the challenges that arise, such as team dynamics and the potential for NIL deals to compromise long-term development.