The National Women's Soccer League awarded a new expansion franchise in Columbus, Ohio, to an ownership group led by Haslam Sports Group for $205 million last week—a $40 million jump from the $165 million that billionaire Arthur Blank reportedly paid for Atlanta's franchise in November and a $55 million increase from Denver's reported $110 million fee in January. Just three years earlier in 2022, expansion fees for new NWSL clubs stood at just $2 million.

Market Context

The surge in women's soccer valuations reflects a broader dynamic reshaping sports investment across the industry. Average NFL team values have climbed to $7.65 billion, while NBA franchises now average $5.52 billion—up 18% year-over-year and representing a 1,396% increase from 2010 levels that far outpaces the S&P 500's 422% gain over the same period. The astronomical price tags are pushing would-be owners toward alternative leagues.

Analysis

According to investors and bankers interviewed by CNBC Sport, what's driving valuations in smaller leagues has little to do with soccer itself and everything to do with a trickle-down investment thesis fueled by NFL and NBA media rights windfalls. The NFL's landmark 11-year, $111 billion media rights deal signed in 2021—and its push for even more money—has set the floor for all professional sports valuations. The NBA followed with an 11-year, $77 billion agreement starting this season.

"There's a lot of demand to get into the sports business but people can't write the checks to buy into the big four anymore," said Sal Galatioto, president of Galatioto Sports Partners. "So what they're doing is they're substituting. When supply is fixed and demand goes up, people will bid more to win."

The dynamic has created bidding wars at price points that remain accessible compared to NFL and NBA stakes. Even minority ownership positions in top-tier franchises have become prohibitive—former New York Giants quarterback Eli Manning told CNBC Sport last year: "It's too expensive for me. A 1% stake valued at $10 billion turns into a very big number."

The San Diego Padres recently finalized a sale for $3.9 billion, setting an MLB record yet still remaining well below average NFL and NBA valuations. Bankers report increased inquiries from investors seeking alternatives in MLB, NHL, and emerging leagues.

"I've got investors coming up to me saying, 'I can't afford the NFL and NBA, what do I have for me in MLB, NHL?'" said one prominent sports banker who requested anonymity due to private discussions.

The ripple effects extend even to nascent leagues. Major League Cricket values have climbed from $5 million to approximately $30 million, while Major League Pickleball franchise values surged from $5 million two years ago to $15 million or higher today, according to Rick Horrow, CEO of Horrow Sports Ventures.

Key Numbers

- NWSL Columbus expansion fee: $205 million (2026) vs. $2 million in 2022—a 10,150% increase

- Average NFL team value: $7.65 billion (up from ~$1 billion in 2010)

- Average NBA team value: $5.52 billion (18% year-over-year increase; up 1,396% from 15 years ago)

- S&P 500 performance since 2010: approximately 422% gain for comparison

- NFL media rights deal: 11 years, $111 billion (signed 2021)

- NBA media rights deal: 11 years, $77 billion (starting 2025 season)

- Arizona Cardinals valuation: $5.9 billion; Memphis Grizzlies: $3.75 billion—lowest-revenue teams in their respective leagues

What to Watch

Monarch Collective managing partner Jasmine Robinson cautioned that while sports have historically generated strong returns, "that's really only for the biggest leagues." Her firm, which has $250 million to deploy across women's sports, is focusing on WNBA and NWSL franchises it believes will remain above any economic threshold if market conditions shift. The critical test lies ahead: WNBA franchises have historically never turned profits and now face higher player costs following this year's collective bargaining agreement. Bernstein equity research noted NFL valuations have risen approximately 17 times in 25 years—returns that "easily trump the S&P index or any emerging market index on the planet"—raising questions about sustainability at current valuation multiples for smaller leagues.

The next pressure point will likely be media rights negotiations, particularly concerns that "second-tier" sports including MLB and NHL may lose negotiating leverage as NFL demands escalate from its broadcast partners. How those dynamics play out could determine whether current valuations across the sports ecosystem represent a new equilibrium or an unsustainable peak.