Seattle Sounders and Carlyle Group agree to purchase Seattle Reign FC for $58M

The GIST: Private equity (PE) giant Carlyle Group and MLS' Seattle Sounders agreed to purchase Seattle Reign FC for $58M, up from the NWSL club’s $49M October valuation. After the surprise sale of the San Diego Wave for $120M, this makes Reign FC the second NWSL team sold within a week, with both fetching more than their previous valuations. Reign like queens.

The details: Former owner OL Groupe announced it sold 97% of its Reign equity on Monday, pending approval from NWSL and MLS owners, while 3% remains with former NBA star Tony Parker. The exact financial breakdown between the PE fund and the Sounders remains unknown, although Carlyle is reportedly providing a majority of financing.

The trend: The PE fund may not take operational control of the club, but this does follow an explosive trend of firms going after NWSL ownership. Sixth Street holds a majority of expansion team Bay FC, Levine Leichtman Capital just bought the Wave, and Angel City FC is reportedly interested in selling a controlling stake, which could go to another PE firm.

• Recent PE interest likely inspired the NWSL to revise its rules surrounding multi-club investment in February. The new guidelines prevent PE firms from owning passive minority stakes in more than three NWSL teams and teams from having over 30% of their total equity owned by multiple PE funds.

Zooming out: Sports ownership has long been a billionaire boys’ club, but the NWSL — recently named one of the world’s most innovative companies — is welcoming investment-forward ownership. Rather than becoming a pet project hinging on the whims of billionaires (hello, NFL), modern sports leagues are shopping franchises as a way to diversify portfolios.

• With funds launching sports-specific arms and seeking investment opportunities across the globe, the NWSL is simply opening itself for business as it rides the surging interest in women’s soccer. Here for it.