Rise and shine

The GIST: Yesterday, LOVB (pronounced LOVE) announced $100M in funding led by Atwater Capital, along with existing supporters Ares Management and Left Lane Capital, bringing its total of funds raised to $160M. The GIST spoke with LOVB CEO Katlyn Gao yesterday about what this means for the volleyball brand at every level of the game.

The background: LOVB raised $16.75M in its initial Series A funding round in 2022, followed by a $35M Series B round in 2023. While previous rounds have been celebrity-backed, the latest funding comes from entertainment-focused private equity (PE) firm Atwater Capital and Left Lane Capital, which Gao noted is focused on newer, cutting-edge brands.

• LOVB has also been backed by prominent sports investment funds, including David Blitzer’s Bolt Ventures, Verance Capital, and Elysian Park Ventures, not to mention funding from women’s sports icon Billie Jean King. Smashing.

The model: LOVB first launched in 2020 by establishing youth volleyball clubs across the U.S. Now, it's the largest junior club volleyball community in the U.S. and has worked to build a unique youth-to-pro pipeline that includes having them train in the same facilities.

• Launching its pro league in year five was “intentional,” Gao explained. “We didn't want to build the next major league without having built a strong foundation. That genuine connection between our youth players looking up and seeing these international superstars practicing next to them, that's a level of connection that money can't buy.”

• She notes that LOVB intends to continue to invest in its foundational youth clubs through improved infrastructure and resources. On the pro side, Gao wants funding to ensure athlete support and brand activations that build “genuine brand affinity…in a way that also brings awareness for LOVB as well.”

The brands: Gao emphasized how the volleyball league has been able to attract newcomers to sports, such as Spanx and Revolve. Additionally, LOVB’s partnership with smart gym brand Tonal is unlike anything the company has done previously with a sports league.

Zooming out: LOVB’s commitment and growth at the club level has allowed it to win over many Gen Z and millennial women and uniquely positions the league for immediate success — which is why newcomers are looking to cash in. Cha-ching.

The GIST: On Wednesday, talent agency Wasserman’s women-focused research branch The Collective released The New Economy of Sports – Part II, produced with the Royal Bank of Canada. The report offers unparalleled insights into how the growth of the WNBA and NWSL will result in huge returns for investors.

• By leveraging 40 key indicators such as market dynamics and team performance, the study projects that NWSL and WNBA teams combined will increase in value by at least $1.6B in the next three years, bringing the cumulative value of these teams to more than $4.3B. She is the moment.

📺 Media rights unlock revenue like nothing else. By 2027, Wasserman estimates the WNBA will see 32% viewership growth while the NWSL will see a 24% boost, likely thanks to their new media rights deals worth $2.2B and $240M, respectively. Both leagues also expect meteoric rises in attendance — 48% for the W and 42% for the NWSL YoY.

💪 Women’s sports fans are movers and shakers. Wasserman followed up existing research by finding fans of WNBA clubs are 13% more likely to buy merchandise from their favorite teams compared to NBA fans. Women’s supporters are also 18% more likely to be younger and 67% more likely to earn higher household incomes than men’s sports fans.

💥 New teams are blowing up the leagues. Expansion franchises account for 40% of league valuation growth, which tracks for newer NWSL clubs like Angel City FC, San Diego Wave FC, and Bay FC. While the W’s latest expansion teams have yet to officially hit the court, the Golden State Valkyries have a record 20K season ticket deposits, while Portland’s team has at least 7.5K.

✨ Celebrities are cashing in. Unlike the typical billionaire boys’ clubs in men’s leagues, WNBA and NWSL teams often have diverse ownership models, which has allowed PE and celebs to get in on the game. WNBA and NWSL teams are 1.7x more likely to have celebrity owners compared to NBA and MLS teams — nearly 40% of W teams already have a famous owner.

💰 Brands are lining up for coveted real estate. Top NWSL clubs command $1.4M average annual value (AAV) for front-of-kit sponsorships, and leading W teams earn $1.1M AAV for front jersey patches. It counts to get in front of women’s sports fans — they’re 54% more aware of and 45% more likely to consider buying from brands supporting the women’s game. Putting women first pays off.

Want to show off your support for women in sports? We thought so. And with The GIST’s capsule collection, you can. The pieces are sporty, bold, and playful…just like our GIST community.

Speaking of, this drop truly has something for everyone: Basketball-specific threads for hoops fans, “leveling the playing field” looks if you love making a statement, and tennis tees if you want to, ahem, serve.

But don’t just take our word for it, check it out for yourself. Happy shopping!