Reign like queens

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.

The GIST: On Monday, international media conglomerate Minute Media (MM) struck a multiyear licensing deal with Sports Illustrated (SI) owner Authentic Brands Group for digital and print rights over the next 10 years. While financial terms were not disclosed, Authentic Brands obtained equity stake in MM through the deal. Quite the pick-up game.

The context: The agreement rescues SI from a seemingly dismal future after facing turmoil for decades. Most recently, 5-hour Energy founder Manoj Bhargava took over the helm of former SI publisher Arena Group in late 2023, with a classic tale of mismanagement causing Arena Group to lose its SI publishing license.

• Once the license was revoked, SI planned to shutter its doors within 90 days, laying off at least 80 employees in January. This happened right after SI was caught in an AI-generated content scandal. Can’t make this stuff up.

The details: The initial 10-year deal covers SI’s entire brand portfolio with extension options for two subsequent decade-long deals. In addition to publishing SI, MM now owns FanNation, SI Kids, and the SI Swimsuit edition, which originally had plans to break off from SI entirely.

• The brand is in more capable hands with MM, which has experience running sports media properties like The Players’ Tribune, FanSided, and 90Min. Coincidentally, SI and FanSided were previously co-owned together under former publishing giant Meredith, which also published Time Magazine before its own demise.

Zooming out: SI’s story personified a sports media industry wracked by layoffs in 2023, but its acquisition by a flourishing conglomerate represents a turning point for the brand. MM managed to more than double its valuation to $1B in four years, and at a time when many media companies are struggling, it could mean others will eventually shelter under its corporate umbrella. Rather be dry.

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