The WNBA announced Thursday a new capital raise featuring both new investors and existing WNBA and NBA owners. The league said the proceeds are expected to be used for things like marketing and brand elevation, the globalization of the league and addressing obstacles to growth.
The capital raise was funded via selling equity in the WNBA and was $75 million according to commissioner Cathy Engelbert. She said the needs for better marketing and innovation, in particular, are things she has been working on since taking the job in 2019. Engelbert spent 33 years at Deloitte, where she reached the level of CEO before retiring from the financial industry and becoming WNBA commissioner.
"In order to grow a business, you have to have capital," Engelbert said in an interview with ESPN. "Thanks to this capital raise, we're going to take a huge step forward in our growth strategy, particularly in areas like player marketing and elevating everything we do with our fans. Figuring out how to elevate our players and make sure we're building them into household names. And that we show up more in the places our fans want us to show up and where we can bring in new fans."
NIKE, Inc., which was already a WNBA partner and one of the companies previously branded as a WNBA Changemaker, has made a significant equity investment in the league, Engelbert said.
Among a long list of other initial investors in this capital raise are former Secretary of State Condoleezza Rice, Miami Heat owner Micky Arison, Boston Globe CEO Linda Henry, Michael and Susan Dell of Dell Technologies, and Dee Haslam and Whitney Johnson of Haslam Sports Group (owners of the Cleveland Browns and Columbus Crew).
Also on the investor group are former WNBA player Swin Cash, former NBA players Baron Davis and Pau Gasol and former hockey star Angela Ruggiero. Several current WNBA owners are also involved, including the Dallas Wings' Bill Cameron, the Indiana Fever's Herb and Steve Simon, the Los Angeles' Sparks' Mark Walter, the New York Liberty's Joe and Clara Tsai, and the Seattle Storm's Ginny Gilder.
"We felt if we had this capital, we could have increased marketing and advertising," Engelbert said. "Which in this cluttered social media world you have to very strategic and innovative about. I think there is interest in everything the league stands for and everything the players are doing, both on court and socially and community minded. We looked for investors who shared the values of the WNBA. And who believe women's sports are on the way up and want to get in.
"It's really important that the players know this is investment in them, even though it's in the league and not a specific team or just specific players. It's to help grow our revenue streams and produce sustainable long-term growth."
The WNBA will begin its 26th season in May.