NCAA women’s basketball has skyrocketed in popularity over the past few years. Sports Innovation Lab co-founder and CEO Josh Walker joins Yahoo Finance to discuss this trend in the business of women’s sports.
Walker said that building media support for women’s sport involves more than just advocacy for equality, it also involves data showing increased engagement. It’s now being translated into ROI from an investment perspective. “A transition has happened. When we started looking at the data behind this story, it started to translate into what these brands could be behind. Media companies are now spending real money on media rights, including Morgan Stanley (MS), Klarna, Scripps (SSP) and EA Sports, but many others Brands are now committed to investing in ensuring that women’s sport is properly funded in the future.”
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Editor’s note: This article was written by Nicholas Jacobino
video transcript
Josh Lipton: Women’s college basketball has skyrocketed in popularity over the past few years. However, the question remains whether women’s sports can continue to build on this hype. Josh Walker, co-founder and CEO of Sports Innovation Lab, joins the discussion.
Josh, nice to meet you. Josh, it looks like real change is happening in women’s basketball. Josh, the energy and enthusiasm that Caitlin Clark and Angel Reese are creating right now. What do you think after all, Josh? This really only affects women’s sports across the business.
Josh Walker: Well, I think we need to zoom out a little bit. First of all, their names are really cool. It feels like sports has become part of the common language when we talk about sports these days, and it’s amazing.
We noticed this trend coming about three years ago. And we need to actually zoom out. This is not an overnight success. This isn’t just about Caitlin Clark.
This is a phenomenon that has been growing for some time. Women’s sports really were like a start-up. And it won’t be an overnight success.
We’ve always looked at this in our business, and since the beginning of Title IX, we’re starting to see parity in terms of media distribution, pay, and the college game. It really took decades to build the infrastructure for women’s sport, even at the amateur and youth level, and now we can have this moment that we’re all talking about.
Julie Hyman: It’s interesting because it sounds like a deliberate effort. Certainly, there must be an organic element as well. But talk to me about the intentional part.
What is that infrastructure like? What are the efforts of different people like you who are trying to build this fan base? How have you done it?
Josh Walker: Yes, we did it with data. And we started with evidence that this industry seemed to have been missing for a long time. Much of the marketing of women’s sport was based on equality and emotion. It’s right to convey some kind of message.
My co-founder is Angela Ruggiero, one of the greatest hockey players of all time. She is in the Hockey Hall of Fame. She is very good friends with Billie Jean King. She really took charge and said this is about the business of sports. This is not the right thing to do. This is the right investment.
And my CMO, Gina Waldhorn, runs a group of about 300 women called the Women’s Sports Club. I mention that because 300 executives are coming together to talk about women’s sports and discuss investment opportunities in women’s sports. So if you ask me about infrastructure, infrastructure is a groundswell of sentiment that now translates into her ROI from an investment perspective.
And I think when that transition happened, when we started looking at the data behind this story, it started to become something that these brands could get behind. Media companies are now spending real money on media rights. And then there’s Morgan Stanley, Klarna, Scripps, and esports. Many other brands are also stepping up and investing in ensuring that women’s sport is properly funded in the future.
Josh Lipton: Also, Josh, I’m curious what you think women’s college basketball means for the WNBA. As a business, Josh, do you think that will help the league gain even more momentum?
Josh Walker: Without a doubt. This week we shared a lot of data with you and showed you how the WNBA is trending as a result of some of the momentum from March Her Madness. Now, remember that March Her Madness was not a logo or mark that could be used in the women’s game in the past.
Just stamping the legitimacy of this eternal tournament is just giving the WNBA such momentum heading into next season’s draft. The WNBA has done a great job. They are developing new apps and doing more at the marketing and team level.
So we’re working closely with the WNBA and are very impressed with how they’re professionalizing the game. But make no mistake, they benefit from the big names coming out of college basketball.
Julie Hyman: Also, Josh, who are the fans here? Are there a lot of women? Are you a young woman? And what is the purchasing power of this group?
Josh Walker: We spend so much time people denying the idea that only fathers and daughters go to games. We’re showing that there’s really a huge amount of interest in all women’s sports. And it’s not just basketball, there may also be softball fans who watch basketball who tend to go out to enjoy a night out with their family.
This is a very balanced fan base. It’s not a single demographic. It’s not one kind of fan.
I think the most powerful thing the data shows is that they are actually buying more products and services. We did some really great research with the WNBA that showed that when the WNBA started working with her CarMax, CarMax consumers were rewarding the WNBA with their business. And when you look at the data, I think there’s a really great relationship that shows they want these brands and they want these leagues to work very closely together.
