Negotiations between Chelsea FC and a potential buyer are still in their infancy and it is difficult to predict whether a deal will be finalized. As for Mercury 13, neither side has responded to the reports.
On the news of the share sale, fans have different views, from questioning the "businessman money" to optimistic about the "development of women's football", the public opinion shows a sharp polarization. For the final round of the league debut, some netizens flirted with the idea that this was "a survey of the team's valuation". Although the details of the negotiations are not yet transparent, we can already see the subtle changes in the team's ownership and valuation.
Is it confidence or over-inflation to value America's top women's soccer team? As negotiations move forward, the question of the team's valuation takes center stage. So what does a $100 million valuation of a women's soccer team really mean?
Chelsea Women's Soccer, the top team built by accomplished coach David Hayes, has won the league eight times since its inception in 2008, won the FA Cup five times and the League Cup twice, and reached the semi-finals of the UEFA Champions League on several occasions. Such achievements have made Chelsea one of the most successful clubs of the WSL era and have set the stage for its valuation.
Following the model of men's football, a top team is usually valued at five to seven times revenue. Based on average monthly revenues of £8.8 million in June 2023, Chelsea Ladies should be valued at between £40 million and £60 million. However, a valuation of $100 million is almost 17 times its revenues, far beyond the usual category.
Chelsea Women's Soccer has a significant presence in the National Women's Soccer League (NWSL), and its valuation has been affected by the transactions of other teams in the NWSL. In March, the San Diego Wave soccer club was sold for $120 million, while Seattle's King's Landing team was sold for $58 million, deals that have paid off handsomely for the former owners.
In addition to attracting numerous investors and realizing high returns, Chelsea Women's Soccer has also gained the attention of the Angel City team in the NWSL. The team, founded by movie star Natalie Portman, has attracted numerous investors, including the Williams, and has a well-established sponsorship system and cross-regional operations. Angel City is currently seeking a new round of financing at a valuation of $180 million.
TheAthletic reports that Chelsea Women's valuation references the City of Angels benchmark, with the club looking to become one of the most famous women's soccer team brands in the world. According to Deloitte's list of European women's soccer clubs' revenues for the 2022-2023 season, Chelsea Ladies are ranked No. 6, with revenues of €4.1 million, behind top clubs such as Barcelona and Manchester United.
In the U.S., City of Angels, with $31 million in revenue, is the most profitable women's soccer club in Europe, according to Sportico, a sports finance media outlet. This suggests that the commercialization of women's soccer in the United States is at a much higher level, both in terms of the overall environment and the development of individual teams.
By way of comparison, Chelsea's $100 million valuation seems to have a more concrete basis. Some see it as a reflection of the market's bullishness on the potential of women's football, while others see it as a reflection of the businessman's quest to maximize profits.
However, there are many differences in the environment in which women's soccer teams develop in Europe and the United States, such as spectator bases and league seats. Of these, the issue of ownership is particularly sensitive in this negotiation.
In Europe, women's and men's soccer teams are usually owned by the same entity. Prior to the professionalization of the WSL, women's football in England mostly required financial support from men's football in order to participate in matches, and this `one-woman, one-team' model has been central to the development of women's football culture in Europe.
However, with the development of women's soccer teams, the drawbacks of this model have gradually emerged. It is difficult for women's teams to obtain better resource allocation and player treatment, and to operate independently. Taking broadcasting fees as an example, European women's soccer has yet to sign a sizable broadcasting deal, which is a far cry from the NWSL's broadcasting fees.
Ownership patterns in European women's soccer have also been changing in recent years, with more teams potentially moving in the direction of conglomerate control. For example, American businesswoman Michelle Kang has become the majority shareholder of the Lyon women's team in France. She believes that women's teams need to operate independently and explore business models and training methods that are more suitable for women's soccer teams.
Opponents argue that this culture of "men's and women's teams as one" has been the cornerstone of women's soccer in Europe, and that a premature separation could negatively affect the development of women's soccer. In addition, most women's soccer teams are still losing money and need the financial support of men's soccer.
While there is limited information on the specifics of this negotiation, it has been confirmed that Head Coach of the Year Emma Hayes will soon be coaching in the United States for the first time in the history of the Chelsea women's soccer team. The "In Emma We Trust" posters will no longer be seen in the stands. Let's look forward to what the future holds for this team.
