💡 The Economics Behind Women’s Sports

Historically, female athletes have struggled in relation to their male counterparts.

Especially when it comes down to the dollars they're able to command on and off the playing field.

But with web3, I believe that could change soon.

Let’s get into it👇

Addressing The Disparities In Women's Sports

It's no secret that women have faced severe disparities in different industries throughout the professional world.

Despite making strides over the years, in sports, it's no different.

In fact, check out the contrast in average player compensation between men and women in these top sports:

But the blame is not solely on the leagues and organizations.

Women's sports experience a number of issues, but all of which can tie back to the disparity in pay:

• Lack of media attention: Women's sports don't receive the same coverage as men's sports in most cases. Since advertising and sponsorships are often tied to media coverage, they also receive fewer advertising and sponsorship opportunities. This creates a vicious cycle where less media attention leads to less revenue, which leads to even less media attention.

• Lack of funding: Women's sports are often underfunded compared to men's sports, which means that they don't have access to the same resources, equipment, and training as men's teams.

• Societal expectations: There is still a prevalent cultural attitude that sports are for men, and women's sports are not taken as seriously. This leads to lower participation rates among girls and women and fewer opportunities to advance their athletic careers.

• Limited opportunities: There are fewer opportunities for women to play sports at the collegiate and professional levels, which limits their chances to compete at the highest levels.

Now, athletes such as Serena Williams, Simone Biles, Alex Morgan, and Sue Bird have all played a significant role in helping women gain more notoriety throughout sports.

Platforms like Togethxr and Just Women’s Sports have also developed niche spaces to amplify women's sports.

Even commentators and analysts such as Monica McNutt, Taylor Rooks, and Chiney Ogwumike have greatly impacted the current landscape of women’s sports and media.

But even though all of these things are a huge step in the right direction, the fact still stands.

Women's sports have been largely unprofitable which drastically affects how much the athletes are able to make.

Recently, there have been countless discussions about fixing the money problems for female athletes.

But at the end of the day business is business and the money has to come from somewhere.

The question is where?

If women's sports leagues can't generate more money due to a lack of funding and media attention, we'll just continue to be caught in a never-ending cycle.

But in a day and age where technology is so pervasive in sports - I believe blockchain can help create a more equal playing field and give female athletes more ownership over their careers.

Here's how...

What Can Web3 & Blockchain Do To Help?

The beauty of web3 technology is, in theory, it has the power to give athletes of all levels ultimate brand leverage.

Athletes are able to have more control over their IP and data.

They’re able to circumvent middlemen and go directly to their fans in certain regards.

And they’re able to use this revolutionary technology to create additional streams of revenue.

With web3, female athletes, who historically have been disenfranchised and pushed aside, are in an incredible position to command bigger dollars by going directly to those who support them the most.

They don't need to rely on the leagues.

They just need to bet on themselves.

Let's take Haley and Hanna Cavinder for example...

The twins, who transferred from Fresno State to the University of Miami last year, have essentially been the face of NIL for women's sports netting many seven-figure deals in the process.

Even though they aren't the best female hoopers in college basketball - they just might be the most marketable given their social influence.

The platform they've built has given them deal opportunities that compete with the likes of NFL and NBA players.

With blockchain, I see an even bigger opportunity for them...

Due to the partnerships that they have with these big brands, they're able to gain an enormous amount of exposure and access to a new audience.

I've always been adamant about using web3 to engage first, but if the audience sees value - then there is a path to drive revenue.

Just imagine if the twins were able to accumulate all of that data from this audience as well as their current fans and leverage it in any way they want.

With blockchain, essentially they could:

• Start their own private community using NFTs

• Tokenize their audience and give them ownership in their careers

• Launch a phygital product line

And these are just a few examples off the top.

Building a brand as an athlete these days isn’t as much about what you do on the playing field as it is about how marketable and engaging you are online.

Of course, performance still matters, but as you can see, personality is super profitable.

With blockchain technology - the dynamics of the relationship change and put more control into the creator's hand.

No more waiting for a bump in salary.

No more pleading with the union.

No more relying on someone else to advocate for you.

Whether an athlete wants to create an exclusive NFT collection, create their own token or create digital/physical product offerings, there are tons of options for athletes to increase revenue through blockchain technology aside from traditional brand deals.

Personal branding isn't a new concept, but it's becoming more important by the day.

People don't do business with logos.

They do business with people that they know, like, and can trust.

This is why personalities like Mr.Beast, Charlie D'Amelio, and Khaby Lame have made hundreds of millions of dollars in revenue in what seems like overnight with their personal brands.

They've leveraged social media to create content.

Built an audience.

Gained the trust of that audience.

And made millions in the process.

I believe it's only a matter of time before the next female athlete-creator does the same.

The next generation of female athletes will have access, control, and opportunities that can potentially change the course of how much they're willing to earn.

If there was ever a time to bet on women, I think that time is now.

Appreciate you reading!

Talk again soon,

Malcolm

This newsletter is for informational purposes only and is not financial or business advice in any capacity. The information shared is my thoughts & opinions and does not represent the opinions of any other person, business, entity, or sponsor. The contents of this newsletter also should not be used in any public or private domain without the author's express permission. The contents of this newsletter should not be used for any commercial activity, for example, research report, consultancy activity, or paywalled article, without the author's express permission.