Inspired By NBA & MLS, NWSL Lays Down New Ownership Rules Due To Conflict of Interest

NWSL is scaling new heights in 2023. The league under the leadership of its Commissioner, Jessica Berman, has been reforming many of its systems recently. After bringing in additional technology like VAR and also kit upgrades, the women’s league in the United States has now framed new ownership policies. According to reports, the competition has placed restrictions on firms that can invest in multiple teams to avoid conflict of interest. Such policies do exist in top sporting leagues such as the NBA, MLS, and others.

NWSL, in its growing phase, attracted a lot of investors including athletes from multiple sports. Even private investment firms like Sixth Street and Arctos Sports Partners have also shown interest. Hence, to curb the chances of potential misuse, NWSL will only allow such private equity firms to have a certain percentage ownership in a maximum of three teams, as reported by Sportico. Additionally, if investing in multiple teams, it can only have a share from 5% to 20% of the team’s value.

On the other way around, the teams also have a restriction of selling a maximum of 30% of their stake to such funds overall. The idea of the new policy is to avoid favoring one team over another. Also, this rule is only applicable to private equity firms that invest in multiple franchises. However, investments in a single team will not have a restriction. Additionally, the rules also prevent some types of institutional capital, such as sovereign wealth and pension funds, from investing in the league. This could be allowed in the future if the policies change.

READ MORE – Meet Alex Morgan’s Husband Servando Carrasco: Everything to Know About USWNT Star’s Ex-MLS Partner & More

NWSL has taken this proactive measure which is used predominantly by NFL and other leagues that have stricter rules. NFL does not allow such investment firms to share the team’s quota. But NBA and MLS have the option of selling 30% of their shares to such businesses, just like NWSL, with MLS having a minimum investment of $20 million. 5% is the minimum in NWSL which is getting innovative this season.

NWSL aiming next level with creativity

The NWSL is making waves in women’s sports in the US. In an interview, last year, Jessica Berman explained why they worked so much to safeguard the types of investments. She said, “We have to create an environment that sets us up for success, and that can be a proof of concept for other leagues going forward. I would argue that we’re pioneers, and I think it will work to our benefit”. Well, those weren’t the only planned changes.

Initially announcing that the NWSL would have a VAR facility starting this season, it also added that there would be additional viewing enhancement for the fans with more cameras. Moreover, the most exciting thing for the fans is the concept of adding cultural influence to the kit aesthetics. The kits of each club have a story behind the gear they wear and the plain white kits have been banished. Overall, NWSL is ready for the start of the 2024 season, while laying a strong ownership foundation.

READ MORE – “I Could Play Another Year”- Ali Krieger Unwraps Real Reason Behind NWSL Retirement