This is the second of three parts. Part I explored the questions: (1) Is college basketball more stable economically -- or too dependent on television revenues -- as it continues to hunt for new finances? (2) Is college basketball really a "professional sport" or a "learning experience" for its student-athletes? (3) How should the college basketball industry respond to controversial special revenue sources such as gambling and alcohol? Part III will look at revenue distribution from the men's tournament and its specific impact on St. Louis.
The business of women's basketball is an exploding revenue generator.
Television ratings and attendance are up, and Corporate America is in love with the sport's demographics. The culmination of this year's 64-team tournament will be at the cavernous RCA Dome in Indianapolis -- another testament to the power of women's college basketball.
Similar to the men's game, college parity is making the sport grow even bigger.
No single school has successfully recruited more than two of the 20 players chosen to play in this year's Women's Basketball Coaches Association high school All-Star Game. (In past years, Tennessee and Connecticut have had as many as five recruits in the game.)
Marquee players such as UConn's Barbara Turner continue to generate excitement, as do the Lady Owls, playing at Temple under former NCAA/WNBA phenom Dawn Staley. As the sport continues to thrive, three major issues dominate the business of women's college basketball.
TV and women's college basketball
Two years ago, the NCAA reached a $200 million, 11-year deal with ESPN that showcases all games of the women's NCAA basketball tournament along with softball, volleyball, swimming, Division II basketball and other sports. The deal will produce more than $15 million annually for overall promotion and distribution to individual programs, well over the prior $2.7 million annual payment.
Over the past three years, the women's Final Four averaged a 2.64 rating. The 2004 Connecticut-Tennessee national championship game averaged 3.8 million households -- becoming the most viewed basketball game (men's or women's) in ESPN's 25-year history.
More female viewers continue to watch sports than at any time in TV history. Women make up nearly 40 percent of the network viewing audience for regular season professional sports -- 30 percent of the men's college basketball audience, and up to 40 percent for women's basketball. The sought-after demographic provides a solid foundation from which to build.
Corporate America and the women's tournament
Corporate marketing executives continue to fall in love with the demographics of women's sports -- college basketball in particular.
Surveys have indicated that women make 85 percent of consumer purchases and influence 95 percent of all buying for sporting goods and services. A study done two years ago by The Sports Authority retail chain indicated that women shoppers drove 70 percent of its business.
In addition, female sports fans have been the most avid and loyal of all. Scarborough Sports Marketing revealed that 58 percent of the female demographic claimed to be avid sports fans.
Not surprisingly, women's sports have surpassed $1 billion in total sponsorship revenues. Such companies as State Farm, Gatorade, Lady Foot Locker, Anheuser-Busch, Sears and Nike have partnered with the NCAA women's basketball tournament, WNBA, LPGA and other women's sports programming.
Men's pro sports leagues are beginning to market merchandise toward women as well.
For example, the NFL has sold $3.2 billion in annual retail products to women, and more is on the way. The Sporting Goods Manufacturers Association reports that over $49.8 billion was spent last year on overall retail equipment, a number that will rise significantly over the next few years.
While corporate-sponsored “bracket challenges" on the women's side are still in early growth mode, the “sneaker wars" prevalent at the men's March Madness are as significant at the women's NCAA basketball tournament.
Of the 64 schools in the tourney, the breakdown goes like this:
- 53 -- Nike Swoosh and/or Jordan logo
- 9 -- Adidas
- 1 -- Reebok
- 1 -- Dartmouth -- apparently has no shoe or uniform deals
As Corporate America continues to be extremely bullish on the purchasing power, television viewership and loyalty of women sports fans, advertising dollars will continue to flow to support athletic programs. Total U.S. ad spending through the first three quarters of 2004 was $102.5 billion, up 10.3 percent from the comparable 2003 quarters. Look for continued positive support from big business.
Future of Women's college basketball
Three major issues will have a lasting impact on women's college basketball for years to come: Title IX, the WNBA, and overall aggressive promotion.
First, Title IX continues to have a profound effect on the business of college sports. Though men's Division I college programs have suffered a net loss of 174 athletic teams since 1998, women's collegiate sports programs continue to receive more revenue than ever.
A 2003 ruling by United States District Court for the District of Columbia Judge Emmett Sullivan upheld the enforcement of Title IX -- rejecting the claim that the law “promoted women's collegiate sports programs at the expense of male athletic teams."
On the other hand, women still represent only 41 percent of college athletes, and received only 21 percent of sport-specific operating funds five years ago. Yet as outside revenues increase, pressures to allocate departmental funds will also increase proportionately.
Second, the WNBA continues to provide significant long-term incentive for the female athlete to play college basketball. Originally conceived as summer programming for NBA-controlled venues, the WNBA doubled to 16 teams during its first four years. Recently streamlined, the league finished last year with 13 teams, adding Connecticut and San Antonio to the mix.
Averaging 8,571 fans per game, the league is attempting to expand its demographic beyond its 75 percent female fan base.
In the meantime, television ratings for the league were relatively flat last year, though sponsorship revenues saw double-digit increases. The high media profile of playing, now broadcasting stars like Lisa Leslie, Cheryl Miller and Stacy Dales-Schuman has helped build exposure and respect.
Armed with a new Collective Bargaining Agreement, the league is poised for long-term, responsible growth. Though the league lost over $12 million in its first eight seasons of operation, executives predict that the WNBA will be “profitable by the 2007 season." After all, founding commissioner Val Ackerman notes, the NBA took a decade to stabilize after its inception in 1946.
Finally, aggressive promotion will continue to be critical as women's college basketball takes center stage. The Women's Sports Foundation unveiled a multimillion dollar Internet awareness campaign to generate over $200 million worth of impressions promoting women's sports.
Gatorade, Wrigley, Russell Corp. and Advanta have signed on to the WSF "GoGirlGo!" marketing campaign, to help get one million girls to participate in regular physical activity and keep one million active girls from dropping out of physical activity. And in the most telling stat, the number of high school girls who have participated in sports has risen more than tenfold since 1992.
The NCAA women's college basketball tournament is the economic highlight of the business of women's sports. Though participation in all levels of basketball has decreased over 25 percent during the past decade, over 10 million fans attended NCAA women's basketball games last year -- a record. The 1,008 Division I, II, and III NCAA women's basketball teams continue to rely on television revenue distribution, corporate sponsorship, and creative marketing to grow the sport at all levels as women's March Madness culminates in Indianapolis on April 5.
