NC Courage adding financial investors in a growing trend to support women’s sports
The North Carolina Courage added three new players to its roster Thursday night during the NWSL draft, and the club is set to add new ownership, too.
A securities filing reported by the Triangle Business Journal on Wednesday indicated the Courage had raised $250,000 in equity. NC Courage owner Stephen Malik confirmed to The Observer and News & Observer that the club is looking to broaden team ownership and that there are already a number of commitments in place ahead of the 2021 season.
While the filing shows a total offering amount of up to $5 million, Malik said he might not accept that much. The technology entrepreneur and NWSL team owner since 2017 has not relied on additional equity until now. But for Malik, it was more about the who than the how much, though he declined to provide insight into who that who may be.
“It wasn’t just about the finances,” Malik said. “I think sometimes people put too much weight on that. We’ve gone this long without bringing in outside capital, but as you’ll see as we announce who we’re bringing in, there’s some additional benefit to broadening the ownership base.”
The increased investment in the women’s team comes in the aftermath of Malik’s professional men’s team, North Carolina Football Club, announcing its move from second-tier USL Championship to third-tier League One. Malik said the two clubs’ finances operate independently of each other and that funding was not pulled from one to give to the other; however, there is no denying the Courage and the league it plays in are thriving in ways NCFC is not.
The NWSL implemented a non-traditional Challenge Cup to complete its season during the pandemic and is embracing a new streaming platform in Twitch. The growth of ownership at the Courage also reflects a trend of NWSL ownership growth and league expansion.
League commissioner Lisa Baird announced this past week that Sacramento will be joining the NWSL alongside Angel City FC in 2022. Angel City FC is the Los Angeles-based club founded by actress Natalie Portman, venture capitalist Kara Nortman and gaming entrepreneur Julie Uhrman. Sacramento will be the 12th NWSL team in 2022 after expansion teams Racing Louisville FC and Kansas City make their debut this year.
In terms of its financial future, Malik said he felt confident about new revenue streams and growing sponsorship around the league. He also noted the historical success of the Courage. The team won the 2018 and 2019 NWSL Championships, and has fielded U.S. Women’s National Team players such as Heather O’Reilly, Abby Dahlkemper and Jessica McDonald.
“The competition for the best women’s players in the world is becoming a global competition,” Malik said. “Likewise, on the men’s side, you’re seeing the development of the U.S. player into some of the best in the world, but the men aren’t in the same place as the women. They’re not World Cup champions.”
Malik also said there was a social element tied to the increased investment in the Courage: A trending desire to support women’s sports.
“In this time of social awakening for our country and the world, being aligned with the best women’s pro soccer league is a great fit for really anyone who is trying to reach and support women,” Malik said.
He said ownership had a “very specific use” of the new funds in mind and cited increased investment across “facilities, technology, scouting (and) players.”
Both NCFC and the Courage play at WakeMed Soccer Park in Cary, which seats 10,000 spectators. The clubs will continue to share a stadium after development is complete on the Downtown South project, a $2.2 billion mixed-use sports and entertainment venue in Raleigh spearheaded by Malik and partners Kane Realty and Trademark Properties. The group announced the closing of the final piece of land at the end of last year. Malik said the earliest teams would play at the new venue is three years out, but the pandemic could slow development.
The goal with that project is also to provide more seating for fans. After the 2019 Women’s World Cup, the WakeMed stadium was selling out every game, and the downtown destination could draw a bigger crowd that would benefit both teams.
For now, though, NCFC will remain in League One, which has not yet announced its start date (although league ownership is exploring a potential early May start), and the Courage is set to begin training Feb 1. Malik said club leadership will reassess NCFC’s division status in the future and remains “super excited” about the Courage.
“Yeah, we’re raising capital,” Malik said. “Our intent is to stay one of, if not the best, club team in the world. We have a lot of investments that we want to make to continue to be able to play at that level.”
