Walt Disney Company (DIS) CEO Bob Iger will return to the company as CEO in November 2022.
In addition to leading Disney, Iger may soon add sports team owner to his title.
What Happened: Disney is no stranger to sports, having owned the ESPN brand and the Anaheim Mighty Ducks (NHL) and Anaheim Angels (MLB). The company’s CEO is nearing a deal to acquire a stake in Angel City, a women’s soccer team that plays in the National Women’s Soccer League (NWSL).
Semaphore reports that the deal values Angel City at $300 million, making them the most valuable women’s sports team in the world.
According to reports, Iger and his wife Willow Bay are set to take control of Angel City FC, which would give them a larger stake in the company than Reddit co-founder Alexis Ohanian, who currently owns the shares.
Unlike many other sports teams, the team does not have a majority shareholder. This unique ownership structure may have sparked recent bickering among owners, some of whom have resented increased spending. The Los Angeles Times reported that the team has hired Moelis & Co. to find an investor to take control of the team’s board of directors.
The Bay Iger Group reportedly plans to invest at least $50 million in the team. Bay and Iger beat out several other interested parties, including former Milwaukee Bucks (NBA) owner Marc Lasry and Abby Glazer, a member of the Glazer family that owns soccer team Manchester United MANU and the NFL’s Tampa Bay Buccaneers.
Bay and Iger’s pitch deck shared by Semaphore highlighted their 25-year residency in Los Angeles, their ability to lead media companies and the team’s growth initiatives to expand its international reach and connect the team to major Los Angeles events.
Related article: Retiring on top? Boston Celtics put up for sale after winning NBA championship, big contract for star player
Why it matters: Sports teams have consistently achieved record valuations and outperformed in recent years.
Angel City’s owners include several celebrities, including Natalie Portman, America Ferrera and Eva Longoria, as well as athletes such as former soccer players Abby Wambach and Mia Hamm, Serena Williams and Billie Jean King.
Disney is the NWSL’s media rights partner as part of a $240 million, three-year deal signed by ESPN, Paramount Global Inc., Amazon.com Inc. AMZN and Scripps Company SSP in November 2023. It was not immediately clear how Iger’s relationship with Disney and the teams will affect the rights agreements.
Sportico’s NWSL team rankings have Angel City valued at $180 million in 2023, double the next highest value of $90 million for the San Diego Wave, which sold earlier this year for a then-league record $113 million.
Sportico rankings put the City of Angels’ annual revenue at an estimated $31 million, nearly double San Diego’s $16.3 million.
Sports teams continue to attract the interest of billionaires and investors, with Jeff Bezos potentially selling his Amazon shares to buy an NFL team.
NFL star Patrick Mahomes is a part-owner of NWSL team the Kansas City Current.
Investors looking for public shares linked to sports ownership have limited options, with soccer-related options including Manchester United and Juventus JVTSF.
Ares Management Inc. (ARES) is an investor in Inter Miami, the Major League Soccer (MLS) team that signed soccer superstar Lionel Messi last year.
MLS team Toronto FC counts Rogers Communications (RCI) and BCE Inc (BCE) as team owners with a 37.5% stake each.
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