Discovery Communications Chair & CEO John Hendricks
announced yesterday that major U.S. media companies and
individual investors have joined with some of the top U.S.
women soccer players to form the Women's United Soccer
Association (WUSA), which is scheduled to launch in spring
2001. Hendricks said that investors are working to finalize
the first round of financing, which is scheduled to close by
April 1. A minimum of $40M is set to be provided by the
initial investors to fund a minimum of eight teams, plus
league administration, during the first five years of WUSA
operations. The league may expand to as many as 12 teams
during that five-year period. To secure more financing,
additional investors may be added. Hendricks will serve as
Chair of the WUSA's Board of Governors and is Chair and
Managing Member of Women's Pro Soccer, LLC, the single
entity group through which the WUSA will be developed. WUSA
investors and members who will serve on the Board of
Governors include: Former Continental Cablevision Chair &
CEO Amos Hostetter Jr., Cox Enterprises Chair & CEO James
Kennedy, Cox Communications President & CEO James Robbins,
Comcast Corp. President & CEO Brian Roberts, Comcast Corp.
VP/Programming Investments Amy Banse, Time Warner Chair &
CEO Joseph Collins and Time Warner Senior VP/Programming
Fred Dressler. In addition, former U.S. women's coach Tony
DiCicco and former SFX/The Marquee Group exec Lee Burke are
assisting in the league's formation. Each of the investors
will provide staff and facility resources along with TV and
promotional support for the league (WUSA).
ALIVE AND KICKING: In N.Y., Lena Williams reports that
investors "have put up" $5M each, which "gives them local
team operating rights for a particular market." Williams
writes that 15 cities are under consideration for the
initial eight teams. Hendricks said that he "has filed an
application" with the USSF for professional league
membership, and USSF Dir of Communications Jim Moorhouse
said that the league "would be sanctioned within two
months." But Williams writes, "There is no guarantee that
the Hendricks group will be sanctioned by the federation."
The players "would earn an average of about" $40,000 per
season, which "would be supplemented based on the
performance of the league and annual revenues" (N.Y. TIMES,
2/16). In Toronto, Michael Grange reports that the WUSA "has
working agreements with the entire roster" of the U.S.
women's soccer team. Grange adds that WUSA's "corporate
backing provides the kind of cable television and
promotional reach that are vital for success in today's
sports market" (GLOBE & MAIL, 2/16). Hendricks, on the U.S.
women's soccer team: "There's enormous drawing power that
they've been able to generate. People realize the value
here" (ATLANTA CONSTITUTION, 2/16). Hendricks: "We would
like to see the teams not playing in monstrous stadiums. We
want to have festive crowds and create a scarcity for
season-ticket sales." More Hendricks: "If we have all the
stadiums in place by November 1, we'll launch in April 2001
(ST. LOUIS POST-DISPATCH, 2/16). The WALL STREET JOURNAL's
Sam Walker writes that if the WUSA "goes forward," it would
"become one of the most prominent new sports ventures
designed and created almost solely by television and cable
companies." Hendricks, who said that the WUSA "would try to
present a 'festival atmosphere' at its games by focusing on
more intimate venues": "This is not a made-for-television
league" (WALL STREET JOURNAL, 2/16). In Atlanta, Wendy
Parker reports that each franchise would have "anticipated
operating costs of around" $1.2M per year (ATLANTA
CONSTITUTION, 2/16). Hendricks said the league would need
an initial average attendance of 6,500 per game to break
even (SAN JOSE MERCURY NEWS, 2/16).
CROWDED HOUSE? USA TODAY's Peter Brewington writes that
women's soccer "took a giant step," but there are "hurdles"
as the WUSA "enters a crowded sports landscape."
Brewington: "Can the league find 10,000-to-20,000-seat
stadiums to accommodate its sport?" Other hurdles include a
"missing" TV contract, though Hendricks said that "talks are
proceeding" with NBC, ABC/ESPN, CBS, Turner and Fox.
Hendricks: "We want a (significant) licensing fee paid to
the league." Brewington: "While the WUSA proposal is
strong, it might not be the only [women's league]. The MLS
has introduced a business plan that includes the option of a
partnership between MLS and a women's league" (USA TODAY,
2/16). Bob Igiel, President of Young & Rubicam's Media
Edge, on a potential TV deal: "There are a lot of sports on
the air already. But there's also a lot more air" (WALL
STREET JOURNAL, 2/16). While no cities have been awarded
franchises yet, in Baltimore, Lowell Sunderland writes that
Atlanta is "a shoo-in" because of the "backing" by Cox and
Time Warner. Hendricks said that the DC/Baltimore market is
"under consideration," but the "lack of a suitable stadium
... is a problem" (Baltimore SUN, 2/16). Capital Area
Soccer League President Bill Wynn said Raleigh "is not in
the first tier. We're one of the 15. I was told we're
being looked at for the second go-round" (NEWS & OBSERVER,
2/16). In DC, Kathy Orton reports that the teams' locations
"will be decided" by October 31 (WASHINGTON POST, 2/16).
