Ariel Investments, a Chicago-based firm that manages $13.8 billion, is starting a new fund to buy up holdings in women’s sports.
The Project Level fund will make one of its first investments in a National Women’s Soccer League’s expansion team in Denver, Ariel co-CEO Mellody Hobson said in a letter to clients Jan. 30. Hobson will be an alternate governor of the yet-to-be-named team, while Rob Cohen, CEO of IMA Financial Group, will be the controlling owner.
“We see a tremendous opportunity to bring our experience, relationships and insights to a nascent asset class to drive profits while directly benefiting women and society — a trifecta in our view,” Hobson said in a letter to clients Jan. 30.
Project Level is angling for a piece of the growing market for women’s sports, in which global revenue is estimated to have soared 300% during the last three years to $1.28 billion in 2024, she said. More than half of that was generated in the U.S., where investors from Walt Disney Co. CEO Bob Iger to Chicago Cubs co-owner Laura Ricketts have also been investing in teams.
Jason Wright, former president of the Washington Commanders, will serve as Project Level’s managing partner and head of investments.
The fund is also putting together a corporate board that includes Cynt Marshall, former CEO of the Dallas Mavericks, and Steve Mills, former president of the New York Knicks. An advisory board will include Formula One driver Lewis Hamilton, singer and actress Queen Latifah and fashion designer Stella McCartney.
The expansion soccer team in Denver was also announced Jan. 30 by the NWSL. The team’s ownership group has agreed to a $110 million expansion fee.
Hobson already has investments in the Chicago White Sox, the Denver Broncos and the Women’s National Basketball Association. John Rogers, Ariel’s founder and co-CEO, has a stake in the WNBA’s Chicago Sky.
Investor interest in women’s sports has been building. In July, Iger and his wife, Willow Bay, reached an agreement with Angel City Football Club in Los Angeles to become the team’s controlling owners. The deal valued the team at $250 million, according to the club.
In 2023, Ricketts led a group of investors to purchase the NWSL’s Chicago Stars FC, with a total purchase and investment price of $60 million.
