Denver Summit FC arranges a $40M private placement in historic first for women’s sports

The GIST: On Monday, Mesirow Capital Markets — an independent, employee-owned financial services firm — arranged a $40M private placement (or private bond financing plan) for Denver Summit FC, the Denver-based NWSL expansion club set to break attendance records at its home opener this weekend.

• Though common in major men’s sports, this is one of the first times a pro women’s sports team has accessed private bond financing, signaling a new era for financing in the space. With innovative approaches to accessing capital, the NWSL could scale like teams in men’s sports have through similar financial tools. A whole new world.

The context: When Rob Cohen pitched a bid for Denver Summit FC, he promised a $110M expansion fee and millions more in infrastructure investment, including a purpose-built 14.5K-seater stadium in Denver. Instead of paying for the infrastructure with personal funds, private placement provides institutional investors with reliable credit support.

• But how? The $40M is backed by the predictable revenue secured in the practice facility’s naming rights deal with healthcare system CommonSpirit Health. This means that in its early stages of development, the club and its investors are able to count on revenue and access millions in credit, letting them build world-class infrastructure sooner.

The precedent: As mentioned, this is basically unheard of in women's sports. But this approach reflects an attitude previously reserved for men’s sports teams: That investors can bank on them becoming profitable, with Denver already making quite the case.

• Revenue-backed financing plans helped MLS’ Nashville SC and Columbus Crew build new stadiums, with each team borrowing $225M and $45.5M respectively. Overall, assuming men’s sports would be profitable has allowed the Big Four leagues to flourish, as they benefited from $33B in public spending on infrastructure from 1970 to 2020.

• Securing such infrastructure spending across women’s sports has been challenging, but that’s changing. Around $1B has been committed to women’s sports facilities in a three-year span, and experts predict about 70% of NWSL and WNBA teams will have dedicated stadiums in a decade. And if the trend catches on, private placement could speed up this process even more.

The takeaway: We’ve discussed how the NWSL’s approach to private equity investment would allow the league to scale rapidly and attract not just institutional investment, but also more sponsorship. The league has created an environment that makes this Denver Summit FC deal possible, and the fan fervor around the team qualms concerns about ROI or market buy-in.

• Private placement in the NWSL proves women’s sports isn’t a gamble — it’s a stable investment opportunity for individuals, companies, and brands. That’s something CommonSpirit Health took note of by making all of this possible — and with so many healthcare brands sponsoring NWSL facilities, they’re undoubtedly getting major value out of the deal too. Everybody wins.