The Economics of Women's Sports

Why women's sports have historically earned far less than men's, how that is changing with rising audiences and investment, and what drives the pay gap.

Women’s sports have long received far less money, media coverage and sponsorship than men’s. In recent years, that has begun to change quickly.

The historical gap

Female athletes have typically earned much less than male athletes. Reasons include:

Less media coverage, which reduces audiences and commercial value.
Lower historical investment in leagues, facilities and marketing.
A cycle: low coverage leads to low revenue, which leads to low pay and investment, which keeps coverage low.
Discrimination and past bans; for example, the English Football Association banned women’s football from its members’ grounds from 1921 to 1971.

Signs of change

Record audiences: the 2023 FIFA Women’s World Cup drew large global television audiences and strong ticket sales.
Equal prize money: tennis Grand Slams offer equal prize money, with Wimbledon doing so since 2007.
Pay equity agreements: in 2022, U.S. Soccer agreed to equal pay for its men’s and women’s national teams.
Women’s Premier League: India’s cricket board launched the Women’s Premier League in 2023. Its media rights and team sales raised large sums. In 2022, the BCCI announced equal match fees for men’s and women’s international players.
Growing U.S. basketball and college audiences, with record viewing in women’s college basketball in 2023 and 2024.

The economics of the gap

Economists note that pay differences partly reflect differences in revenue generated, but that revenue itself has been shaped by decades of lower investment and coverage. As investment and coverage increase, revenue has often grown quickly, suggesting women’s sports were undervalued.

The Women's Premier League auction

When India's Women's Premier League launched in 2023, franchise sales and media rights brought in thousands of crore rupees. Top players received contracts far larger than they had previously earned. The strong investor interest suggested that women's cricket had significant commercial value that had been largely untapped.

Thinking the pay gap only reflects lower demand

Demand for women's sports has been shaped by decades of lower investment, coverage and marketing. When those change, audiences and revenues often grow substantially, showing that past demand was held back.

Key takeaways

Women's sports have historically received less pay, coverage and sponsorship.
A cycle of low coverage and low investment kept revenues down.
Record audiences, equal prize money and new leagues like India's WPL show rapid change.
Rising investment has revealed commercial value that was previously undervalued.