A lack of corporate sponsorships and lackluster ratings were cited as the key reasons the Women’s United Soccer Association decided last week to suspend operations.
Hyundai Motor America and Johnson & Johnson hold the two top level sponsorship positions with Coca-Cola, Gillette, May Tag, McDonalds, Aflac and others holding league sponsorships at about $500,000 each.
John Hendricks, the founder and chairman of the WUSA, said in a conference call following the announcement that corporate sponsors were the key missing ingredient. The league had undertaken an aggressive sell beginning 18 months ago to bring in category exclusive sponsors with equity potential that would invest $2.5 million a year. The hope was to attract eight such sponsors by now to help bridge a $20 million annual deficit, however only Hyundai Motor America and Johnson & Johnson had committed.
“Quite frankly, we can’t make it without other charter sponsors,” he said.
The leagues two largest areas of revenue were tickets and corporate sponsors, Dan Courtemanche, a WUSA spokesperson said
Courtemanche said that sponsors had been notified of the suspension.
“All the sponsors have been contacted and made aware that WUSA was being suspended,” he said. “Now we’re following up with them to let them know that the option is available to them to continue sponsoring WUSA if it does return in, hopefully, the near future.”
About 170 employees, the majority of staff, working at the league office and associated with the teams were terminated last Friday. About 160 players are winding down contracts and will receive benefits through next year, Courtemanche said.
He said hopes are high that the league will be revived by an effort waged by the players’ association and their attorneys.
“There is a glimmer of hope that during the next few months that the phone will ring,” Hendricks said during the call.
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