Professional soccer club, the Houston Dash of National Women's Soccer League (NWSL), on the market; Preston Johnston and Towers (PJT) handling sale negotiations

Professional soccer club, the Houston Dash of National Women's Soccer League (NWSL), on the market; Preston Johnston and Towers (PJT) handling sale negotiations

The Houston Dash, a team in the National Women's Soccer League (NWSL), has enlisted the services of investment bank PJT Partners to assess potential investment options. This move comes as owner Ted Segal, who also owns the Houston Dynamo and the Houston Astros, believes it's the right time to explore additional resources for the Dash.

Ted Segal, the chair of the NWSL's expansion committee, acquired a majority stake in the Dynamo, Dash, and operating rights to Shell Energy Stadium at a valuation of approximately $400 million in June 2021. However, the team has struggled on the field, with only one playoff appearance over its history and finishing 14th in the league last season. The team's attendance also ranked last in the league, with an average of 6,194 fans per game.

The Dash parted ways with its coach and general manager during the 2022 season, and this month, the team hired Fabrice Gautrat as coach, their eighth different boss since 2021. The team's estimated revenue for 2024 is $7.6 million.

PJT Partners, with extensive experience in the sports arena, having advised on the purchase of the Baltimore Orioles and served as a liaison between the NFL and private equity firms, will now guide the Dash in exploring strategic opportunities. This could potentially include a full or partial sale of the team, which could impact the Dash's ownership and long-term stability in Houston.

The value of the NWSL has exploded since then, with teams like Angel City FC and San Diego Wave making their debuts in 2022 after paying expansion fees of roughly $2 million. The expansion fee for the 16th slot in the NWSL was expected to be $100 million, but Denver was awarded the bid for a $110 million fee. The average NWSL team value is currently $104 million, a 57% increase from the prior year.

Last year, owners of NWSL clubs cashed in through sales processes at valuations of $250 million and $120 million. The Seattle Reign was bought by the Seattle Sounders and investment firm Carlyle last year for a valuation of $58 million. Notably, the Sportico valuation placed the Houston Dash at $74 million, the 10th highest in the NWSL.

It's important to note that the investment process will not impact team operations or soccer-related decisions. Additionally, the MLS team and Shell Energy Stadium are not part of the discussions with potential investors. PJT Partners also represented creditors in the Diamond Sports Group bankruptcy proceedings.

The review of "strategic alternatives" is expected to last several months. As the process unfolds, fans and stakeholders can expect updates on the Dash's future ownership and potential changes that may impact the team's long-term presence in Houston.