London City Lionesses' Transfer Investment Exceeds Premier League Men's Shirt Sponsorship Deals: What Is the Logic Behind It?

Two-time Ballon d'Or winner Putellas, two-time FIFA Best Women's Goalkeeper Award winner Earps, four-time UEFA Champions League winner Bronze, and Diani, who has made more than 100 appearances for France — London City Lionesses' summer recruitment list is filled with major names. But the question is: how has the club, owned by American businesswoman Michele Kang, been able to sign these star players while complying with Women's Super League (WSL) financial regulations?

Invest first, profit later

London City's strategy is clear: invest first, profit later. Korean-American businesswoman Kang acquired the club in 2023 and helped the team gain promotion to the WSL in 2025. Finishing sixth in their first top-flight season was a respectable result, but this summer they chose to make major moves. London City invested heavily in star players — although most arrived as free transfers — for two reasons: to qualify for the Champions League and to increase club revenue as quickly as possible.

Revenue must grow in order to afford the wages of this group of players. London City are betting that star players can attract larger sponsorship deals and new groups of fans, bringing revenue growth in the future. On Thursday, they announced a first-of-its-kind multi-year front-of-shirt sponsorship agreement with Nike. Although financial details were not disclosed, Kang said the deal's value exceeds the shirt sponsorships of some Premier League men's clubs and also surpasses the annual value of $4 million (around £2.9 million) from a recent front-of-shirt deal for an Atlanta expansion team in the National Women's Soccer League (NWSL), which was considered the largest shirt sponsorship in women's football.

The startup logic of women's football leagues

The idea of 'invest first, profit later' is not uncommon in women's football and reflects its startup-like nature. In a league where attendance growth has stalled, London City have chosen to take responsibility for injecting energy into the WSL, regardless of the outcome. Christina Philippou, associate professor of sports finance at the University of Portsmouth, told The Athletic: 'The revenue piece of the puzzle is definitely missing. But Kang is smart enough not to do the crazy-spending-for-fun approach.' As Kang has shown in the past, if she wants to accomplish something, she will pursue it.

The WSL introduced financial rules a year ago, but the key point is that any violations of the salary cost regulations cannot be enforced until the upcoming season.

How do the salary limit rules work?

The WSL's Permitted Squad Salary Requirement (PSS) limits club spending on players to a certain proportion of revenue, while allowing owners to increase spending through equity investment. Specifically, the PSS limits player salary spending to 80% of a club's annual revenue, plus a 'relevant cash injection' allowance capped at the higher of 25% of annual revenue or £4 million ($5.4 million). Philippou explained: 'This allows owners to put some money in to move the team forward, but without letting things become completely uncontrolled.' Relevant cash injections from owners do not necessarily have to be in the form of equity; 'soft loans' — interest-free loans that rank last in repayment priority if the club has debts — are also counted.