Despite the significant rewards the WNBA appears to have reaped in 2024, it seems the financial gains might not have been sufficient to offset substantial losses.
According to Margaret Fleming of Front Office Sports, the WNBA and its 12 teams are projected to lose $50 million, though not solely due to mismanagement.
The report indicates that the WNBA’s relationship with the NBA is a major factor, as the NBA takes around 40 percent of the WNBA’s revenue, while outside investors receive an additional 20 percent. Consequently, players end up with less than 10 percent of the total revenue.
“The NBA’s massive coffers and influence have helped the WNBA stay afloat and grow over the years, especially now as the two leagues prepare for a new media-rights agreement. It’s beneficial for the WNBA to stick with the NBA for these negotiations,” commissioner Cathy Engelbert told the Post. “If we’re only there for 4½ months … how attractive is that? But we and the NBA are maybe the only sports properties that can give 330 days of live programming—almost the entire year. That’s hugely valuable to a subscription platform,” she said. The two leagues also share marketing efforts and several team owners. (The Post’s deep dive into how the WNBA works found that “Engelbert reports to Silver” ultimately.),” Fleming wrote.
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“But while the WNBA is sustained by the NBA, it’s also in some ways drained by it. The NBA receives about 40% of WNBA revenue, and outside investors—the WNBA raised $75 million from Nike, NBA owners, the NBA itself, and others in 2022—get roughly 20%, leaving the teams and players of the WNBA with about 40% of its own revenue,” the Post reported. “And unlike the NBA, in which players evenly split revenue with team owners after the league office takes its portion, players in the WNBA see less than 10% of total revenue.”
Clearly, the relationships that the WNBA has built over the years are proving to be a double-edged sword.
While these investors have been crucial for the league’s survival and growth, the financial arrangement might prevent the WNBA from fully reaping the benefits of its successes for years to come.
