The WNBA and its teams are expected to lose around $50 million this year, according to The Washington Post, despite the rise in viewership and popularity this season. The rookie class headlined by Caitlin Clark have shot the league’s TV ratings off the charts breaking records left and right.
NBA Ownership
The NBA owns around 60 percent of the WNBA. Additionally, the WNBA has lost an average of more than $10 million per year since its founding stated NBA Commissioner Adam Silver in 2018.
The WNBA revenue was between $180 million and $200 million last year. Compare this to the greater than $10 billion the NBA earned. The league is far behind their male counterparts.
Only around 40 percent of WNBA revenue is allocated to the league’s teams and players. The NBA gets around 40 percent and outside investors get the rest of the pie. This contributes to the lower salaries the players receive.
Media Broadcast Rights
The WNBA’s broadcast rights expire next season and are currently valued at $60 million per year. Media executives are predicting the league could triple its annual rights revenue to around $180 million and $200 million or more. However, the WNBA and NBA media rights are combined. The NBA will solicit bids from media companies that combine the value of the NBA and WNBA rights.
There are a lot of debates on whether the WNBA should split and have its own media rights deal. The proponents argue that the WNBA needs to be independent and have their own value and growth projections.
However, WNBA Commissioner Cathy Engelbert stated, “It’s a huge advantage to us to go to market with the NBA. Especially with streaming services who rely on a 12-month subscription model. 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.”
There are many benefits to the two leagues working together. They share resources and cross-promote in different ways like events such as the 2024 Stephen vs. Sabrina 3-Point Challenge.
Cash Flow
The WNBA recently announced the league would pay for charter flights estimated to cost $25 million per year. The league does dish out a $50 million expansion fee for new teams. The Bay Area WNBA team recently paid the fee to secure the rights and will begin play in 2025. Toronto was also awarded an expansion team and will begin play in 2026.
Whether independent or together with the NBA, the league should capitalize on the growing popularity and focus on its revenues.
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- Source: https://thegamehaus.com/sports/wnba-expected-to-lose-50-million-this-year/2024/06/15/
