The WNBA was founded as a female counterpart to the NBA in 1996, and the new league first tipped off in 1997. It started out with eight teams, and after going through a lot of upheavals including relocations, it currently has 12.
The WNBA signed a new collective bargaining agreement with the Women’ National Basketball Players Association in 2020 which included a 53% pay raise for players.
Before the new agreement, the average salary for a player was approximately $116,000; and now, the base salary is $130,000 with additional bonuses and incentives. This increase could mean even bigger subsidies from the NBA, if the WNBA does not find a way to become more profitable.
What is the NBA financial backing and subsidies for the WNBA?
The NBA provides the WNBA with an annual endowment of over $15 million. This financial support helps cover various operating costs for WNBA teams, including facilities, travel, marketing, and administration.
As of 2023, the NBA owns 50% of the WNBA, while the 12 WNBA teams collectively own the other 50%. This shared ownership underscores the NBA’s commitment to women’s basketball..
The WNBA’s lack of profitability
The WNBA generates less revenue compared to the NBA. The financial resources from ticket sales, merchandise, and broadcasting deals are not sufficient to sustain WNBA operations independently.
The NBA recognizes the need for a professional women’s league. By subsidizing the WNBA, the NBA champions gender equality in sports and provides role models for aspiring female players.
In February 2022, the WNBA raised an impressive $75 million from investors, including NBA and WNBA franchises. This infusion aims to revamp the league’s business approach, enhance growth, and generate new revenue streams.
