The WNBA makes $60 million in income each year, but it also incurs expenses in excess of $70 million. As a result, the WNBA does not generate revenue. Since its start in 1996, it has averaged a $10 million net loss (sales minus costs).
The WNBA's financial difficulties are due to the fact that no television contract has been signed yet. The last contract expired after the 2011 season and there have been no negotiations since then. The WNBA needs a deal that will allow it to at least break even or make a small profit if it wants to continue operating.
The league has tried to expand its audience by adding more games but this strategy has not worked out so far. Ratings for WNBA games have always been low, probably because few people are interested in basketball outside of the United States.
The main reason why the WNBA is able to survive despite losing money every year is because of the high salaries of its players. All 10 teams in the WNBA are owned by women who pay anywhere from $0 to $2.5 million per year for their franchises.
The highest paid player in the WNBA is San Antonio Spurs' guard Imani "ImaHaven" Temple, who made $1.5 million in 2015.
Of course, revenues are not the same as profits. All of this leaves the WNBA with a financial shortfall. According to NBA commissioner Adam Silver, the WNBA has lost an average of $10 million each year since its inception, which the NBA subsidizes out of the kindness of its politically correct heart.
The league claims it is profitable, but it's not telling us how they calculate that. We know that ESPN pays $20 million per year for the rights to broadcast WNBA games and that Turner Sports charges $2 million for those same rights. So, in theory, at least half of what the NBA says it is giving up would be profit. The other half would be loss leader sales from teams to fund their basketball programs.
In conclusion, yes, the WNBA is losing money.
The WNBA is presently anticipated to earn $60 million in income, with $12.3 million of that money allocated to its players. This makes the league marginally profitable.
When the WNBA began in 1997, many people did not think it would last more than one season. Instead, it has become one of the most successful sports leagues in America. The main reason for this success is the high level of talent that plays in the league. Many famous athletes have played in the WNBA including Angel McCoughtry, Tamika Catchings, and Sheryl Swoopes.
The WNBA has 12 teams located in major cities such as Chicago, Dallas, Detroit, Indiana, Los Angeles, New York, North Carolina, Oklahoma City, Philadelphia, San Antonio, and Seattle. Each team plays between 30 and 35 games during a regular season that lasts around six months. The remaining games are played in various stages of the playoffs until there is only one champion left!
Since the WNBA started, many people have asked if it is profitable. The answer is yes, but not by much. It is estimated that the WNBA will make a small profit, or even lose money, which means that it is probably not going to be around in five years time.
In the 2017-18 NBA season, players received around half of the league's income. WNBA players, on the other hand, received less than a fourth of the league's earnings. The remaining quarter goes to the owners of the teams that play in the league.
The disparity between men's and women's basketball has long been a topic of conversation among fans, journalists, and officials. In addition to having its own league, the WNBA operates under the same financial guidelines as the NBA -- which means it receives about $250 million per year.
This amount is split four ways between the eight team owners. Each owner pays a percentage of their team's salary cap into a shared pool, which is then distributed back to the players based on how much they are paid. For example, if one player makes $100,000 while another makes $125,000, the player making $100,000 would receive about 2% of the distribution pool while the player making $125,000 would receive around 1%.
There are several factors that can affect how much players receive including but not limited to number of games played, number of minutes played, and playoff appearances.
For example, if a player does not make the playoffs they do not receive any additional paychecks from the league.
Copyright © 2020 - 2023 Sportsmanist Inc.
