Alright, guys, this may come as a shock to many, but I’m tired of calling y’all stupid. WNBA players put on some t-shirts with a clear and concise message about normal workplace behavior, and people lost their entire minds. Asking for a raise is as American as not paying frontline employees a living wage (Yes, I absolutely get the irony in this statement.) I really want better for you people. I see that insulting is not the way to enlightenment, so I’m going to go the educational route. It seems the main problem is misinformation. I’m going to rectify that right now. Welcome to WNBA Economics: 101.
The first class is going to be a vocabulary lesson:
Profit: a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something
Revenue: the total amount of money a business or entity earns from its activities before any expenses are deducted
Hey man, these two words are kicking y’all’s asses in this entire conversation. The WNBA players are asking for a larger share of the REVENUE generated by the league, but people are determined to bring up negative PROFIT margins as to why they shouldn’t get what they’re asking for. Saying they don’t deserve a pay increase is asinine. The league generated $710 million in revenue in 2024. As it stands now, the players are only entitled to 9.3% of said revenue. By comparison, their NBA counterparts share a 50/50 revenue split from all basketball-related income. Anyone who is opposed to the ladies getting a better deal, I’m willing to hear you out as to why you feel that way. Once you start talking about profit, I’m going to ignore you, though. Increasing profits is not the player’s responsibility. They don’t run the business or make any decisions that would have any bearing on that. Think about your own life for a second. They don’t drag you out of the stockroom at Safeway and into strategy meetings so you can analyze the P&L statement and discuss quarterly projections. But when you notice those food trucks backing up more often, and you’ve gone in and out of that meat freezer a thousand times, you’re going to start thinking, “Say, they’re slangin a lot of produce around here and I’m doing a whole lot more work. They should pay me more.” Well, the W players are seeing merch fly off the shelves, arenas filling up, and ratings skyrocket. So naturally, the price goin up on the brick. Surely you can connect those dots.
The next class is going to be a history lesson. Since people are so hung up on profit, let’s talk about it. The WNBA is currently operating at a deficit. The league lost $50 million last year. Between having to cover player salaries, benefits, marketing expenses, and team travel (charter program was introduced this year), you can run up a pretty decent tab. The NBA subsidizes the W and helps cover the losses. Before you start screaming “CHARITY CASE!!!”, let me let you in on a little secret. It took the NBA 40 years to turn a profit. That’s right, the NBA was formed 11 years before my mother was born, and was ducking bookies until I was 3. You know how y’all keep saying, “They have everything on video except Wilt’s 100-point game.” Well, buddy, they couldn’t afford to record it. Guess what the players did during that time? They negotiated for higher salaries, better benefits, medical care, pensions, and improved travel accommodations. Sounds familiar, right? Remember this when you’re screaming into the void about WNBA players not deserving higher pay because “the league doesn’t make any money”. And another thing, a majority of the teams were still taking Ls for years. As recently as 2017, over half of the teams in the league ended the season in the red before revenue sharing kicked in. And 9 teams still reported losses after that. Only two teams reported losses last season. One of the biggest reasons the NBA is able to avoid financial pitfalls is because of extremely lucrative media rights deals. In the upcoming season, they will be entering year one of an 11-year deal valued at $76 billion, and that’s just one revenue stream, and the players split that with the league right down the middle. Now, if you’ve been paying attention, you can probably figure out what comes next. Next season, the WNBA will enter into a historic media rights deal that will garner an additional $200 million per year. So that $50 million deficit people love to harp on becomes a $150 million surplus. At this point, you really only have two options: you can change your tune and support the ladies in demanding higher pay, or you can admit your objection to them getting their just due has nothing to do with your ignorant and misinformed depiction of their business model and is rooted in racism, sexism, and homophobia. Your choice.
The final, and most important lesson in economics: If you build it, they will come. No business can grow without investment. Examining the league’s landscape, the owners who invest heavily in their franchises have been reaping the benefits. Joe Lacob (Golden State Warriors owner) acquired the Golden State Valkyrie for $50 million in 2023. Halfway through their first season, the team is valued at $500 million, the highest in the league. If you don’t know anything about Lacob’s spending habits, he goes by the age-old mantra, “Squeeze first. Ask questions last.” And if you look at the top half of the league’s valuation list, the other owners follow suit. It’s no coincidence that these teams have produced four championships since 2020. And with the league at an inflection point, they are rapidly expanding. Two new teams will begin play next season, with three more being added by 2030. That $50 million expansion price tag we saw two years ago, however, has increased to $250 million, with the average valuation of a WNBA franchise now at $269 million. Can’t keep expecting these ladies to be happy with scraps while everyone around them is eating wagyu steak. And the league wouldn’t be at this inflection point without intentionality. It’s what has given the ladies the leverage to stand firm at the negotiation table. As the league continues to garner more resources and support, heightened investment will only make the W better. Higher salaries would keep players stateside during the offseason, which gives them more time for rest, recovery, and training. Giving the ladies the opportunity to focus solely on prepping for the next WNBA season would make the on-court product even greater. With the growth we’ve been seeing over the last few years, the smart thing to do would be to push all the chips to the middle of the table.
If you’ve stuck around to this point, you’re undoubtedly better for it. This is a very simple concept to have caused such an uproar. If you were one of those people making bad faith arguments and embarrassing your family online, talking about this, hopefully, you now have the tools to positively contribute to the conversation. If you read this and still believe WNBA players are not entitled to higher salaries, then I’m sure Hulk Hogan’s death rocked you to your core.