The Women’s National Basketball Association (WNBA) is experiencing a surge in popularity, marked by record-breaking attendance and viewership at the start of its 2024 season. Fueled by the excitement surrounding new stars like Caitlin Clark and Angel Reese, the league is capturing headlines and fan attention like never before. However, beneath the surface of this growing enthusiasm lies a critical question for the long-term sustainability of the league: does the WNBA make money?
Despite the increased buzz and packed arenas, the WNBA’s financial performance remains a complex issue. For years, the league has operated at a loss, and recent reports indicate that this trend is continuing, even as viewership numbers climb. This article delves into the financial realities of the WNBA, exploring its current challenges and future prospects for profitability.
The Current Financial Landscape: Navigating Losses
According to statements from NBA Commissioner Adam Silver dating back to 2018, the WNBA has historically lost an average of over US$10 million per year since its inception. More recently, reports from The Washington Post suggest that these losses are expected to escalate significantly, potentially reaching around US$50 million in 2024. This represents a substantial five-fold increase compared to the historical average, highlighting the ongoing financial pressures the league faces.
This financial reality exists despite the positive momentum seen in the 2024 season. The league celebrated its highest-attended opening month in 26 years, with viewership figures soaring across major broadcasters like ABC, ESPN, and CBS. Caitlin Clark’s debut game alone drew 2.12 million viewers on ESPN2, marking the most-watched WNBA game in 23 years. Furthermore, the Indiana Fever, Clark’s team, surpassed their entire 2023 home attendance in just five games, demonstrating the tangible impact of star power on fan engagement.
The Path to Profitability: Media Rights and Expansion
The key to answering “does the WNBA make money?” in the affirmative in the future hinges on several factors, with media rights deals playing a pivotal role. The league’s current broadcast contracts are reportedly valued at up to US$60 million per season. However, with the current deals expiring in 2025, there is significant optimism that the WNBA can leverage its growing popularity to secure a much more lucrative agreement.
Commissioner Cathy Engelbert has expressed confidence in at least doubling the value of the next domestic broadcast rights deal. Industry analysts, as reported by The Washington Post, suggest the WNBA could potentially triple its annual rights revenue, reaching between US$180 million and US$200 million starting in 2025. This substantial increase in revenue would be transformative for the league’s financial health and its ability to move towards profitability.
Expansion also presents another avenue for revenue growth. The WNBA is set to welcome its 14th franchise in Toronto in 2026, marking its first team outside the United States. Moreover, Commissioner Engelbert has stated her ambition to expand to 16 teams by 2028. The Golden State Valkyries, joining in 2025, are reportedly paying a US$50 million expansion fee, setting a new benchmark and indicating the increasing value of WNBA franchises.
The NBA’s Role and Integrated Rights Deals
The NBA, which owns a significant portion of the WNBA and has invested heavily in its development, is actively involved in negotiating broadcast deals for both leagues. While there were discussions about unbundling WNBA media rights to maximize revenue, current indications are that the NBA favors integrated media rights deals.
NBA Commissioner Adam Silver believes that combining rights deals for both leagues remains the most beneficial approach for the WNBA. Commissioner Engelbert also supports this strategy, highlighting the “huge advantage” of appealing to streaming services seeking year-round sports content. This integrated approach could provide the WNBA with greater exposure and potentially more favorable terms within a larger NBA rights package.
Conclusion: A League at a Crossroads
So, does the WNBA make money? Currently, the answer is no. The league is still operating at a loss, and those losses are projected to increase in the short term. However, the narrative is shifting. The surge in popularity, driven by exciting new talent and increased media attention, positions the WNBA favorably for its upcoming media rights negotiations.
The potential tripling of media rights revenue, coupled with expansion and the continued support of the NBA, offers a clear pathway towards financial sustainability and, ultimately, profitability for the WNBA. While the league is not yet in the black, the current trajectory suggests that the answer to “does the WNBA make money?” could very well be “yes” in the not-too-distant future.
