The WNBA – Building a Sustainable Sports Business
Founded in 1996, the Women's National Basketball Association (WNBA) was launched in 1997 with support from the National Basketball Association (NBA). It was the first women's professional basketball league to receive significant financial and promotional backing from a major men's league. Initially perceived as a marketing extension of the NBA, the WNBA has grown into an organisation at a crossroads. While it is currently experiencing unprecedented attention, increased investment, and growing cultural relevance, it still faces challenges in monetisation, visibility, and long-term sustainability, especially as it navigates critical collective bargaining agreement (CBA) negotiations with its players for the 2026 season.
History
The WNBA began with eight teams and has expanded to thirteen teams in the 2025 season, with plans to grow to fifteen teams by the 2026 season. Its current expansion plans aim to reach eighteen teams by 2030 under the leadership of Commissioner Cathy Engelbert. Over the years, the number of teams has fluctuated due to expansion and contraction, peaking at sixteen teams in the early 2000s. Unlike other women’s leagues, the WNBA has thrived for over two decades by aligning closely with the NBA, leveraging its infrastructure, media power, and financial support.
Team ownership in the WNBA is diverse, with both independent owners and owners of NBA teams. In some cities, the ownership of NBA and WNBA teams differs. There is also a notable discrepancy in arena capacities among the teams, ranging from a low of 3,200 fans for the Atlanta team to over 19,000 fans for teams in cities like New York and Minnesota. Additionally, four of the WNBA teams that play in NBA cities do so in arenas with capacities of 10,000 or fewer fans, with the Connecticut Sun also in an arena with fewer than 10,000 fans.
Challenges
Revenue and Profitability
The WNBA has historically struggled to generate significant revenue compared to men's leagues. For many years, it operated at a loss, but in recent years, it has started seeing growth in sponsorships and media deals. Reports indicate that the league has incurred annual losses in the range of $10 million, and this figure was projected to increase to between $40 and $50 million for the 2024 season.
Revenues for the WNBA are estimated to have increased from $100 million to $200 million in recent years. Continued growth is expected due to new broadcasting deals, significant increases in attendance, and additional sales from merchandise and arena concessions starting in 2024. In 2024, the highest revenue teams is the Indaian Fever at an estimated $32 million and the lowest revenue team is the Atlanta Dream at $11 million. The aveage revenue is aprroximately $19 million.5
Additional income will also be generated from expansion fees. The Golden State Valkaries began play in 2025 with a $50 million expansion fee. Teams in Toronto and Portland are scheduled to commence play in 2026, with expansion fees of $50 million and $75 million, respectively. The three new teams announced in June 2025 will each have an expansion fee of $250 million. These teams will be located in Cleveland (2028), Detroit (2029), and Philadelphia (2030). Other expansion bids came from the cities of St. Louis, Kansas City, Austin, Nashville, Houston, Miami, Denver, and Charlotte.6
Ownership
The ownership structure of the WNBA is intriguing. NBA team owners control 42% of the league, another 42% is held by WNBA owners, and 16% is owned by an investment group. This investment group contributed $75 million in 2022 and includes notable investors such as Nike, Michael Dell, Linda Henry, Dee Haslam, Condoleezza Rice, Micky Arison, and Laurene Powell Jobs, among others like Ted Leonsis, Herb Simon, and Joe Tsai. Leonsis (owner of the Washington Mystics and Wizards), Simon (owner of the Indiana Fever and Pacers), and Tsai (owner of the New York Liberty and Nets) each have three separate investments in the WNBA due to their roles as NBA owners, WNBA owners, and members of the investment group. The Phoneix Mercury and Minnesota Lynx are also owned by NBA owners in those cities.1,3
The new ownership in Golden State, Cleveland, Detroit, and Philadelphia are all NBA owners in the same cities. This will mean that more NBA owners will have dual investments in the WNBA. The situation in Toronto is unique, as the primary owner of Kilmer Sports Ventures, Larry Tanenbaum, also owns 25% of Maple Sports and Entertainment, the parent company of the NBA's Toronto Raptors. Also of note is the NBA's Los Angles Lakers have recently be sold to one of the owner of the Los Angeles Sparks and in Minnesota there is new ownership of the Minnesota Lynx and Timberwolves. Additionally, the Conneticut Sun are reported to be for sale and will likely be relocated when sold.
Expansion will not dilute the 42% ownership held by NBA owners, nor the 16% controlled by the 2022 investment consortium. However, the 42% owned by WNBA owners will be divided among 18 owners by 2030. According to Forbes WNBA teams are worth 180% more than in 2023. The valuations range from $400 million in New York to $190 million in Atlanta. There are some estimates that the new franchise in Golden State valuation in its first season is $500 million. The average valuation is $272 million which is 14.4x the average revenue which exceeds the valuation in all other major sports. The reasoning for this is they reflect more on the potential of the league given the beleive it is reaching a tipping point based on what is known as the Caitlin Clark Effect.
Media Coverage and Broadcasting
Media exposure for the WNBA has lagged behind that of men's leagues. Limited broadcasting slots and a lack of prime-time games have restricted its visibility. However, there is a positive change underway with recent broadcasting agreements with ESPN and Amazon Prime. In 2026, a new media deal sees the current media deal increase from approximately $60 million a year to approximately $200 million a year over 11 years with Disney (ABC and ESPN), NBC, and Amazon. It will also continue its Friday night double header on ION, which in the past has been reported to be worth $13 million a year. Terms of the new deal with ION to begin in 2026 have not been disclosed.2
In 2024, the network ratings of WNBA games averaged 394,000 viewers in games that did not feature Caitlin Clark, the 2024 rookie of the year. Games featuring Clark averaged 1.14 million viewers. Many of the Clark games, along with playoff games and the all-star game, saw ratings that the league had not seen since it started in 1997. Many of the Clark games outperformed the NBA games on the NBA network, and the league saw million-viewer games that it had not seen in years. The 2025 season is seeing similar viewership trends.
Pay Equity and Player Compensation
WNBA players have advocated for better salaries and working conditions. The 2020 Collective Bargaining Agreement (CBA) was a significant step forward, providing increased pay, maternity benefits, and upgraded travel accommodations. This agreement extends through 2027, but the WNBA Players Association (WNBPA) has opted to revisit the contract early and is currently renegotiating terms for the 2026 season. A major concern remains that players' salaries continue to be significantly lower than those of their NBA counterparts. In fact, during the term of the agreement, the players' revenue share decreased from 11.1% to 9.3% due to a surge in league revenues.4
Marketing and Brand Building
Building the individual brands of players, such as Caitlin Clark, A’ja Wilson, and Breanna Stewart, is crucial for increasing the league's popularity. Additionally, social justice activism has become a defining aspect of the WNBA's brand identity.
Caitlin Clark and the Caitlin Clark Effect
1. https://www.sportsbusinessjournal.com/Journal/Issues/2022/04/215/In-Depth/WNBA-owners/
3. https://frontofficesports.com/wnba-expansion-north-philadelphia-detroit-cleveland/
4. https://sherwood.news/business/wnba-mysterious-finances-salaries/
5. https://www.forbes.com/sites/brettknight/2025/06/06/the-wnbas-most-valuable-teams-2025/