WNBA is owned by the NBA as the NBA Board of Governors formed the WNBA in 1996 as a womens professional basketball league.
While the two leagues are separate entities, the NBA plays a significant role in the management and financial backing of the Women's National Basketball Association (WNBA).
Up until the end of 2002, the NBA owned both the teams in the NBA and the teams in the WNBA. But things changed because of a big tech bubble burst called the dot-com bubble.
To deal with this, the NBA decided to sell the WNBA franchises. They did this by either transferring ownership to the existing NBA teams in the same cities or by selling them to other outside groups.
While some WNBA franchises remain under the ownership of their NBA counterparts, most of them are independently owned by other entities.
Is The WNBA Subsidized By The NBA?
Yes, the WNBA is subsidized by the NBA. The NBA provides the WNBA with an annual endowment of over $15 million.
As of 2023, the NBA owns 50% of the WNBA, and the 12 WNBA teams own the other 50%.
The NBA has been a strong supporter of women's basketball and recognized the need for a professional league to provide opportunities for female players.
As such, when the WNBA was established in 1996, it received economic backing from the NBA. The subsidies provided by the NBA help cover various aspects of operating costs for the WNBA teams.
This includes facilities expenses, travel expenditures, marketing and promotion efforts, as well as administrative costs.
The partnership between these two leagues not only helps grow women's basketball but also showcases gender equality in sports and provides role models for aspiring young girls who are passionate about playing professional basketball.
In February 2022, the WNBA raised money for the first time, a staggering $75 million from its investors which also include NBA and WNBA franchises.
The league received money from Nike, Laurene Powell Jobs, Condoleezza Rice, and Pau Gasol in an effort to revamp its business approach. This move comes as players are advocating for growth, increased pay, and improved perks.
The NBA continues to provide financial support to its sister league, the WNBA, primarily due to the lesser revenue and profitability.
The financial resources generated by the WNBA are not sufficient enough for sustaining its operations independently, necessitating additional assistance from the NBA to cover various expenditures.
Average Salary WNBA Per Year
The average annual salary in the WNBA is $120,000 in 2022. It is an increase of $45,000 from 2019 when the average wage was only $75,000.
| 2022 | $120,000 |
| 2021 | $102,000 |
| 2020 | $90,000 |
| 2019 | $75,000 |
| 2018 | $69,000 |
Similarly, for the 2022-23 campaign, the lowest salary allowed is $62,285, while the highest-paid stars in the league are making up to $234,936, according to Spotrac.
Back in 2010, the maximum amount a team could spend on player salaries was initially set at $827,000, but it was later reduced to $775,000. Fast forward to 2013, and the cap had increased to $900,000, marking the sixth year of this agreement.
In 2010, players with three or more years of experience had to be paid a minimum of $51,000, while those who had been in the league for six or more years could make a maximum of $101,500.
This was a significant milestone, as it was the first time in the league's history that players could earn over $100,000. Rookie players, on the other hand, were entitled to a minimum salary of $35,190.
Starting from 2020, the new CBA (Collective Bargaining Agreement) brought some big changes to WNBA player salaries.
The minimum wage for a player with less than three years of experience was raised to $57,000. Meanwhile players with three or more years of experience, the minimum went up to $68,000.
For most players, the maximum salary they could earn in 2020 was set at $185,000. However, players who met certain requirements for league service had an even higher maximum of $215,000. This was a significant boost compared to previous years.
Moreover, in 2020, the WNBA and the players' union made an agreement lasting for eight years until 2027. This agreement ensures that the best players in the league will eventually make more than $500,000 every year, and on average, all players will earn around $130,000 per year.
Although the amount is increasing each year, it is still far away from the NBA payscale. The average NBA player makes over $7 million per year, which is over 70 times the average WNBA salary.
The difference in pay between WNBA and NBA players is mainly because the WNBA generates much less money. In 2022, the WNBA made only $60 million in revenue, while the NBA made a whopping $10 billion.
Dallas Wings point guard Arike Ogunbowale is the highest-paid WNBA player with an annual income of $234,936, which is less than the minimum salary for NBA players in 2023.
Top Paid WNBA player list 2023
- Arike Ogunbowale - $234,936
- Jewell Loyd - $234,936
- Diana Taurasi - $234,936
- DeWanna Bonner - $234,350
- Elena Delle Donne - $234,350
- Jonquel Jones - $211,150
- Kelsey Mitchell - $206,000
- Kahleah Copper - $205,000
Has The WNBA Ever Made A Profit?
The WNBA has yet to generate a profit in its 27-year history. WNBA loses $10 million a year according to NBA commissioner Adam Silver.
Moreover, in 2021, the WNBA faced a significant financial setback, with a staggering loss of $12 million, marking the largest financial loss in the league's history.
In the mid-2000s, the NBA had to invest over $10 million annually to ensure the financial stability of the WNBA. By 2007, it was estimated that each team was facing yearly losses of $1.5 million to $2 million.
Because not enough people have been watching the games, the WNBA has not made much money in previous years. The league stated that it lost about $400 million by the end of the 2010 season.
However, it is worth noting that in recent years there have been some promising developments for the league's finances.
Increased exposure through media coverage and endorsement deals with major brands have helped boost sponsorship revenue for teams within the WNBA. The league is slowly making strides and things are heading in the right direction.
In 2013, the WNBA made a huge broadcasting agreement with ESPN. They signed a contract for six years, which was worth a total of $72 million, equivalent to $12 million per year.
On the other hand, the league has experienced a rise in the number of sponsorships. In August 2011, the WNBA revealed a league-wide partnership with Boost Mobile.
Similarly, in April 2019, the WNBA and AT&T joined forces in a multiyear marquee deal. AT&T became a major partner for the league, not in terms of clothing, but they got their logo placed on the front of the jerseys worn by all 12 clubs.
Furthermore, WNBA also makes remarkable earnings from its merchandise sales.
In 2021, the WNBA reported that merchandise sales on WNBAStore.com saw record growth, with a 50% increase over the previous year. This suggests that the league generated around $20 million in merchandise sales in 2021.
