WNBA media rights deal could allow league to improve financing model

The GIST: The WNBA’s value is skyrocketing, and it’s projected to get up to $240M for its upcoming media rights deal, which will reportedly be negotiated alongside the NBA’s multibillion-dollar deal.

• If the WNBA does quadruple its media rights value, it could level up from its debt financing through the NBA to becoming a profitable, more independent league — one that may even pursue media rights deals separately. Buy their own diamonds.

The value: The WNBA has seen historic attendance and viewership in 2024 so far, which has prompted increased investment from sponsors like Coinbase. Right now, the WNBA earns about $60M per year from its TV deals, but is expected to notch somewhere between $180M and $240M in its forthcoming rights deal — coincidentally, the same amount as the NWSL’s new agreement.

The structure: Despite recent wins, the league has yet to turn a profit, and part of that is its complicated relationship with the NBA. The men’s basketball league did jumpstart the W and infused it with cash, but has also held it back financially. Historically, NBA partnerships have been WNBA ones by extension, yet brands rarely marketed to W crowds or sponsored athletes — until recently.

• This has created the unfair perception that the WNBA is a “drain” on the NBA’s coffers, although debt financing and equity is normal for newer businesses. However, the WNBA is 28 years in and has arguably outgrown its current structure where the NBA gets 40% of W revenue and investors get 20%, leaving 40% for the league and less than 10% for players.

The losses: In 2018, NBA commissioner Adam Silver said the WNBA operates at a $10M annual loss, and a 2024 Washington Post report ups this figure to $50M, partially due to the $25M earmarked for charter flights. Yet NBA investment, along with the league’s first-ever $75M capital raise, is quickly paying off: WNBA revenue was approximately $200M in 2023, up from $102M in 2019.

The future: Media rights are key to boosting the league’s profitability, which could unlock more player-forward services and amenable CBA terms if players choose to renegotiate this year. While debt financing is normal as businesses start out, the WNBA wields the power to become profitable and to help its players to reach the next level…sponsorships and sellouts are only the beginning.