Flossi Celebrates the New York Liberty Championship

MYTH: The WNBA doesn't make any money.

FACT: The WNBA's revenue grew 233% in 2023 from $60M in 2022 to $200M. Note - The NBA only became "profitable" in the 90's after operating for 20-30 years.
The Women's National Basketball Association (WNBA) was founded on April 24, 1996, as the women's counterpart to the National Basketball Association (NBA), with league play beginning in 1997. Here's an overview of its history and financial situation:

History:

- Inception: The WNBA was created to provide a professional league for women's basketball, which saw a surge in popularity following the success of the U.S. women's basketball team in international competitions.

Expansion and Challenges: The league expanded rapidly, adding teams in the early 2000s. However, it faced various challenges, including team relocations and foldings due to financial difficulties. Notably, the Houston Comets, a dominant team in the league's early years, folded due to financial issues, marking a significant moment in the league's history.

- Growth and Recognition: Over the years, the WNBA has seen moments of significant growth, particularly with the rise of high-profile players and increased media attention. The league has also been at the forefront of social activism, contributing to its cultural impact.

Financial Situation:

Revenue Growth: Recent data indicates that the WNBA has experienced substantial revenue growth. For instance, from 2019 to 2023, revenue doubled before further increasing dramatically, with reports of revenue reaching up to $200 million in 2023. This growth is attributed to several factors, including new media deals, increased viewership, and the impact of new stars like Caitlin Clark.

- Profitability: Despite the revenue growth, the WNBA has never turned an annual profit in its history, with estimates suggesting losses of around $10 million per year historically, although there was mention of an expected $50 million loss for a recent season due to new expenses like charter flights. This situation has led to debates over player salaries and league sustainability.

- Investments and Financial Structure: The league has seen significant investments, with a notable capital raise that introduced new investors alongside existing NBA and WNBA ownership, aiming to bolster its financial stability. This includes a deal where investors gained a priority return on their investment, indicating a strategic move towards possibly reducing annual losses or aiming for profitability in the long term.

Player Salaries and CBA: The WNBA's financial model significantly affects player salaries, with rookies earning relatively modest base salaries. However, salary increases are expected or even possible with the upcoming negotiation of a new collective bargaining agreement (CBA) and more lucrative media deals on the horizon.