The WNBA and the Women's National Basketball Players Association (WNBPA) are in a heated battle over a new collective bargaining agreement, with a deadline fast approaching. The two sides are divided on crucial matters, including revenue sharing, defining revenue, and accounting for expenses.
A Tale of Two Perspectives
Sources close to the negotiations reveal a stark contrast in financial projections. The WNBA predicts a $700 million loss over the agreement's duration, based on audited league data, if the WNPBA's proposal is accepted. This proposal offers players approximately 30% of gross revenue and a $10.5 million salary cap. Such losses would dwarf the combined deficits of the league's first 29 years.
However, the union disagrees, believing their revenue-sharing model will keep the league profitable. They dispute the league's loss figure, citing a discrepancy over expansion fees.
Expansion Fees: A Divisive Issue
The league is set to expand to 18 teams, with Portland and Toronto joining in 2026, and Cleveland, Detroit, and Philadelphia paying $250 million each to enter between 2028 and 2030. The league views expansion fees as a transaction with zero net revenue, as new teams pay the fee but gain a share of future league revenue, while existing teams get a portion of the fee but lose a share of future revenue.
The union, on the other hand, considers expansion fees as real money that benefits owners. This difference in perspective has led to a divide in the revenue-sharing model for the next deal, with sources telling ESPN that the two sides remain far apart.
The League's Proposal: Incentivizing Owners
The WNBA has proposed a system where players receive over 50% of net revenue, defined as revenue after expenses. Their last reported proposal included uncapped revenue sharing, maximum salaries rising to nearly $2 million, average salaries above $780,000, and minimum salaries over a quarter of a million in the first year alone. The salary cap would start at $5 million and grow with revenue.
The league aims to substantially increase salaries and other costs while incentivizing owners to continue investing in the business. With the WNBA's recent growth, there's an opportunity to transition from losses to sustained profitability.
The Union's Stand: Labor Deserves Priority
The WNBPA, led by president Nneka Ogwumike, proposes a system based on gross revenue, giving players about 30%. They believe players, who provide the labor and have no control over expenses, shouldn't be paid last. A document obtained by ESPN reveals the WNBPA's proposed compensation system, with a $12.5 million salary cap in 2026, an average salary of $1 million, and a maximum salary of $2.5 million, 20% of the proposed cap.
More recently, the union has proposed a lower salary cap of around $10.5 million. The WNBPA remains focused on securing a transformative agreement that ensures players receive a meaningful share of the revenue they generate.
A Potential Strike Looms
With negotiations seemingly in their infancy, despite opting out of the current CBA over a year ago, the players have authorized the union's executive committee to vote on a strike if necessary. Nneka Ogwumike emphasized that a strike is a last resort, a tool to ensure the players get a fair deal that represents their value.
The clock is ticking, and the outcome of these negotiations will shape the future of women's basketball in the WNBA.
