Despite recent success with Caitlin Clark, WNBA expected to lose $50 million
MINNEAPOLIS — The ascension of basketball star Caitlin Clark has made the WNBA must-see TV.
Fans are tuning in and buying tickets at rates not seen in decades. Despite that success, financial struggles remain for the league.
Before we get to the bad news, let's start first by mentioning WNBA's recent accomplishments.
According to league officials, approximately 400,000 fans attended games in May. That's the most through the first month of a season in 26 years. More than half of all games that month were sellouts, an increase of 156% from the previous season.
Games airing on networks like ESPN and CBS are averaging 1.32 million viewers. That's almost three times higher than last year's game average.
Even merchandise sales are skyrocketing. Since the start of the season, league officials said the website WNBAstore.com has seen a 756% increase in sales compared to the same time last year.
Yet even with all of that good news, the Washington Post reported that the league is expected to lose $50 million this year. Since the WNBA was founded in 1996, it has averaged losing about $10 million. The league literally exists in the red.
So how can it capitalize on its young star players, like Caitlin Clark, who are bringing in more fans and money?
Two key points: Broadcasting rights and expansion. The NBA owns a majority stake in the WNBA. It is negotiating a rights deal for both leagues which is reported to reach $7 billion. According to the report, the NBA's current annual deal is $2.7 billion.
The Washington Post report states that the WNBA's current rights deal is valued at around $60 million, but it could nearly triple as the NBA continues to negotiate the newest deal.
Expansion is another way to infuse money quickly into the league. The WNBA currently has 12 teams. A new team will be added in 2025 and 2026 in California's Bay Area and Toronto, Canada, respectively. The report states that new teams pay a $50 million fee to secure rights to a team.
