EXPERTS ADVISORY

The WNBA and the Women’s National Basketball Players Association are still at loggerheads over contract negotiations as the Oct. 31 deadline looms, with revenue sharing and pay the major sources of contention.

Ron Wade, assistant professor or sport management at the University of Michigan School of Kinesiology, discusses the role of historic gender and racial discrimination in the WNBA and women’s sport.

“Like most things in America, you don’t have to go back too far to find gender and race discrimination at the heart of why certain things may be the way they are,” he said. “When you look at the historical view of the WNBA it was often viewed as through the lens of, ‘Oh it’s a female league, it’s not going to be as popular as the men’s basketball, they don’t dunk, the money from sponsorship isn’t there, their attendance is lower so, of course, they should be treated with less pay, they weren’t given the same attention and resources as the men’s league.”

Richard Paulsen, assistant professor of sport management at the University of Michigan School of Kinesiology, addresses the major negotiation sticking points and why this is a pivotal moment in women’s sports.

The NBA owns 42% of the WNBA, yet the revenue sharing models and pay are very different, which are major sticking points. What is the owners’ position?

Just like in the current collective bargaining agreement, WNBA leadership is proposing a pay model with fixed maximum and minimum salaries that grow at fixed percentages year to year. The most recent CBA set a team salary cap at $1.3 million in 2020. Each year the salary cap has increased by a fixed 3%. Similarly, minimum player salaries were set below $70,000 in 2020 and maximum player salaries were set at around $200,000 and have grown at a fixed 3% each year. It has been reported that the league’s latest offer would raise maximum salaries to about $850,000 and minimum salaries to about $300,000. Those numbers would then grow at a fixed rate like in the prior CBA.

Increased prioritization of the WNBA by players is believed to be another top priority of the league. With current low levels of compensation many players compete in other leagues during the off-season. In some cases, these other leagues overlap with the WNBA season calendar. Additionally, many players compete with their national teams, and sometimes national team tournaments overlap with the WNBA calendar. With increased pay, it is believed that the league wants players to more greatly prioritize playing in WNBA games over competing in other leagues or international tournaments. The league may also ask for further increases in the number of games played, which could cause the calendar to further overlap with the calendars of other leagues.

What is the Women’s National Basketball Players Association’s position?

The WNBPA has expressed a desire for a salary model that ties compensation to league revenues, a model like that of the NBA. In the NBA, the collective bargaining agreement outlines that player compensation should amount to approximately 50% of league basketball-related income. Each year the salary cap is adjusted to reflect changes in league revenues, with a maximum year-over-year increase of 10%. While to my knowledge the WNBA players have not asked for 50%, they have expressed a desire for a fixed percentage of revenues and yearly changes in line with changes in league revenues, a model like that of the NBA.

While pay structure is likely the highest priority, there are some additional issues the players are believed to be prioritizing. One is minimum standards for practice facilities and other training resources. While some organizations have top-of-the-line practice facilities, others do not. Other priorities vary across players. Given the growing number of international players in the league, the WNBPA is likely to take issue with league desires relating to increased prioritization. The players are also likely to be resistant to add games to the schedule, especially in light of recent increases in the number of player injuries. For players who are parents, greater support for parents is likely to be a priority.

How might this resolve?

It is unlikely that the sides will come to an agreement before the Oct. 31 deadline. It is likely that the sides will agree to an extension, giving the sides more time to negotiate. This happened during the last CBA negotiations as well. If the sides cannot come to an agreement following one or more extensions, a lockout is possible.

I believe the sides will eventually come to terms that work for both the players and the league. If the league stands firm on their desire to have fixed salaries with fixed increases, those fixed salaries and fixed increases will need to be far higher than in the latest proposal for the players to consider accepting. If maximum player salaries were $3 million or $4 million, fixed yearly increases were closer to 10%, and the league conceded on several other important asks by the players, I could see the players accepting a proposal with fixed increases rather than pay directly tied to league revenues.

How significant is this moment for women’s basketball and for women’s sports?

This is a huge moment for women’s basketball and for women’s sports. The WNBA and women’s sports more generally have significant momentum right now. The NFL experienced significant conflict between players and ownership in the 1980s which produced instability for the league. Once those labor issues were resolved, major networks were willing to invest significant money into broadcast deals, and league revenues and popularity have grown substantially over the past 30 years.

Poor compensation for players is a major issue for the WNBA. Because players can earn significantly more in other leagues, a majority of players compete in other leagues. The players risk getting injured competing in these leagues. Diana Taurasi, the WNBA’s all-time leading scorer, even sat out a WNBA season once at the request of her team overseas because they didn’t want her getting hurt competing in the WNBA. They paid her more than her WNBA salary to do so. The biggest source of revenue for leagues like the NFL and NBA are broadcast deals. If I’m Fox or Disney bidding for rights to broadcast WNBA games, I’m offering less because I fear the biggest stars may not be available to play. While Caitlin Clark’s commitment to the WNBA has been unwavering, if I’m a broadcaster paying big money to show her games, I fear the possibility of her someday taking a huge offer from another league and either sitting out a WNBA season or suffering an injury.

Does the WNBA risk alienating its fans?

Yes. The NHL lost an entire season to a lockout in 2004-05. At the time I was a supporter of the NHL and a frequent watcher of games. During the lockout season I spent that time watching NBA games instead, and I never went back to watching NHL games. While I’m just one fan, my experience does illustrate the risk that comes with potential work stoppages.

Could the league survive a lockout situation?

The league is in a strong place, so I don’t think anyone should truly be worried about the league not surviving if a lockout were to happen. However, there are several major reasons it is important to get this deal done soon. First, there are two expansion teams joining the league for the upcoming season. Last year, an expansion team joined the league and an expansion draft was held in early December. I would imagine the league would hope to follow a similar timeline for this year’s expansion draft, if possible.

Second, in anticipation of substantial salary increases under a new CBA, almost all veteran players in the league are free agents this offseason. Free agency typically begins in January and again following similar timelines to prior seasons is ideal. Overall, this aims to be a busy offseason, and arriving at an agreement soon is important to ensure that no games are missed. Missing games would result in lost revenues for the league and lost pay for the players, an outcome that neither side wants.