WNBA's Media-Rights Deal: A Game-Changer with Potential for Greater Growth
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The Women's National Basketball Association (WNBA) is poised for a significant leap in its media-rights revenue, thanks to a historic deal that may exceed initial projections. Signed with Disney, NBCUniversal, and Amazon, the 11-year agreement is valued at $77 billion, with $2.2 billion earmarked for the WNBA—approximately $200 million per year. However, the league could see its total rights fees climb to as much as $3 billion by the end of the term, according to ESPN.
A source revealed to Front Office Sports that the WNBA expects to pull in over $260 million annually from broadcasting fees, more than quadrupling its previous deal. This increase is attributed to the potential addition of new partners, with CBS and Scripps Sports being the most likely candidates. Both companies have existing deals with the WNBA that expire in 2025, aligning perfectly with the commencement of the new media-rights deal.
The WNBA's media-rights journey has seen substantial growth. Initially partnered with ESPN for approximately $40 million annually, the league's revenue increased to $60 million per year after bringing Amazon, CBS, and Scripps on board. The anticipated $260 million per year surpasses the valuation provided by Endeavor’s media consulting group, highlighting the league’s remarkable growth spurred by rising stars like Caitlin Clark and Angel Reese.
Expansion is a key driver of the WNBA's escalating value. The league is set to grow to 13 teams next season, with plans to add a 14th team by 2026. Additionally, the regular-season schedule will expand from 40 to 44 games, offering more content to sell to broadcast partners eager to capitalize on the WNBA's increasing popularity.
Despite the WNBA's rising trajectory, discussions about its potential independence from the NBA persist. While the WNBA has shown significant growth, the NBA has played a critical role in its development. Five of the 12 WNBA teams are owned by their NBA counterparts, and the NBA has invested heavily in the league.
The benefits of the WNBA's partnership with the NBA are evident, particularly in securing lucrative media-rights deals. Former MLB executive David Samson has noted that the WNBA's growth is often attributed to its association with the NBA. On the other hand, John Skipper, former ESPN president, emphasized that the WNBA sees advantages in remaining tied to the NBA, especially in negotiating substantial media deals.
WNBA commissioner Cathy Engelbert supports this partnership, suggesting that the combined offering of live programming from both leagues is attractive to streamers. However, the question of whether this partnership is the best long-term strategy for the WNBA remains contentious. Larry Gottesdiener, managing partner of the Atlanta Dream, argues for more independent ownership to ensure the league's long-term health and viability.
In conclusion, the WNBA stands on the brink of transformative growth, driven by a landmark media-rights deal and strategic expansion. The league's future, whether in continued partnership with the NBA or through greater independence, promises to be an exciting journey for fans and stakeholders alike.
