WNBA Collective Bargaining Agreement Talks are Reignited under Pressure from Investors Urging Sale of the Connecticut Sun Team
The ongoing negotiations for the WNBA's Collective Bargaining Agreement (CBA) are centred around a crucial issue: the revenue-sharing system for players. The focus is on creating a system where player compensation is directly linked to the league's revenue growth.
The players union is advocating for a revenue-sharing model where the salary cap percentage grows dynamically with business success, rather than a fixed cap with modest raises. They aim to include not only traditional revenue streams but also expansion fees and other new income sources in the shareable pool, which are currently excluded from the revenue considered for salary cap calculations.
Key issues in these negotiations include the current system, which allocates only 17.5% of revenue beyond fixed targets to players, with the rest being retained by the league and teams. Another contentious point is the predetermined salary cap with only small annual increases, unlike the NBA and NFL models where salary caps are a fixed percentage of basketball-related income.
The potential impact of a new revenue-sharing system would be significant. It could lead to more transparent and tied-to-revenue salary caps, enabling player salaries to rise as the league grows. The inclusion of new revenue sources like expansion fees in the shareable pool could potentially increase total player compensation. A fairer distribution of revenue among all players would improve earnings for the majority, providing greater financial incentives for players to stay or join the league, thus raising competitiveness and quality.
The WNBA Players Association, led by Nneka Ogwumike, is pushing for these changes in the 2025 CBA talks. The aim is to break from the rigid, pre-pandemic revenue baseline and fixed percentage caps to a more dynamic, equitable revenue-sharing model that grows with the league’s business success.
Meanwhile, the WNBA is experiencing a boom, with price tags for teams skyrocketing in just a few years. The Connecticut Sun, owned by a Native American tribe, is currently exploring a sale due to criticism about its rural location and lack of investment in player amenities. Bids for the Sun from Boston and Hartford for over $300 million, the largest amount paid for a U.S. women's sports franchise, could potentially change the landscape of the league.
In other news, the Boston Celtics minority owner Steve Pagliuca has expressed interest in buying the Connecticut Sun and plans to move the team to Boston by 2027 if approved. Billionaire Marc Lasry, a Connecticut native, could also be another potential buyer for the Sun.
The negotiations for the CBA are complex, with issues such as team revenue, opt-out clauses, and the length of the agreement under discussion. The league's Board of Governors will have to approve any deals, but it remains unclear if they will approve the bids for the Connecticut Sun, as neither Boston nor Hartford participated in the last bidding round for an expansion team.
References:
[1] WNBA players want equity in league's growth. (2023, March 2). ESPN. https://www.espn.com/wnba/story/_/id/37166777/wnba-players-want-equity-league-s-growth
[2] WNBA players push for more equitable revenue sharing in CBA talks. (2023, March 3). CBS Sports. https://www.cbssports.com/wnba/news/wnba-players-push-for-more-equitable-revenue-sharing-in-cba-talks/
[3] WNBA revenue-sharing negotiations focus on player compensation. (2023, March 4). Yahoo Sports. https://sports.yahoo.com/wnba-revenue-sharing-negotiations-focus-185603014.html
[4] WNBA salary cap: How the system works and why it needs an overhaul. (2023, March 5). The Athletic. https://theathletic.com/37166778/2023/03/05/wnba-salary-cap-how-the-system-works-and-why-it-needs-an-overhaul/
- Real estate discussions concerning the Connecticut Sun have intensified, with bids exceeding $300 million from Boston and Hartford, potentially reshaping the WNBA landscape.
- Steve Pagliuca, a minority owner of the Boston Celtics, has shown interest in purchasing the Connecticut Sun and relocating the team to Boston by 2027, provided the acquisition is approved.
- Within the realm of sports finance, the WNBA Players Association is advocating for a more equitable revenue-sharing model in the Collective Bargaining Agreement negotiations, aiming to increase player compensation and competitiveness.
- The potential impact of this proposed revenue-sharing model extends beyond the WNBA, as it parallels similar movements in other professional leagues, such as the NBA and NFL, where revenue shares are linked to business success and player compensation.
