The Resilience of the WNBA During and After the Pandemic
In the spring of 2020, as the world grappled with the unprecedented challenges posed by the COVID-19 pandemic, WNBA Commissioner Cathy Engelbert found herself in lockdown at her New Jersey residence. The league was facing a pivotal moment as it teetered on the brink of a season that could have significant ramifications for its future. The early days of the pandemic revealed the palpable tension among league stakeholders, who understood that without a season, the WNBA might enter what Engelbert later described as an “existential” crisis, potentially going dark for as long as 20 months.
“I don’t know if we would have made it, but I do know we wouldn’t be where we are today without having had that highly competitive 22-game season in the bubble,” Engelbert reflected.
A Celebration of Success: The WNBA Finals
Fast forward four years since the inception of the “Wubble,” the league is now reveling in the excitement of the WNBA Finals, featuring the New York Liberty and Minnesota Lynx, marking the culmination of the most successful year in its history. The WNBA is experiencing unprecedented growth: television ratings are soaring, attendance figures are rising, and a wave of interest—both in terms of talent and fan engagement—has swept through the league. This surge is fueled by the remarkable performances of seasoned stars like A’ja Wilson and Breanna Stewart, alongside the electrifying arrival of Caitlin Clark. With three expansion teams already announced and another on the horizon, the future looks bright. Furthermore, a lucrative new media deal is set to take effect in 2026.
Challenges and Growing Pains
However, this progress has not come without its share of growing pains. For years, WNBA players have advocated for private charter flights for teams traveling between games—a standard practice in the NBA and most other major professional sports leagues. This season, the league finally granted that request. There have been instances where high-profile games were rescheduled due to scheduling conflicts, and fans have voiced their frustrations regarding merchandise availability and broadcast accessibility. Recently, Engelbert faced criticism from players, including a rebuke from the players’ union, for what they deemed an insufficient public response to the online harassment many players experienced this season. Additionally, the union has consistently called for greater transparency regarding the league’s finances and operations.
A Decision that Changed Everything
Despite these challenges, the league is undeniably on an upward trajectory, and the decision to play in 2020 is often hailed by team owners as a critical springboard. “I think it was one of the best decisions made in the history of this league,” stated Lisa Brummel, co-owner of the Seattle Storm.
This pivotal decision not only kept the WNBA in the public consciousness but also led to a stronger player community. Importantly, it allowed the league to continue generating revenue through media rights and corporate partnerships. A few months after the 2020 season concluded, the WNBA embarked on a capital raise that significantly impacted its growth and popularity. Stakeholders believe that without that critical window, the WNBA might not have reached its current heights.
Engelbert’s Vision for Growth
When Engelbert became the WNBA’s first official commissioner in 2019, she embarked on a mission to revitalize the league. During her interviews with team owners, a common theme emerged: after nearly three decades of striving for stability, it was time for the WNBA to expand. Engelbert articulated this sentiment with a straightforward mantra: “Go big or go home.” The league needed a significant infusion of capital to grow.
Discussions with influential figures, including the late Kobe Bryant, provided further insight. When Engelbert shared the WNBA’s need for additional funding, she mentioned a target of $50 million, a figure that would eventually pale in comparison to what was ultimately secured from investors.
The Capital Raise and Its Impact
In early 2021, the WNBA released a pitch deck to potential investors, led by the Liberty’s ownership group, which also owns the Brooklyn Nets and Blue Pool Capital, a private equity firm. “At the time, we really needed that infusion of capital,” remarked Clara Wu Tsai, co-owner of the Liberty. This marked a significant shift for the WNBA, which had relied on the NBA for support during its formative years. Now, the league sought financial backing from external sources to bolster marketing, brand development, digital innovation, and revenue generation.
By the following year, the WNBA successfully closed a $75 million capital raise, achieving a $475 million post-money valuation. Major investors, including Michael Dell and Nike, played a significant role, with Nike contributing $25 million. Engelbert noted that Nike’s investment was a natural fit, aligning with their strategy to enhance women’s sports.
- Investors acquired approximately a 16% stake in the league, with WNBA and NBA owners each retaining half of the remaining shares.
- Investors received preferred equity, ensuring priority returns on their investments with a 5% dividend.
- Though they hold non-voting shares, investors also have two observers on the Board of Governors.
Transformations in the WNBA Landscape
The financial landscape of the WNBA has shifted significantly since the capital raise, fostering growth and improved business prospects. Engelbert’s leadership has positioned the league as a viable growth property, transforming it from a struggling entity to one on the rise.
When Wu Tsai and her husband, Joe Tsai, acquired the Liberty in January 2019, they recognized the potential of a franchise that had seen better days. They understood the allure of New York as a media market and believed there was a passionate fan base waiting to be revived. With the Liberty now averaging nearly 13,000 fans per home game—a remarkable 64% increase from the previous year—attendance and merchandise sales have surged. The franchise has also expanded its sponsorship roster to include 53 partners, generating a 68% increase in partnership revenue.
Looking Ahead: The Future of the WNBA
The WNBA is not alone in this growth trajectory. The Indiana Fever, aided by the remarkable talent of Caitlin Clark, has also set records in attendance and merchandise sales. The Dallas Wings have seen such an influx of interest that they had to adjust their ticket revenue projections three times this season, anticipating another record-breaking year.
As franchises upgrade their facilities and invest in their futures, the WNBA is poised for further success. The Chicago Sky, for example, recently broke ground on a new 40,000-square-foot practice facility, set to open before the 2026 season.
“This was a leap from many years where people thought, is this going to be sustainable?” remarked Joe Soper, governor of the Connecticut Sun. “Now you’re getting this visibility, and everybody gets to see the talent and the growth.”
As franchise valuations continue to rise, Engelbert believes they will keep escalating “considerably.” The WNBA’s financial landscape has transformed from single-digit million dollar franchise sales to a current $125 million expansion fee for new teams, showcasing the league’s potential.
With record average viewership numbers and a new $2.2 billion media deal on the horizon, the WNBA’s stakeholders are optimistic. Engelbert acknowledges the need for continuous adaptation, emphasizing that the league’s rapid evolution requires a forward-thinking approach.
“Everything’s changing in the W,” Engelbert concluded. “I tell my team, don’t base this on last year because everything changed this year, and we must think about what’s next for us.”
The coming years promise to further shape the WNBA, as discussions about a new collective bargaining agreement loom. Players are advocating for heightened salaries, while teams aim for profitability. Despite the challenges ahead, the WNBA is entering a new era of opportunity and growth, and its recent success is likely to become the new standard.