WNBA players opt out of CBA: Salaries, long-term benefits among ...

22 Oct 2024

Michael Voepel

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Michael Voepel

ESPN Senior Writer

Michael Voepel is a senior writer who covers the WNBA, women's college basketball and other college sports. Voepel began covering women's basketball in 1984, and has been with ESPN since 1996.

Alexa Philippou

WNBA - Figure 1
Photo ESPN Australia

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Alexa Philippou

ESPN

Covers women's college basketball and the WNBA Previously covered UConn and the WNBA Connecticut Sun for the Hartford Courant Stanford graduate and Baltimore native with further experience at the Dallas Morning News, Seattle Times and Cincinnati Enquirer

Oct 22, 2024, 09:40 AM

The WNBA players' union announced Monday that the players will opt out of their current collective bargaining agreement with the league. The news comes a day after the WNBA Finals concluded with the New York Liberty winning their first league title.

The announcement isn't a surprise. It has been assumed that the players would opt out, which they also did in 2018 for their previous CBA. The current agreement was reached in January 2020, one of the first major accomplishments for the league under Cathy Engelbert, who took over as commissioner in 2019.

The players had until Nov. 1 to opt out, but made the announcement with the impact of the best-of-five WNBA Finals still resonating in the sports world. The current agreement lasts through Oct. 31, 2025, giving the league and the union a year to negotiate the next agreement.

In July, the WNBA announced a new 11-year media rights deal featuring partnerships with Disney, Amazon Prime Video and NBCUniversal. It is valued at about $2.2 billion, or $200 million per year, but future agreements with additional partners could bring the league's overall media deals closer to $3 billion.

Women's National Basketball Players Association president Nneka Ogwumike of the Seattle Storm referenced the gains made by the league since the last CBA -- which was in place before the COVID-19 pandemic -- and said the time was right to move forward.

"This is a defining moment, not just for the WNBA, but for all of us who believe in progress," Ogwumike said in a statement. "The world has evolved since 2020, and we cannot afford to stand still. If we stay in the current agreement, we fall behind.

"Opting out isn't just about bigger paychecks -- it's about claiming our rightful share of the business we've built, improving working conditions, and securing a future where the success we create benefits today's players and the generations to come."

A highly anticipated draft class led by Rookie of the Year Caitlin Clark of the Indiana Fever helped bring greater coverage than ever before to the WNBA. That has added to the league's bottom line and pushed forward discussion of players' star power and economic impact.

ESPN examines what the opt out means for the league, the timing of the decision and the impact it will have on the WNBA for the next year and beyond.

Why is the WNBPA opting out now?

With women's basketball growing enormously over the past couple years, all signs pointed to the WNBPA opting out of the current CBA. The business side has been booming, with ratings and attendance numbers the best teams and the league have seen in decades, if not ever. And Engelbert said the league's $2.2 billion media deal will fuel a sustainable, long-term economic model.

WNBA - Figure 2
Photo ESPN Australia

The players see this as the moment to take the sport's rise and turn it into transformational change that can shape the league for the years to come.

"With this surge of attention, accessibility, visibility and, of course, investment in dollars, the most pressing thing to consider right now is how we use those dollars to continue to grow and also value the players," Ogwumike told ESPN in July, "and seeing what that looks like in what feels like a very transformational period in our league." -- Philippou

What are the big issues driving this opt-out? What will be the priorities for players?

The players essentially knew they would opt out of this agreement when they signed it in 2020. What they couldn't have known at that time was just how much would change by October 2024.

Some of the biggest issues with the previous CBA have been addressed, such as charter flights, which are now used for all games as of the 2024 season. There were player concerns about how that process was rolled out and some inequities in the charters themselves. But those things can be worked out, and this was a major step forward for the players.

In talking to players during this season, ESPN found that pensions -- including for former players -- and more support for players with children were topics that came up a lot for the next CBA. Franchises have recognized the importance of practice facilities and have pushed each other forward. The necessity for top facilities for practices and games is no longer something any franchise can ignore.

The push to increase wages has been there with every CBA in the league's history, so salaries will be on the table. Players are determined to see their value to the league more reflected in how they are paid. -- Voepel

What specific changes to the salary structure might the WNBPA be looking for?

Increasing salaries is only part of the equation. The maximum for 2024 was $241,984, while the minimum salary for players with zero to two years of service (including rookies) was $64,154.

But players are also interested in potentially changing how the cap works. Teams currently operate with a hard cap (of $1,463,200 in 2024) that can be restrictive, but the players can push for the adoption of a soft cap or more creative salary structures.

"Opting out isn't just about bigger paychecks -- it's about claiming our rightful share of the business we've built ..." Nneka Ogwumike, WNBPA president

In a news release, the union mentioned a priority of "transforming the current system, which imposes arbitrary and restrictive caps on the value and benefits players receive, by introducing an equity-based model that grows and evolves in step with the league's business success."

"We're getting to a point where the salary cap and the systems and that part of the business needs to start looking like a professional league that's not a startup, that properly values the labor and properly values the players," Terri Jackson, the WNBPA's executive director, told ESPN in July. "We haven't really done that with this kind of rigid, hard cap system that we have, and it's unfortunate."

The salary conversation also bleeds into prioritization, a set of rules that require players to arrive to WNBA training camps on time from their overseas commitments. Prioritization was something the owners wanted in the last negotiations; it'll be interesting to see whether the players can loosen those restrictions, and how increased salaries could help solve the problem by keeping a lot of players stateside in the first place. -- Philippou

What is important to the league and owners?

Throughout the league's existence, specifics about its finances have been hazy. The NBA's assertion over the years is that the WNBA annually loses money and that the franchises don't accrue in value. However, economic assessments -- like what the Storm ownership group did before beginning work on Seattle's practice facility -- showed franchises were starting to accrue in value. Another key indicator: The WNBA will expand by three more teams in the next two seasons. The league expects to add one more to reach 16 teams by 2028.

The players have good reason to want to partake in the league's increased economic growth. But they also must understand how much ownership groups might have lost over the years and make sure what they are asking for is sustainable for all parties. -- Voepel

Could a work stoppage be on the horizon?

With the 2025 season unaffected by the opt-out, players and the league have a year-plus to negotiate and create a new CBA that would go into effect heading into the 2026 season. According to ESPN's Chiney Ogwumike, players are prepared to negotiate for as long as it takes, even if it means a work stoppage -- something that would be unprecedented in the league's history. -- Philippou

With the opt-out looming, the majority of players in the league have not signed long-term contracts past 2025, expecting a boost in salaries from a new CBA. As such, 2026 free agency -- which will also line up with the launch of two new expansion teams in Toronto and Portland -- could be as close to a free-for-all as we've ever seen. Phoenix Mercury general manager Nick U'Ren even joked to the Washington Post that executives should treat free agency like a "fantasy football draft. We should all just get together, get a table and we'll just do this thing in one room." -- Philippou

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