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Unprecedented Scenario: WNBA Athletes Set to Receive Cut from Expansion Dividends

Professional sports leagues, including the NBA, NFL, and NHL, omit expansion fees from their Collective Bargaining Agreements (CBAs) when determining their revenue, which in turn impacts the salary caps they establish.

Expansion fees divvied among WNBA players marks a distinctive departure
Expansion fees divvied among WNBA players marks a distinctive departure

Unprecedented Scenario: WNBA Athletes Set to Receive Cut from Expansion Dividends

The ongoing negotiations for a new Collective Bargaining Agreement (CBA) in the Women's National Basketball Association (WNBA) are facing a tense and uncertain future. With the October 31, 2025 deadline fast approaching, it seems increasingly unlikely that a deal will be reached before then.

A key point of contention in these negotiations is the issue of player revenue sharing. The players are advocating for a share of the league's expansion fees and overall revenue, which can grow as the WNBA expands and its business flourishes. Currently, the CBA features a fixed 3% salary cap increase per year, a figure many players find inadequate given the league's growth and the addition of new franchises set to debut in 2026.

The players are demanding a transformational CBA that includes a more dynamic revenue sharing system, including a share of expansion fees. This approach aligns with revenue sharing models in other major sports leagues, where players benefit from league growth.

As the two new franchises, Toronto Tempo and Portland Fire, add financial complexity to the negotiations, the question of how expansion fees are shared between owners and players has become a significant issue. While no detailed public agreement has been announced, the players’ position is that they should receive a meaningful portion of the expansion fees and increased league revenues.

The WNBA, which is owned 42% by its governors, 42% by the NBA, and 16% by a 2022 investment consortium, is currently transitioning from a single-entity structure to a structure of individually owned teams, similar to the path taken by Major League Soccer (MLS). The league is also in the midst of a facilities arms race, investing in new facilities for its teams.

If no agreement is reached by October 31, a short-term extension of the current CBA could be negotiated. However, the risk of a potential work stoppage or strike looms, as players remain ready to take strong action to secure better compensation and terms.

In summary, WNBA players are pushing for a new CBA that includes a growing share of league revenues, including expansion fees. The WNBPA is seeking a share of the expansion fees, which would be unprecedented in the WNBA. The players' union has reiterated its commitment to achieving a transformational CBA. The future of the WNBA hangs in the balance as both parties strive to reach a mutually beneficial agreement.

[1] The Athletic [2] ESPN [3] Sports Illustrated [4] CBS Sports

  1. In line with the ongoing labor negotiations for a new Collective Bargaining Agreement (CBA) in the Women's National Basketball Association (WNBA), key concerns revolve around player revenue sharing, particularly a share of expansion fees and overall league revenue.
  2. Sports analysts have pointed out that the WNBA players' push for a greater share of finance within the league is mirrored in other major sports businesses, where players usually gain from league expansion and growth.
  3. Amid tense negotiations and an approaching deadline, the perspectives of both WNBA owners and players, as represented by the WNBPA, seem far apart, with the potential for a work stoppage or strike looming over discussions regarding a transformational CBA.

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