Over the years, the WNBA has seen many changes. Stars coming in, spectators loving the game, new franchises adding to the league, new markets explored, and many more. Along with this, the league and players’ association mutually agreed on how to manage the influx and changes in the league through a number of Collective Bargaining Agreements (CBA). In these new additions, roster management and salaries were key issues that were handled, and the WNBA Protected contract rule played a vital role.
With waivers in consideration, the rule is an essential tool for players. As the term explains, it protects players from loss of earnings and defers from regular contracts. Protected contracts offer additional economic security for veteran players and are a major part of roster-construction considerations around the league.
How Do WNBA Protected Contracts Differ From Regular Contracts?
Such teams in the WNBA can award players with protected or unprotected contracts. Both protected and unprotected contracts pay players for their time on the team, but differ in terms of what happens if the team decides to cut the player.
Unprotected Contracts (Standard Contracts)
When the player has an ‘uncovered contract’, a team can release (cut) the player prior to the expiration of the contract, and the team is not bound to pay the player any salary beyond that point.
This is normal for rookies, training camp invitations, or players fighting for the final roster position. If they don’t make the roster, there is no financial consequence to the team releasing them.
Protected Contracts
A protected contract, on the other hand, pays guaranteed money. If a player with a protected contract is waived, he is still owed the full value of his salary for the year (and possibly more if the contract is multi-year).
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It gives security to the players and sends a message that the team values them enough to make commitments regardless of what transpires during a season. The WNBA operates with a hard cap on salaries, i.e., teams cannot go over the cap during the season. Teams also have restricted rosters—usually 11 or 12 players. That makes every dollar and every roster spot more valuable than gold.
So when a club gives out a protected contract, it risks money. If the player performs poorly or injury limits their availability, the club is still on the hook to pay them—and may not have room to sign anyone else. Teams have to be careful who they protect because it takes away from their future flexibility.
What Happens If A WNBA Team Waives A Protected Player?
Waiving a protected player under contract in the WNBA is a big deal. It can have a significant financial and roster construction effect on the team.
When a WNBA team waives a player with a protected contract, they receive 100% of their guaranteed salary. Even more important for clubs: the waived protected player’s wages still remain against the team’s salary cap. This can be huge. Because of the cap penalties, clubs sometimes have to decide between retaining a protected veteran and signing a few more younger, cheaper players.
Even if a team waives a player, the player is still eligible to sign with a new team if the new team has available roster space. Nevertheless, their old team still owes them their protected salary unless their new team has a buyout or new contract that takes up some of the cost. This leads to interesting but unusual events where a player can receive salary from two teams at once—one for letting them go and another for taking them on.