The WNBA has been booming in recent years. With the likes of Caitlin Clark, Paige Bueckers, and others putting on a show, the revenues have been coming thick and fast for the league. Unfortunately, despite having an increased cash flow, the revenue distribution has been a major concern for the players.
With the likes of Angel Reese delivering a bold message to the WNBA, the ongoing CBA negotiations have taken quite a critical turn. And as the players call for an increased sharing of revenue, here’s everything you need to know about the WNBA revenue distribution rule.
How Do WNBA Teams Split League-Wide Revenues?
The WNBA generates a significant amount of revenue each year, and in recent years, that revenue has increased quite dramatically. Now, for context, the NBA allocates half of its basketball-related income to the players. Meanwhile, the league distributes the other half among the owners. The league then uses this basketball-related income (BRI) to determine the NBA’s annual salary cap.
Now, in the WNBA, the BRI is usually not considered when determining the salary cap. As per the current rules, the CBA has the final say about the salary cap. The CBA also sets the annual salary cap increase at a fixed percentage. And how the league deals with revenue sharing, well, it is quite a sorry story.
BREAKING: The WNBA are heading towards a LOCKOUT before their October deadline. 😳
— Hoops (@HoopMixOnly) August 27, 2025
Players turned down a deal that would’ve quadrupled their pay, minimum $66K to $250K, maximum $250K to $1M. 👀 pic.twitter.com/2fHZ4pct7L
As per the latest updates, the league will pay a 17.5% share of the total revenue directly to the players beyond a specific target. The league will also utilize an additional 17.5% of the share for the Player Marketing Agreements and signing new players. The rest of the 65% goes to the league and the teams. Surely, the athletes have vehemently opposed this.
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After all, the 17.5% share seems meagre compared with the NBA. As the players have been rooting for a raise, they came out with ‘Pay Us What You Owe Us’ t-shirts during the All-Star weekend. The situation is so grim that the WNBA has sought guidance from a Nobel-winning economist. Meanwhile, the WNBA revenue-sharing system also puts the small-market teams in a bit of a pickle.
What Impact Does WNBA Revenue Distribution Have On Small-Market Teams?
Compared to the NBA, the league’s significantly smaller earnings provide the small-market teams with less financial support. For example, the big-market teams are often located in large cities and sometimes also have shared ownership with NBA teams. Owing to this, these teams enjoy greater access to the local markets and have more room for sponsorships.
Adding further to the woes, the small market teams have to depend heavily on ticket sales and regional sponsors for generating revenues. Moreover, these teams will also have to depend mainly on their team’s on-court success. If the team performs poorly, the management often suffers a significant burden in continuing operational costs.