LeBron James is the most marketable star in the NBA; there is no denying it. To that end, the NBA and his team pay him nearly 40 million Dollars, a sum most other athletes balk at. He is also a billionaire.
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While it does seem exorbitant, LeBron is solely responsible for generating TV revenue, Jersey sales, TRP, social media presence, and overall marketability. His name is synonymous with the NBA.
In comparison, Kelsey Plum, a star in her league, is only known for chucking a T-shirt into the stands without a cannon. She is paid 200,000 Dollars, a pittance in comparison to some of the NBA’s best. An even worse statistic is that she makes less than the veteran minimum of the NBA.
Her complaint is simple: Pay us the same percentage split NBA players get. On the face of it, it seems like a cogent argument, but one look at the financials will show why that cannot stand.
The WNBA players want a bigger share of the pie – it’s not financially possible
The WNBA, a league that was created 26 years ago to facilitate the growth of women’s sports, is now at a crossroads. The highest-paid players in their league barely make what big-name players make in a day—a huge disparity.
In the fight for quality and equal pay, we think there is a lack of logic. Be it the US Women’s Soccer team lobbying for their salaries or the WNBA players for theirs, only one thing matters in the entertainment industry. Money brought in equals money being paid.
Everyone agrees that men and women deserve equal pay. But since the WNBA doesn’t generate as much revenue how do you make it happen? The NBA is already subsidizing the league, and even then they lose 10 million a year.
Bringing in Cathy Engelbert, the former CEO of Deloitte, seems to have arrested the slide a bit. A new CBA has been discussed, and a new revenue split has been signed. But we think Kelsey Plum is not aware of actual percentage splits.
It is simple: they make a certain amount of revenue, and they get the 50-50 split they are fighting for. It is there in their CBA, but the league has never done it. The WNBA made 60 million dollars in 2018 (latest statistics), while the NBA had a revenue of 7.4 billion dollars for the same year.
LeBron James will be the gold standard for all comparisons – His salary alone is how much the WNBA spends on expenses
The WNBA’s minimum overhead expenditure is $45 million, cutting costs to a bare minimum. That excludes player salaries. Given the revenue was only $60 million in 2018, that would mean the players only have $15 million as a whole pie. Coincidentally, $45 million is what LeBron James makes in a year.
If the WNBA were to be a zero-cost league, they’d make less than they do now. But they aren’t. They are in the red, which means that the players must pay for the game out of their own pockets, to continue playing.
The NBA had humble beginnings, and the viewership grew gradually as time progressed. The salaries of the players in the 25th year of the NBA were at a median of 90,000 Dollars at that time.
Adjusting for inflation would make it 590,000 Dollars in today’s money. The highest-paid WNBA player would still make about three times less. All of this boils down to viewership.
It is all about relative growth and good marketing. While Kelsey is well within her rights to demand the same percentage splits, perhaps she should appeal for better marketing. And in a few years, she will earn what she rightfully deserves.
