The NBA and WNBA reached an agreement with Disney, NBC and Amazon on a new round of TV deals worth $76 billion over 11 years, and the W will earn $2.2 billion over the life of the deal—or $200 million a year, according to someone familiar with the agreement—which represents a 6x gain compared to its prior ESPN deal.
The average annual value (AAV) of the agreed-upon combined NBA and WNBA rights package is more than 150% higher than the prior pact, which was worth $2.7 billion a year and expires after the 2024-25 season. The W commanded only 1% of the prior TV deal but nearly 3% of the current one. The two leagues negotiated their TV rights together, but they have different term sheets. The total value could move higher if the WNBA continues on its current growth trajectory; a clause in the deal allows the league and its partners to reexamine the rights deal after three years.
The NBA’s board of governors approved the deals Tuesday, and Warner Bros. Discovery, as the incumbent deal-holder, now has five days to match for a rights package. The Athletic was the first to report on the WNBA’s cut of the new agreement.
The WNBA also expects to sell two additional packages of games that could be worth $60 million or more per year. The league currently has media deals with Ion, CBS and Amazon on top of its ESPN agreement. The deals, including ESPN, are worth $60 million this year, but the AAV was $43 million. When all of the agreements are reached, the WNBA’s average annual TV rights fee will be worth at least $260 million. CBS and Ion are be the favorites for additional packages.
It is a massive win for the 28-year-old league. Commissioner Cathy Engelbert previously said that she wanted to double the league’s rights fees, and instead they will likely rise 500%.
The average WNBA franchise is worth $96 million, according to Sportico’s June team valuations, a 45% premium to the average NWSL team last year. Investors have been buying limited partnership stakes at soaring valuations, with anticipation of the new media deal part of the calculus. The WNBA secured expansion teams in San Francisco and Toronto, but a team has not changed hands since 2021, when the Atlanta Dream and Las Vegas Aces sold for single-digit millions of dollars. The Aces, which sold for $2 million, are the WNBA’s most valuable team at $140 million.
Not all of the WNBA’s TV money will filter down to team owners, since the league’s equity was previous split 50-50 between NBA owners and WNBA owners. In early 2022, the W also announced it raised $75 million from a group of strategic investors including Nike, Michael Dell, Linda Henry, Dee Haslam, Condoleezza Rice, Micky Arison and Laurene Powell Jobs. Some like Ted Leonsis (Washington Spirit), Joe Tsai (New York Liberty) and Herb Simon (Indiana Fever) tripled down on the league. They were part of the raise, owned WNBA teams and owned a stake in the league through their NBA team ownership.
The deal carved out 16% for the new consortium at a $400 million valuation, or $475 million post-money value. It means that 42% of central revenue—mainly TV money—funnels down to the WNBA clubs.
