ARTICLE
1 November 2024

Double Dribble—The Popularity Of Women's Basketball No Match For Potential Work Stoppage

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Ford & Harrison LLP

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FordHarrison is a labor and employment firm with attorneys in 29 offices, including two affiliate firms. The firm has built a national legal practice as one of the nation's leading defense firms with an exclusive focus on labor law, employment law, litigation, business immigration, employee benefits and executive compensation.
Sunday night was a sports lover's dream. Game 6 of the National League Championship series pitted a team from New York against a team from Los Angeles...
United States New York Media, Telecoms, IT, Entertainment

Sunday night was a sports lover's dream. Game 6 of the National League Championship series pitted a team from New York against a team from Los Angeles (and by virtue of the latter's victory, a World Series appearance against the other New York team). Sunday night football between the New York Jets and Pittsburgh Steelers featured two former Super Bowl winning quarterbacks trying to find the fountain of youth to lead their new teams to the playoffs. The NHL season had just started, and the NBA preseason presented other viewership options for hoops junkies. It was the rare day on the calendar when games were held in all four major sport leagues. 

I tuned into Game 5 of the WNBA finals, a winner-takes-all game between the New York Liberty and the Minnesota Lynx (and as a Chicago sports fan, can we pause a minute to think of the embarrassment of riches in New York this Autumn; Abe Frohman would give a lifetime supply of sausages to have one of our teams playing with this level of success). The game and the series were fantastic. Tremendous defense, timely buckets, the game going into overtime, and a controversial referee call at the end of regulation, culminated in the Liberty's first championship in 28 years of existence. It was a fitting topper to a banner year. 

The “high” of that night ended less than 24 hours later, as on Monday, the WNBA Player's Association opted out of its collective bargaining agreement two years before expiration. Despite being more popular than ever, a work stoppage is likely as soon as the end of next season. 

Unsurprisingly, like with most labor disputes, compensation is at issue. The league veteran minimum is a shade above at $78,831. The MVP of the league (and three-time winner), A'ja Wilson earns about $200,000 annually. These low salaries are, in part, the reason why many players spend their offseason overseas, where wages are much higher (for those wondering why Brittney Griner was in Russia when she was arrested for possession of cannabis). While improvements have been made in other terms and conditions of employment (e.g., new practice facilities have been built and players now travel on charter flights), the Union also is seeking improved retirement benefits and assistance for those raising families. While reports are that the Player's Association is not seeking NBA wages, where the average player makes $12 million a year (compared with $147,000 in the WNBA), they are looking for the same 50-50 revenue split.   

At first blush, the players have a point. One cannot debate the transformational effect of Caitlin Clark, the Indiana Fever rookie who transcends pop culture and sport. Or those on the U.S. Olympic Team, who have not lost to any team since 1992, and this summer, set the basketball record (men or women) for consecutive victories. One can argue that a league that now has an 11-year $2.2 billion dollar media rights deal, a 47% increase in television viewership, and is selling out arenas, must give a larger piece of the proverbial pie to the players. 

But peeling back the onion shows a slightly different picture. Although it is unclear what the WNBA is looking for in negotiations, the NBA has subsidized the WNBA for years, which has on average, lost $10 million per year. Losses for this past season may rise fivefold due to the switch to charter flights. The NBA currently owns more than 40% of the league, with outside investors owning about 16%. Which leaves less than 50% in the players' revenue sharing bucket. Yes, a $2.2 billion rights deal pops, but there are other entities who have been losing money for decades who also want “their” share of this largesse. 

Reports suggest that the Union intends to negotiate as long as possible and entertain a work stoppage should their demands not be met. All signs are that the WNBA will continue to grow, marketing and advertising will continue to flow in record numbers, and stars like Caitlin, Angel, Sabrina, A'ja, and Kelsie will be referred to on a first name basis like Lebron, KD, and Giannis. But the argument over who is responsible for the league's growth, the players who have never been more popular versus the owners who have lost millions annually and are finally in position to reap the rewards of their investments, will be the dominant storyline as the next season plays out. 

In 1994, after a scintillating Stanley Cup playoff where the New York Rangers ended a 54-year championship drought (what is it with these New York teams), Sports Illustrated ran a cover story entitled, “Why the NHL's Hot and the NBA's Not.” Instead of building on that dramatic championship, a work stoppage delayed the next season until January, and when hockey returned, it was “cold as ice.” Here's hoping that a fair deal can be reached, and the women's game, which has been so de

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