The WNBA’s Financial Struggles and the Missed Opportunity of Caitlin Clark

Since its inception in 1997, the Women’s National Basketball Association (WNBA) has struggled to achieve profitability. In 2018, NBA Commissioner Adam Silver disclosed that the league had been losing an average of $10 million annually since its inception. Despite impressive attendance records and growing interest, the WNBA is projected to lose $50 million in 2024. This persistent financial struggle has long puzzled many, particularly given the high salaries and commercial success of their male counterparts in the NBA.

The core of the issue lies not in the talent of the players but in the league’s inability to leverage opportunities for growth effectively. The case of Caitlin Clark, a standout player from the University of Iowa, highlights a significant missed opportunity for the WNBA to turn its fortunes around.

Clark, who was the first overall pick in the 2024 WNBA Draft, immediately made an impact on the league. Her presence not only boosted the Indiana Fever’s attendance from an average of 4,000 to 16,000 per game but also energized the league’s fan base. Her extraordinary skills and star power brought unprecedented attention and excitement to the WNBA.

However, the WNBA’s financial prospects could have been further transformed during the 2024 Paris Olympics—a golden opportunity to showcase Clark on a global stage. The Olympics are a prime platform to elevate players to international stardom, akin to how the 1992 U.S. Men’s Olympic Basketball Team, famously known as the “Dream Team,” captured global attention. Clark’s inclusion on the U.S. Women’s National Basketball Team could have served as a significant marketing tool, potentially expanding the league’s fan base and revenue.

Instead, Clark was controversially excluded from the Olympic roster. The decision was justified by the committee as a matter of selecting the best 12 players based on their performance metrics. Despite Clark’s impressive stats—ranking 13th in the league in scoring and leading in assists—the committee chose to overlook her. This decision, driven by the focus on winning gold rather than marketing and revenue generation, failed to recognize the broader potential of Clark’s star power to elevate the WNBA.

The WNBA’s refusal to include Clark is emblematic of its broader issues. High-profile players like Brittney Griner, who in 2022 was among the league’s highest-paid but still had to play in foreign leagues to supplement her income, and Liz Cambage, who turned to platforms like OnlyFans to make ends meet, highlight the financial struggles faced by players. Lower-tier players, earning as little as $45,000 annually, face even more challenging circumstances. This ongoing financial instability is a significant concern for the league, which needs to generate more revenue to ensure fair compensation for its athletes.

Caitlin Clark’s omission from the Olympics not only disappointed fans but also affected attendance and viewership for women’s basketball games at the Paris Games. The game featuring Team USA had the lowest attendance among the six women’s basketball matches, further underscoring the lost opportunity.

In retrospect, the decision to exclude Clark has been criticized as a significant strategic error. The league had a chance to harness Clark’s popularity to drive global interest in the WNBA, but instead, it chose to prioritize immediate competition outcomes over long-term business gains. This misstep highlights a recurring issue within the league: a tendency to prioritize short-term objectives over strategic opportunities that could address its long-standing financial challenges.

The WNBA’s ongoing struggle with profitability and its handling of high-profile opportunities like Caitlin Clark’s inclusion in the Olympics reveal a deep-seated issue within the league’s management and strategy. The focus on immediate competition and traditional metrics has overshadowed the potential for broader business growth. Until the WNBA can reconcile these priorities and effectively capitalize on star power and global platforms, its financial difficulties are likely to persist.