Compensation and Sponsorship Potential for WNBA Rookie Caitlin Clark
American college basketball sensation Caitlin Clark will receive less than six figures in her rookie season with the Indiana Fever, reigniting the debate over the fair compensation of professional women athletes in the U.S.
Clark, who was this year’s No. 1 draft pick in the WNBA, will start with a salary of $76,535 and is expected to earn around $338,000 over the duration of her four-year contract with the Fever.
The league’s collective bargaining agreement dictates that the second, third, and fourth picks in this year’s draft will also receive a starting salary of $76,535 in their first year. The base annual pay for all four athletes will see gradual increases over the next few years, reaching $97,582 in 2027.
According to the players’ agreement with the league, lower-ranked WNBA draft picks earn less, following a defined wage scale. Additionally, players have the opportunity to earn bonuses based on their performance at the end of the season. As an illustration, the “Rookie of the Year” accolade includes a $5,150 bonus.
Clark’s earnings are not solely reliant on her WNBA salary. It is anticipated that she will sign sponsorship deals that could significantly boost her income. Already, her name, image, and likeness are valued at $3 million, a figure expected to grow, and she has already been featured in TV commercials for brands like Gatorade, State Farm, and Nike.
Comparing WNBA Rookie Salary to NBA Counterparts
However, Clark’s base pay is considerably lower compared to her counterparts in the NBA. For instance, rookie Victor Wembanyama, the first pick in last year’s NBA draft, earned over $12 million for the 2023-24 season, his first year in the NBA.
Source: Spotrac
Graphic: Alex Leeds Matthews, CNN
Source: Spotrac
Graphic: Alex Leeds Matthews, CNN
Some online commentators have expressed surprise at Clark’s pay. President Biden also weighed in on the issue of pay disparity in sports, stating, “Women in sports continue to push new boundaries and inspire us all. But presently, we’re witnessing a situation where even the most talented women are not receiving fair compensation. It’s imperative that we afford our daughters the same opportunities as our sons and ensure that women are remunerated commensurate with their contributions.”
Certainly, the question of what female athletes “deserve” is subject to debate. The NBA has a longstanding history and generates billions of dollars annually. In contrast, the WNBA, established in 1996, is considerably smaller, with an estimated annual revenue of around $200 million, according to a report from Just Women’s Sports.
WNBA Compensation Realities and Caitlin Clark’s Impact
Regarding individual player compensation, Greg Bouris, a professor of sports management at Adelphi University, highlighted the finite financial resources available for the WNBA. He emphasized that for player salaries to rise, the league needs substantial revenue growth. Bouris summarized, “Ultimately, it boils down to economics.”
Despite Caitlin Clark’s remarkable success in college basketball, her transition to the professional arena poses a new challenge, according to Bouris. This is one reason why both the NBA and WNBA implement caps on rookie salaries. “New players are entering a highly competitive environment against some of the best basketball athletes globally, and they have yet to demonstrate their capabilities at this level,” Bouris explained. “Success at one level doesn’t necessarily ensure success at another.”
However, it’s anticipated that Clark will inject significant excitement into the league, much as she did in boosting viewership for the women’s NCAA tournament above that of the men’s.
“Bouris emphasized, “She’s coming into the WNBA with substantial momentum in terms of media coverage, providing the league with a chance to capitalize on it. Her influence on the league’s economic landscape is considerable. She’s positioned to uplift the entire league.”
WNBA Salary Disparities and Efforts Towards Equity
The Women’s Sports Foundation, an advocacy organization for women in sports established by tennis legend Billie Jean King, has highlighted the comparatively low salaries in the WNBA as a contributing factor leading many top players to compete overseas during the U.S. league’s offseason to supplement their incomes. This includes WNBA star Brittney Griner, who faced legal issues while playing in Russia and previously cited the pay gap as a primary motivation for playing abroad.
In recent years, the WNBA has taken steps toward promoting pay equity.While NBA players collectively receive around 50% of the league’s revenue, WNBA players previously garnered less than 23%. However, this percentage increased to 50% under the latest labor agreement with the league.
The persistent pay gap in professional basketball, as well as in most other sports, persists, with only female tennis players achieving some level of equity. For instance, in the NBA, the minimum rookie salary for the 2022-23 season stood at $953,000, as reported by Spotrac. Ketra Armstrong, a sports management professor at Michigan University, expressed her perspective that while she sees Clark as underpaid considering her skill level, the same applies to many WNBA athletes.
Armstrong highlighted the structural nature of the issue, emphasizing the vast revenue disparity between the NBA and WNBA. She underscored that for WNBA salaries to rise, the league must secure larger broadcast deals, more lucrative sponsorships, and increased ticket and merchandise sales. However, Armstrong sees the current moment as a potential turning point for the league, driven by the impact of players like Caitlin Clark. She believes that increased ticket sales, merchandise sales, media exposure, and overall investment could lead to revenue growth and salary improvements for WNBA players.
