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The WNBA and the players’ association are still far from an deal on a new CBA, even as the extended deadline agreed upon in recent negotiations is fast approaching.
According to a report by ESPN, talks are currently stalled largely because of disagreements over a revenue sharing system.
The league’s front office is reportedly against the WNBPA’s proposal to give players a 30% share of gross revenue as it would apparently end up costing the league $700 million in losses over the course of the agreement, based on a previous financial audit.
However, the players’ union disagrees with that assessment, calling the figure “absolutely false,” and has said that the move would actually leave the league in a “profitable position”.
WNBPA’s Latest Proposal Meets Resistance From League Leadership
The WNBPA factored in the recently announced expansion franchises’ fees of $250 million each into its projections, seeing them as real money that still adds money to owners’ bottom lines.
However, the WNBA determined that the move would result in no net revenue since new teams will be out the expansion fee but earn a fractional share of league revenue in the future, while preexisting teams get a portion of the fee but lose a fractional share of future league revenue.
The league’s counter proposal then introduced a system where players would receive in excess of 50% of the revenue after subtracting expenses. It also added an uncapped revenue sharing component, a raise of maximum salaries above $1.3 million and up to nearly $2 million, while average salaries top $530,000 and grow to more than $780,000 over the life of the deal.
Furthermore, the WNBA suggested minimum salaries starting at more than $250,000 in the first year alone, and a salary cap that would be $5 million in the first year and expand with revenue growth in the following years.
But the WNBPA referred to some of the league’s suggestions as a “slap in the face.” Indeed, in mid-December, the players’ union announced that WNBA stars were 98% in favor of authorizing a strike if necessary after 93% of the league voted on the issue.
The two sides currently have until January 9 to reach a deal as things stand.
