Debunking Misconceptions Surrounding Caitlin Clark's Salary Discrepancy

Caitlin Clark, who recently made history by becoming the leading scorer in NCAA basketball and being selected as the first pick in the WNBA**** draft, will earn a salary of $76,535 this year. In comparison, the top pick in the NBA will make a whopping $10.5 million.

The significant difference between Clark's salary and that of top NBA players has brought attention to the issue of pay disparities between Women's National Basketball Association players and their male counterparts in the NBA. The highest-paid WNBA**** player received a salary of $242,000, while the minimum salary for NBA players is over a million dollars in 2023.

Clark, a standout player at the University of Iowa, along with other college stars who have gone pro like LSU's Angel Reese, brought women's college basketball to new heights. Clark's final season in college drew record-breaking TV viewership and sold-out arena crowds across the country.

Not only was Clark the top pick in the draft, she was also incredibly popular. Tickets to her NCAA tournament Final Four game this year were more expensive than tickets to a men's Final Four game. At just 22 years old, she holds the record for the most points scored in NCAA Division I history, for both men and women.

Apr 1, 2024; Albany, NY, USA; Iowa Hawkeyes guard Caitlin Clark (22) controls the ball against LSU Lady Tigers forward Angel Reese (10) in the third quarter in the finals of the Albany Regional in the 2024 NCAA Tournament at MVP Arena.

Caitlin Clark (22) from Iowa Hawkeyes was seen dribbling the ball while playing against Angel Reese (10) from LSU Lady Tigers in the third quarter of the finals held at MVP Arena during the 2024 NCAA Tournament in Albany, NY, USA on April 1st.

Gregory Fisher/USA Today Sports/Reuters

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Caitlin Clark is set to join the WNBA**** at a crucial time for the league.

The WNBA**** players are not demanding to be paid the same amount as NBA players. They understand that the WNBA**** has less revenue to distribute and is a newer league without the history of long-standing negotiations and established worker protections and salaries.

"They just want to be treated fairly," says Terri Jackson, head of the WNBA**** Players’ Association, the union representing the players. "WNBA**** players want to feel valued and properly compensated like other professionals."

Women in the WNBA**** receive approximately 10% of the league's total revenue, according to David Berri, an economics professor at Southern Utah University and author of a forthcoming book on women in sports. On the other hand, the NBA collective bargaining agreement ensures that players receive 50% of the revenue.

"We are not looking to earn the same as the male players. We simply want to be compensated based on the same percentage of revenue," expressed Kelsey Plum, a standout player for the Las Vegas Aces, during a 2022 interview.

Even the best players in the WNBA**** sometimes take risks by playing in overseas leagues during the off-season. In these leagues, there are no restrictions on salaries, and players can earn up to two or three times more than their US salary.

One example is Brittney Griner, the star center for the Phoenix Mercury. In 2022, she was planning to play in Russia during the WNBA****'s off-season to earn extra income. Unfortunately, Griner was mistakenly detained in Russia for 10 months. She was eventually released as part of a prisoner exchange. (The WNBA**** is working to keep its players in the US during the off-season to avoid such situations.)

Player contracts in the NBA and WNBA**** are determined by the collective bargaining agreements between the leagues and the players' union. These agreements establish an annual salary cap for teams, which is $136 million in the NBA and $1.5 million in the WNBA****.

In the NBA, there is a "soft salary cap" which allows for various exceptions that enable players to earn additional income. On the other hand, the WNBA**** operates with a hard salary cap, which means there are limited exceptions available.

A WNBA**** spokesperson mentioned that Clark could earn over $500,000 in total compensation, which includes money from player marketing agreements with the league and team deals.

However, Jackson pointed out that including compensation from these deals "blurs the lines" since only a few players are able to qualify for them.

South Carolina Gamecocks center Kamilla Cardoso was seen driving past LSU Lady Tigers forward Angel Reese in the first half at Colonial Life Arena on February 12, 2023, in Columbia, South Carolina.

South Carolina Gamecocks center Kamilla Cardoso drives past LSU Lady Tigers forward Angel Reese in the first half at Colonial Life Arena on February 12, 2023, in Columbia, South Carolina.

Jeff Blake/USA Today Network

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Angel Reese and Kamilla Cardoso, who have been rivals throughout their careers, will now be playing on the same team in the WNBA****.

In terms of salaries, WNBA**** players have seen improvements since 2020 when they signed a new collective bargaining agreement with the league. However, the significant wage gap between the WNBA**** and the NBA is due to economic disparities, years of limited investment in the WNBA****, and the historical lack of bargaining power that women have had when negotiating contracts and other benefits with the league.

"When discussing pay equity, it involves considering the resources, level of investment, strategic plan, and intentional growth of the WNBA****," Jackson explained. "This model has been lacking necessary resources for a significant period of time."

In comparison, the NBA, which is 50 years older than the WNBA****, has over double the number of teams and games per season, and generates approximately $10 billion in revenue annually, while the WNBA**** reportedly brings in around $200 million.

The WNBA**** has historically received lower payments from broadcasters and advertisers compared to the NBA. This year, the NBA is earning $2.8 billion from national media deals, while the WNBA**** is only receiving around $65 million for its media rights.

Alicia Jessop, an associate professor of sport administration at Pepperdine University, pointed out that it's not a fair comparison between the two leagues. She explained that the difference in payments comes down to where each league is in its business cycle.

Sharing the revenue pie

Because it’s a smaller and younger league, women’s players have had less bargaining power with team owners over their pay than men.

NBA players receive 50% of total NBA revenue, while the WNBA**** has to reach a specific revenue threshold each year before revenue sharing starts. This has limited the salaries of women players.

David Berri pointed out, "That's a league decision. They could choose to do things differently." However, the players have been unable to change the situation.

Creating a new league with new teams is not something that can be done overnight. It takes time for people to develop a strong connection to professional sports teams.

According to him, if the WNBA**** were to pay 50% of its revenue to players, the top players could potentially earn over $3 million in salary.

Pivotal moment for the WNBA****

The WNBA**** launched in 1997, spearheaded by longtime former NBA commissioner David Stern, who believed creating a women’s league would grow the game overall.

But some critics say the NBA could have done more to benefit the WNBA****.

“The NBA is bad at negotiating for women. The women end up being throw-ins to their deals,” said Berri.

Serena Williams has become a prolific investor.

Serena Williams has become a prolific investor.

CNN

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Serena Williams expressed her interest in owning a WNBA**** team, stating that she would be 'super interested'.

WNBA**** players are calling for increased investment from the NBA, broadcasters, and corporate partners to support the league. It is important that the WNBA**** is not treated as secondary to the men's league, according to Jackson.

WNBA**** player salaries may increase in the future due to growing interest from fans and advertisers. The league recently experienced its most-watched regular season in 21 years, with game attendance reaching its highest level in 13 years.

According to WNBA**** commissioner Cathy Engelbert, the next few years will be crucial in setting up the league for success over the next 30-40 years.

The league is aiming to grow to 16 teams by 2028. This expansion is part of their plan to negotiate new media rights, which are projected to bring in millions of dollars in additional revenue and give more exposure to star players and teams. The WNBA**** is looking to secure up to $100 million per season from broadcast partners in their upcoming deals.

The players' union is expected to opt out of their current agreement by the end of the 2025 season. By securing a new media rights agreement and a fresh collective bargaining agreement, player salaries could see an increase and benefits could be expanded - similar to what happened after the players opted out of the previous agreement in 2018.

Breanna Stewart of the New York Liberty and vice president of the players’ union recently mentioned in an interview that if games are attracting 18 million viewers, it's time to raise the bar. This means salaries and benefits for players will also increase.

Editor's P/S:

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