Future Growth and Upcoming Season Outlook

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Learn more at evenrealities dot com and see how everyday smart classes keep helpful information inight so you can stay productive and hands free throughout the workday Add the even Ring one or even clip to your even G two order and get ten percent off with code Marketplace. Erealities. com code Marketplace. We have something really special happening right now and I think you might like the economics of all of it When you and five hundred listeners donate to supportu Make Me Smart before this Friday night, you'll unlock twenty five thousand dollars in vital funding. If you've never donated before, it's a great time to invest in the conversations that help all of us make sense of the economy and the world, even when those conversations are difficult or frustrating or confusing. We're here with your support Hel us unlock these vital funds when you donate now at marketplace. org or click the link in the show notes Hello everyone, I'm Kimberly Adams. Wlcome back to Make me Smart, where none of us is as smart as all of us The WNBA's thirtieth season kicks off tomorrow, Friday, may eighth, and it's been a little while since we checked in on women's basketball and the business behind it One major development, the League and Players Association have finally signed this long awaited collective bargaining agreement Annie Costable is here to fill us in on everything we need to know before the season tips off. She covers women's basketball for the athletic, Annie, welcome to the show Hi, Kimberly, thank you for having me So there were months of back and forth between the WNBA and the Players Association leading up to this collective bargaining agreement and you were actually there, literally in the room where it happened to cover their final marathon bargaining session. What was that like? To be honest, when I initially showed up day one to their first meeting, I had no idea. was in store and I think a lot of us can relate to that as journalists. like you show up to something, you're on the job and you're just committed to whatever the story ends up being. And so what was it over twelve hours of bargaining that first night. We learned, okay This is going to continue for days. I had no idea it was going to take eight overall. and It was all the things, Kimberly, it was all the things. Every time I'm asked, I have a different answer because it just it was so many things wrapped into one Oh my gosh, you must have had the most epic nap when that was done. To be honest, I like couldn't my u You know, my adrenaline was so high after it got done that I remember I got back to my apartment in Brooklyn and I was like, oh my God, I can't wait to sleep. And then I got home and I was like, I'm not going be able to sleep like at all And so I think I took about an hour nap and it was such a like rocky because again, your adrenaline is just pumping and and then you know, we're there and we're documenting the moment. But then as soon as the moment' documented, we all know, okay, well now All of our peers are going to be doing these follow ups. There's going to be more information that comes out. like I don't want to sleep through anything. So It definitely wasn't easy to get back into a normal sleep schedule I mean, I really appreciate your sharing that kind of behind the scenes of what it takes to get stories like this. But when it comes to the actual agreement itself, how does this new hard fought agreement actually change the way that players are going to be getting paid Yeah, well, the most obvious is the base salary, right? The suuper Max salary and the league is now one point four million dollars The standard max is roughly one point one nine million dollars. and the league minimum is two hundred seventy thousand dollars, which is more than what the supermax was the year prior. So beyond those base salaries is the compensation model, which will pay players roughly twenty percent of the league's revenue our share the twenty roughly twenty percent of the league's revenue with the players over the life of the deal. So that really is where when everyone talks about transformational because Listen, I'm I'm a self described cynic and I love to poke holes and things. and I think when covering women specifically, we do need to lean into our cynicism just to kind of make sure we're evaluating things Um, not from rose colored glasses, but from a lens in which they need to be covered. And so when it comes to those base salaries There still is room to grow in the sense when you compare them to their male counterparts, of course Get this RevShare model in place, this really is the transformational component because they had never had anything like this before. And so now when they head into negotiations, this is going be the jumping off point. This fight to get this RevShare model in there, they won't have to fight that again You know, the fact that there's such a massive increase to overall compensation reminds me of the Brittney Griner story and the fact that the whole reason she was even in Russia in the first place and ended up being detained there was because they We're not paying these women enough money in the United States to not have to go abroad to work How much do you think that story shaped what went down in this negotiation I mean, I think that story categorically changed everything. notot only in women's sports, but in sports period. I mean, what Brittie Griner went through was There's no describing it. There's no adequate way to describe Yeah. the extent of what she went through Um, all while you know, to your point supplementing her income because she wasn't earning enough and the league that so many call home And so I think That situation, it's not even just that it impacted this CBA negotiation. it changed the landscape of the Lague because evenven when when Brittneany returned to the WMVA, you know the security efforts had to be changed. And it's all these things that when you look at what changed you're like, well, wait, why weren't these things already implemented?? And so there are a lot of ways that the WMBA did not serve its players for a long time and Brittneany Griners you know, detainment, in Russia shhine a light on a lot of those things Aside from the salaries and revenue sharing, what stands out to you as the most important parts of the new agreement Oh my God, so many things. like I love this question because There's so many exciting components to talk about. I think one of them is the payments that are going to be made to retired players you know, there's a lot of players in this league. I mean, all of them that laid the foundation of this league but were paid pennies Another component that I'm really obsessed with is the the minimum salary u for for veterans. So excuse me the max minimum, I should say. So a veteran with ten years of service will be paid three hundred thousand dollars. And what we saw was veterans under this minimum salary in the past who had a certain amount of experience in the league got weeded out of the league because as GMs were trying to build their rosters, they often went the cheaper salary, which resulted in the you you know, the more inexperienced player getting a roster spot will now Pers of a certain year of service, they will still be paid more on that minimum salary, but the hit against the cap. will only be two hundred seventy thousand dollars. Which would discourage the managers and owners from kind of penalizing these older players. Right Right, right. exactly. So that was another component that I was really pumped to see. And then I think, you know, we got to talk about housing because that was one that the players We're really staunch in maintaining. And a lot of people are like, I don't get it. you know, they're adults they make, you know, a salary that The average person, you know, again, you think about now this league minimum is two hundred seventy thousand dollars. Well That'll get you, you know a nice apartment in any city in the country. I live in New York and two hundred seventy thousand dollars will get you a nice spot in Brooklyn Anyways, the reason this is so important is because when you think about cities like New York like Chicago, like the Bay Area This It's not necessarily the money, but it's the attempt to find an apartment for such a limited amount of time, right? Like if you think about New York What renter is going to rent to someone who's like, I'm only going to be here five months. And you're going to be on the road most of the time and you need somebody to manage the place and all that stuff. Yeahah. Right. So I think just maintaining that housing component for the CBA was important. We'll see where it goes next CBA, but I do think that that was important or I know that was important for the players All right, we are going to take a quick break, but we will be right back with more Running a business is hard enough, so why make it harder with a dozen different apps that don't talk to each other? Introducing OdU, the only business software you'll ever need. It's an all in one, fully integrated platform that makes your work easier from CRM, accounting, inventory, e commerce, and more. And the best part, OdU replaces multiple expensive platforms for a fraction of the cost. This is why over thousands of businesses have made the switch. So why not you Try Odoo for free at odoo. com. That's OD oo d. com Okay, let's get real about healthcare for a second. I think we can all agree it doesn't always work the way it should. 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But on the other hand, I recognize that There are differences between the two leagues in terms of audience in terms of revenue and things like that. So But I'm going to ask it anyway. like how do the deals compare? And how do you think people should think about comparing them if at all You know, I think that's a really valid question and it's an important question. and I want to be really careful because U, you know, we are living in a world where people are really struggling to hold two truths at the same time. And so when it comes to this specific conversation The truth is that The NBA has been paying its players a share of revenue that exceeds the W's now share of revenue financially. from the eighties or nineties And I will suggest that everybody go back and read some of the very valuable reporting at that time Um from various outlets, you can research the history of the or excuse me the NBA and find these newspaper articles from that time and the negotiations from that time and the different players who impacted negotiations at that time Anyways, that's true, right? The NBA salary component. salary share has exceeded and the WMBAs and still does The other truth is that the NBA makes more money than the WMBAs. The other truth is that the WMBA has not been a put in a position and women at large have not been put in positions to exceed their male counterparts, right? So we talk about the NBA making more money. Well, that's true. has the WMBA been put in a legitimate position to reach even to meet the NBA where it's at. And you could argue that it hasn't simply by looking at the ownership model of this league And again, people would argue with me and say, well, the WBA would be nothing without the NBA. And That's, you know, you that's a fair point that the NBA found the WMBA, but the ownership model, as it currently stands forty two percent of the league is owned by the NBA. forty two percent of the league is owned by the WMBA owners. and then a sixteen percent stake belongs to outside investors. And so that diluted model under that diluted model How could the Lague ever maximize its earning potential? It's a very interesting conversation. I could talk about it forever. I could listen to it for a long time too. But let's talk about the future in this season. So there's going to be two hundred sixteen games a record broadcast across different networks and streaming platforms this season. What do you think that that means for the league's growth moving forward Well there you go. I'm so glad you're asking this question as the follow up to the previous one because that alone speaks to the league being put in a position to maximize its earning potential when you have games available for viewers, right? And so I think That is going to notot only the league expand its reach, obviously, but players as well because as we know, so much of what players earn, what professional athletes earn is off the court in these brand deals in these partnerships, et cetera. And that happens when fans fall in love with the players that they're seeing on their screen. and then there's a demand to see more of them. And so just by having these games obbviously broadcast in this way. It's going to help fans engage with players that aren't necessarily the Asia Wilsons, the Nfisa Coiers, the Caitlin Clarks, the Paiage Beckers, the Brianna Stewarts, John CQuell Jones, It's going to help them get recognize some of these other players as well You know, speaking of one of those players that you just mentioned, all of the Indiana Fvers games with Caitlin Clark are going to be nationally broadcast this year. How much do you think the Caitlin Clark effect is still driving the league I think it's huge. And I think when Caitlin first came into the league, I was at the Chicago Sunimes at the time and The pushback or the unwillingness to accept Caitln's influence was really incredible. It was it was interesting. and I think it's something you know, people are gonna back on and study one day because you would think She was this tyrant that was coming into the league and not a young star whose game was beloved around The country by her peers and other leagues. like I can recall posts from LeBron James and Steph Curry and Kevin Durant marveling at her game. and ink. You know, there was an unwillingness to accept that. And now we're in a position she's entering year three. She was injured last year and there's just no ignoring it. The demand to see Caitlin is there, no matter what arena she goes to