NEW YORK, NY – Amid a surge in popularity driven by a new class of stars, the Women’s National Basketball Association is embarking on a strategic expansion, with new franchises commanding record-high investment fees.

• Surging Franchise Fees – Expansion franchise fees have soared to $50 million for teams like the Golden State Valkyries, a significant increase that signals rising league valuation and investor confidence.
• The “Clark Effect” by the Numbers – The “Caitlin Clark effect” has a measurable financial impact, with the Indiana Fever’s average attendance increasing by 192% and viewership for national broadcasts on ABC up 226% in early 2024.
• Critical Media Rights Deal – The WNBA’s current media deal is worth approximately $60 million annually; the next deal, under negotiation for 2026, is projected to exceed $100 million per year, a vital revenue stream for all teams.

The rapid growth and rising valuations are prompting a critical question for potential investors and the league itself: what are the core financial metrics driving this expansion, and is the current momentum sustainable?

The New Price of Entry: What a $50 Million Franchise Fee Buys

The cost of joining the WNBA is a clear indicator of its rising financial profile. The ownership group of the NBA’s Golden State Warriors paid a reported $50 million for the rights to the Golden State Valkyries, who will begin play in 2025. Similarly, Kilmer Sports Ventures paid a fee in the same range for a new Toronto franchise set to debut in 2026.

This represents a stark increase from previous expansion rounds. For comparison, when the Atlanta Dream joined the league in 2008, the expansion fee was closer to $10 million. The current $50 million price tag reflects not just inflation, but a fundamental recalculation of a WNBA team’s value as an asset. The league plans to grow to 16 teams by 2028, with cities like Philadelphia, Portland, Denver, and Nashville reportedly under consideration. For investors in these potential markets, the $50 million figure now serves as the financial benchmark.

Quantifying the “Caitlin Clark Effect” on League Revenue

While a single player does not define a league, the economic impact of Indiana Fever rookie Caitlin Clark provides a concrete data set for the WNBA’s growth potential. This “Caitlin Clark effect” is visible across ticket sales, viewership, and merchandise.

In the first month of the 2024 season, the Indiana Fever’s average home attendance skyrocketed to 16,571, a 192% increase from their 2023 average. The team surpassed its entire 2023 season attendance in just five home games. This effect extends league-wide, as teams hosting the Fever have seen record crowds, often moving games to larger NBA arenas to accommodate demand.

National television ratings tell a similar story. The WNBA’s Tip-Off weekend on Disney’s ABC network averaged 1.5 million viewers, a 143% increase from the previous year. A June matchup between Clark’s Fever and the Chicago Sky drew an average of 2.25 million viewers on CBS, becoming the most-watched WNBA game on any network in 23 years. This increased visibility is a powerful selling point as the league negotiates its future.

Future Valuations and the Next Media Deal

The ultimate financial health of every WNBA team—both new and established—is heavily tied to the league’s next media rights deal. The current agreements with Disney’s ESPN/ABC, Amazon Prime Video, and Scripps’ ION are collectively worth about $60 million per year and are set to expire after the 2025 season.

WNBA Commissioner Cathy Engelbert has publicly stated a goal for the next deal to be worth “at least double” the current one, putting a potential new agreement north of $120 million annually. A broadcast deal of that size would significantly increase the guaranteed revenue shared among all teams, directly impacting profitability and franchise valuation.

This expected media revenue is central to the logic behind the $50 million expansion fee. It underpins the league’s 2022 capital raise of $75 million, which at the time valued the WNBA and its teams at $1 billion. With viewership and attendance figures consistently breaking records, that valuation is now being put to the test in real-time, with new investors betting on a continued upward trajectory.