Women's sports have always had stars who got paid. Mia Hamm, Lisa Leslie and Sheryl Swoopes were the idols from my childhood, and they earned significantly more than their teammates. And while of course their earnings were dwarfed by those of top male talent, the real crime has always been that in women’s sports, talent alone didn’t pay. The award-winning, record-setting, hall-of-famer stars with slightly less name recognition – shout out to Shannon MacMillan and Tina Thompson – earned a fraction of what their contributions deserved.
The new WNBA Collective Bargaining Agreement just made sure that those days are gone.
The WNBA's minimum salary just went from $66,079 to nearing $300,000, and if you are on that roster, you just went from barely getting by to standing on financial freedom's doorstep. This is huge, and there is a lot on the line. If I may, I have some thoughts.
At $66,000, You Were Managing
I spent a decade as a teacher in an expensive city, so I know the $66,000 a year life intimately, and your girl was not thriving. I wasn’t a professional athlete (I still talk to my therapist about that), but the math was the same. Yes, I had a nice place to live, and I paid my bills, but I also racked up credit card debt and avoided looking at my bank accounts.
It wasn’t until I became the queen of side gigs (and started using my favorite anti-budget budgeting hack. More on that later) that I actually felt in control of my finances. Similarly, many WNBA players have spent years supplementing their WNBA income with overseas leagues, Unrivaled, or other offseason work. Not because they wanted to, but because they had to. At $66,000, you are not building, you are staying afloat.
At $300,000, You are Choosing
When your income approaches $300,000, your needs are securely covered, and the surplus is real. This is a whole new territory.
Instead of asking “Can I afford this?”, you’re asking “What do I do with all this?” That is a good problem to have, but it’s also a make-or-break opportunity that your future self will either thank you for or kick you for.
Minding the Gap
When you get a 450% raise in one year, it might be reeeaaal tempting to give your lifestyle a 450% raise as well. And hell, we all know this raise is long overdue and you deserve a treat! But my friends, the gap between income and lifestyle expenses is where millionaires are created and destroyed. At a $300,000 annual salary, you need a structure around spending (note: I did not use the b word) and a system to put money away by default. (also note: I have this structure you seek. Holler at me)
Once you have a system to put money away consistently, then you can engage with the fun part of making decisions that set you up for the long game. That looks different for every player. For some it may be investing in the stock market, or buying property. For others it is supporting family or funding a business idea. The point is that creating a gap between your income and your lifestyle gives you options that did not exist before, and this gap has the power to change the trajectory not just of your own life, but the lives of future generations.
Uncle Sam
As a WNBA player, you are taxed in every state where you play games, not just where your team is based. This is called the jock tax, and it adds a layer of complexity that is unique to professional athletes.
At the minimum salary under the old CBA, the dollar amounts were small enough that the complexity wasn't worth optimizing. At $300,000, working with someone who understands the athlete-specific nuances actually matters.
On top of that, there are retirement and investing strategies that become significantly more powerful at this income level. The question of how much to put away, and in what kind of account, is one of the most impactful decisions you can make in year one of the new CBA.
Finite Window of Opportunity
The new CBA runs through 2032, which is seven years of dramatically better compensation. But your career is still a compressed earning window, and the average lasts between five and seven years.
Good news is that you're young, and intentional choices now have the potential to change your life. There's a reason compound interest gets called the 8th wonder of the world.
Your talent and hard work are finally being compensated. Let’s help you make the most of that.
If you are a WNBA player thinking through what this new financial landscape means for you, or an agent or advisor who works with players, FemGen Wealth specializes in exactly this kind of planning. The financial arc for women athletes is unique, and we built our practice around it.