JoePgh
Cranky pants and wise acre
- Joined
- Aug 30, 2011
- Messages
- 3,784
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Thank you, KnightBridgeAZ, for compiling these facts and saving me a couple of hours of research. I knew that the CT Sun were owned by the casino (why else would the casino make its own on-premises arena available to them?), but it really struck me about a year ago when I read an article that mentioned that the Sun players are considered for legal purposes to be casino employees, and as such they are not permitted (on pain of immediate dismissal) to gamble in the casino. I guess they can go to Foxwoods if they simply must hit the slot machines.
Regarding the statement that "profitability will always be a problem for the league", that is true but misleading. No WNBA team will ever be a prize investment for anyone whose goal is to generate ROI from basketball operations. But as I indicated above, a gaming business like Mohegan Sun has valid business reasons to incur the rather insignificant expense of subsidizing a women's basketball team. If nothing else, it makes their image more "family-friendly" and gives parents a reason to bring school-age children to the casino.
And if you are a private individual (probably female) with a net worth of $100 million or so, you are not going to worry much about losing a few hundred thousand dollars a year on a WNBA team that you own. If you happen to believe in women's sports as a source of economic opportunity for women and as a source of role models for girls and young women, you will consider it money very well spent. And it will get you lots of kudos from your peer group as well.
So as long as the losses are kept in a reasonable range (which will be the case as long as the salaries are so strictly limited), there will be people willing to accept the financial cost of ownership. And as long as there are young players to fill the ranks, the league will produce an excellent basketball product even if older stars occasionally take a year off to recuperate. Bottom line: the WNBA is doing well enough to last in its present state for the foreseeable future, i.e., it has achieved a financial equilibrium condition. A new NBA commissioner probably can't kill it (and would be pilloried in the press for no significant financial gain if he were to attempt to do so).
Regarding the statement that "profitability will always be a problem for the league", that is true but misleading. No WNBA team will ever be a prize investment for anyone whose goal is to generate ROI from basketball operations. But as I indicated above, a gaming business like Mohegan Sun has valid business reasons to incur the rather insignificant expense of subsidizing a women's basketball team. If nothing else, it makes their image more "family-friendly" and gives parents a reason to bring school-age children to the casino.
And if you are a private individual (probably female) with a net worth of $100 million or so, you are not going to worry much about losing a few hundred thousand dollars a year on a WNBA team that you own. If you happen to believe in women's sports as a source of economic opportunity for women and as a source of role models for girls and young women, you will consider it money very well spent. And it will get you lots of kudos from your peer group as well.
So as long as the losses are kept in a reasonable range (which will be the case as long as the salaries are so strictly limited), there will be people willing to accept the financial cost of ownership. And as long as there are young players to fill the ranks, the league will produce an excellent basketball product even if older stars occasionally take a year off to recuperate. Bottom line: the WNBA is doing well enough to last in its present state for the foreseeable future, i.e., it has achieved a financial equilibrium condition. A new NBA commissioner probably can't kill it (and would be pilloried in the press for no significant financial gain if he were to attempt to do so).