(July 28, 2002)

Interesting Development - WNBA Franchise Might Make Money

SACRAMENTO CA (July 28, 2002) Despite franchise-record attendance, the Monarchs struggle with the same problem facing the WNBA: Making a profit.

Enjoying a boost of more than 1,400 in attendance a game, the Monarchs are having their best year at the turnstiles. Sacramento is averaging 9,770 at Arco Arena, boosting the team into the WNBA's top five draws. 

Whether that spike in ticket sales is enough to push the Monarchs into the black is still to be seen. Maloof Sports and Entertainment officials would not speculate on the team's potential profit for this summer. "There are still too many variables," said Maloof spokesperson Sonja Brown. "The season is only half over."

The Maloofs' losses on the Monarchs have been in six figures each year, explained Brown. "But they really look at it as an annual investment."

And the Maloofs remain firmly committed to the franchise, said Danette Leighton, the Monarchs' director of business operations.

"The Maloofs believe in the Monarchs, just like the Kings, and they're in it for the long haul." Team finances are difficult to compare from year to year, she added. "It's not just ticket revenue and arena costs. ... Our expenses vary from year to year. It's hard to simplify it as a win or a loss."

Meanwhile, the league appears to be in a major slump, with average attendance at 8,483 -- down about 600 from last year's average.

Sacramento and the champion Los Angeles Sparks are the only two franchises seeing an increase in ticket sales this summer.

But WNBA president Val Ackerman expects attendance to pick up with the heat of August playoff races, just as it has every season since the league began in 1997. In comparing attendance at the July 15 All-Star break to the same time a year ago, the league average actually rose slightly, less than 1 percent.

"I feel good about where we are," she said.

With estimated annual revenues of $85 million, the six-year-old WNBA has yet to turn a profit and likely won't for at least a few more years. The NBA, which owns its sister league, subsidizes the WNBA's expenses by as much as a reported $8 million annually.

NBA commissioner David Stern dismissed talk that the WNBA is a loser and again pledged longtime support. That and this report from The Sacramento Bee's Debbie Arrington

"(The NBA's commitment) is indefinite, unending," Stern told the Washington Post last week. "It's why we gave it our name."

The WNBA's structure is much different from the NBA's. The women's league pays all player salaries and benefits. According to the WNBA's players union, salaries represent 15-25 percent of their league's revenue. With a rookie minimum of $30,000, the average WNBA salary is about $46,000.

Teams make money from ticket sales and local sponsorships as well as concessions and other sidelights. Each team pays for its travel expenses, non-player costs such as coaches and staff, player housing, advertising and promotion. The franchises also must contribute an undisclosed amount to the league.

"Some teams have made a small profit over the years," said Ackerman. "It can be done."

The Washington Mystics, the league's perennial attendance leader with more than 15,000 a game, are among those few money-makers.

This season, the Monarchs have seen new local sponsors come on board, said Leighton. "And we're not done (selling) yet. That's what's exciting."

The key to WNBA financial success may be TV. While the NBA will get $4.6 billion in its TV deal with ABC, ESPN and Turner, the WNBA's new six-year deal with ABC and ESPN is based on "revenue-sharing."

The WNBA picks up the costs of producing and broadcasting its games, Ackerman explained. "Then, revenue comes out of sponsorship sales. At the league level, our national sponsorship sales are our primary source of revenue," Ackerman asked.

"These are mostly traditional sports marketing companies that have supported men's leagues in the past," Ackerman said. "Now they're supporting women."

[Source: Debbie Arrington, The Sacramento Bee]