How do WNBA Rookie Contracts work?

With the 2024 WNBA Draft approaching rapidly and the rise of NIL taking care of many collegiate athletes, these female athletes are not adding too much onto their payroll once they become WNBA rookies. It's crazy to say, but as a female athlete, they could possibly make more in college than pro.

Rookie base salaries are not guaranteed, so the players are only paid for the portion of the season they are on the roster. The length of contracts for drafted rookies is fully specified, while undrafted rookies may have a contract length of one or two years.

2024 WNBA Rookie Scale

For this year's upcoming draft it is projected that rookies drafted picks No. 1-4 will earn $76,535. Picks No. 5-8 will make $73,439 and picks No. 9-12 are at $70,344.

Players in the second round can see $67,249, third round $64,154, and undrafted can make $65,154.

Across all categories, players will receive a two percent increase in base salary between their first and second seasons. First-round and second-round picks are scheduled to receive a 10 percent increase in their third season and a 13.64 percent increase in their fourth season. Third-round picks are scheduled to receive a five percent increase in their third season and a 14.29 percent increase in their fourth season.

How WNBA contracts are offered

WNBA teams need to offer a rookie scale contract to a draft pick to gain their rights to a "required tender," which is a contract that is contingent on a physical exam.

Teams need to make this tender within seven days of the draft, and if they do offer a contract within those days, then the player cannot negotiate with any other team. However, if the team does not, then the player becomes an unrestricted free agent and can sign a rookie scale contract with any team. But that is rare.

For undrafted players, they will then become unrestricted free agents who sign rookie scale contracts instead of veteran contracts. They are free to negotiate with multiple teams any time after the draft is over.

How WNBA rookie contracts are extended

Players who are drafted can have their contracts extended if the team has already exercised the fourth-year option in the rookie contract, which would happen before the player's third season in the league.

The player would need to sign an extension before May 15 of the final team-option year of their rookie contract. Extensions of rookie scale contracts can be for up to three years or through the end of the seventh year of their WNBA career.

Undrafted players cannot have their rookie contracts extended.

How are WNBA contracts different from the NBA?

The top salaries for WNBA players are less than the minimum salary of about $1,119,563 for NBA players for different reasons. That is from the profit margins for each league driven by media rights.

But the NBA's revenues topped $10 billion for the first time back in 2022 and are expected to be worth more in a few years. The WNBA makes about $60 million a year in broadcast deals, and its season is also half as long as the NBA season.

Now comparing NBA rookies is where the most significant difference is seen. The top pick in the 2024 NBA Draft will make about $10.5 million this upcoming season, according to RealGM. Salaries for each player drafted after the first pick will make progressively less until you get to the 30th pick in the draft, who will make about $2 million annually.

What does this mean for Caitlin Clark and Angel Reese?

Some of the top players in this year's upcoming draft, like Caitlin Clark and Angel Reese, already became millionaires during their college careers. Going to the WNBA doesn't mean a massive pay cut, it does not add much more to their professional contracts.

The NIL deals for women's basketball players are expected to carry over into their professional careers.

These players can still earn hundreds of thousands of dollars in the league and team marketing deals, as well as other bonuses. However, comparing it to their other successes through NIL, it is not a large difference for some of these athletes.