WNBA commissioner Cathy Engelbert refutes Caitlin Clark salary criticisms as a 'false narrative'.

• The addition of Caitlin Clark to the WNBA is predicted to boost the league's expansion.
• The excitement around her being chosen first overall in the 2024 WNBA Draft earlier this week was dampened by discussions over her WNBA salary and comparisons to rookies in other men's sports.
• At the CNBC Changemakers event in New York on Thursday, WNBA Commissioner Cathy Engelbert stated that focusing solely on a player's salary is misleading.

The 2024 WNBA Draft's first overall pick of Caitlin Clark drew 2.45 million viewers, surpassing the league's previous high by 307%, highlighting the significant influence that the NCAA's all-time leading scorer will have on the WNBA.

The criticism of Clark's pay spread beyond social media to the White House, with President Joe Biden commenting on the issue, stating that "Women in sports continue to push new boundaries and inspire us all. But right now we're seeing that even if you're the best, women are not paid their fair share."

According to the WNBA's collective bargaining agreement, Clark will earn $338,056 over four years, while San Antonio Spurs rookie Victor Wembanyama, the No. 1 pick in last year's NBA draft, signed a $55 million four-year contract.

Clark's expected salary is being misrepresented, just like how executive salaries are often presented for public companies, according to WNBA Commissioner Cathy Engelbert, who spoke at CNBC's Changemakers event on Thursday in New York City.

Engelbert, the first commissioner of the WNBA and a former CEO of Deloitte, stated that during proxy season, a CEO's base pay should not be the only consideration. Instead, bonuses, stock options, and all other relevant factors should be taken into account.

"Caitlin has the potential to earn up to $500,000 in WNBA wages this year, but her base salary is low due to collective bargaining. However, she also has millions of dollars in endorsements, and because she is now a professional, her endorsements are worth more. She has a global platform, not just a U.S. platform, so she will do well financially."

While she was a player at Iowa, Clark had sponsorship deals with companies such as Gatorade and State Farm, which were regulated by the NCAA. Although many of these deals will continue in the WNBA, her growing platform is also helping to expand her portfolio. According to The Athletic, Clark is expected to sign a new deal with Nike worth over $20 million, which will also include a signature sneaker.

Engelbert pointed out that when comparing the salaries of WNBA draftees to those of newly drafted NBA players or other men's leagues, it is important to consider that those leagues have been around for 75 to 120 years, while the NBA is in its 28th season. The NBA generates around $13 billion in revenue, while the WNBA is roughly $200 million.

Engelbert stated that while we have progressed 28 seasons, we recognize that there is still much work to be done, and our success depends on the ecosystem surrounding us.

Engelbert stated that the WNBA's main revenue sources are media rights and sponsorships, while teams' primary revenue driver is ticketing.

The league is currently working on its next media rights deal alongside the NBA, whose exclusive TV rights negotiating window with ESPN and Warner Bros. Discovery is expected to expire Monday without a new deal, opening up the door for other media and tech companies like Amazon, Apple, and Netflix to potentially get involved in the bidding.

Engelbert anticipates that the WNBA's current media rights deal, valued at approximately $60 million annually, will expire in 2025 and be worth twice as much.

"We aim to at least double our rights fees," Engelbert stated on CNBC's "Squawk Box" in April. "The undervaluation of women's sports rights fees has persisted for too long, and this presents a significant opportunity during a time when the media landscape is undergoing significant changes."

Engelbert compared the WNBA to a "growth stock," stating that the league and women's sports are breaking free from the misconception that they are "a charity or the right thing to do to support women."

Engelbert stated, "We are a legitimate sports, media, and entertainment property."