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Description

This study examines the relationship between market characteristics, player nationality, and compensation in the Women’s National Basketball Association (WNBA), addressing gaps in understanding foreign player wage dynamics. Utilizing a unique dataset of WNBA contracts from 2017 to 2023, we analyze how city demographics influence salaries, particularly for foreign players without NCAA experience. Using weighted least squares (WLS) models, we find that foreign players earn higher wages the higher the share of the white population of the metropolitan area where the team resides. This effect is stronger for foreign players who did not attend U.S. colleges, emphasizing the role of consumer characteristics and preferences in shaping salary structures. Our study provides important implications for team composition and contract negotiation strategies that are particularly relevant to these firms facing restrictions on overall expenses on player compensation. Our future research aims to investigate if signing foreign players is linked to changes in attendance, gate revenue, and team performance.

Publication Date

4-1-2025

Keywords

WNBA, player compensation, foreign athletes, player nationality, salary structure, city demographics, NCAA experience, metropolitan demographics, consumer preferences, sports economics, wage dynamics, weighted least squares, contract negotiation, team composition, professional women’s sports, international players

The Relationship Between Market Characteristics and Players' Salaries in the WNBA

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