The $75 Million Blunder: How Commissioner Engelbert’s Investment Mistake Now Threatens a WNBA Lockout and Her Job

In the current landscape of American sports, the WNBA is the definition of a hot commodity. With record ratings, sell-out crowds, and a tidal wave of new talent driving unprecedented attention, the league is finally entering the era of mainstream dominance long promised by its supporters. Yet, behind the scenes of this glittering success story, a political and financial crisis is brewing—one that is so severe it’s threatening to derail the league’s momentum, potentially leading to a 2026 lockout and putting Commissioner Cathy Engelbert’s job in serious jeopardy.

The heart of the matter traces back to a single, fateful decision made in 2022, two years before the “Caitlin Clark effect” sent the WNBA into the stratosphere. At the time, Commissioner Engelbert spearheaded a crucial capital raise, selling a 16% stake in the league for $75 million. This deal implied a total league valuation of approximately $468 million. Now, with the benefit of hindsight—and a massive, unexpected surge in popularity—multiple league sources are pointing to this deal as a “costly mistake” that dramatically and damagingly undervalued the WNBA.

 

The Billion-Dollar Question

 

The $468 million figure seems almost laughable today. To understand the scale of the blunder, you only have to look at comparable valuations. A New York Liberty stake recently sold at a $450 million valuation—meaning a single team was valued nearly as highly as the entire league was implied to be just two years prior. Furthermore, the WNBA has recently sold expansion slots for a staggering $250 million each. By any logical estimation drawn from the current marketplace, the WNBA, as an entire entity, should be valued at billions of dollars, not less than half a billion.

This massive gulf between the implied valuation and the league’s actual market worth is what has ignited the current leadership crisis. The commissioner, tasked with steering the league toward financial prosperity, is now being scrutinized for a deal that allegedly left billions of dollars in potential revenue and investment on the table—money that could have secured better infrastructure, marketing, and, most crucially, higher player salaries for years to come.

The timing of the raise makes the error feel even more profound. The 2022 deal happened just before the arrival of a generation-defining talent like Caitlin Clark, whose presence has been instrumental in the current media frenzy. Critics argue that a commissioner with vision should have anticipated or held out for a forthcoming explosion in popularity, or at least structured the deal to reflect future growth potential. Instead, the deal was struck prematurely, cashing out at a discount right before the gold rush began.

 

A Fractured Power Structure

 

The discontent is no longer limited to the players, who have long advocated for a fairer share of the revenue. Now, the unrest has reached the highest echelons of the league. According to reports, Engelbert’s relationships are “frayed,” not only with players but also with key team presidents and owners.

This is a seismic shift in the league’s political landscape. The owners are the very people who employ the commissioner, and their growing dissatisfaction suggests a serious loss of confidence in her leadership. When the individuals who sign the checks and determine the league’s future start campaigning for your exit, survival becomes highly improbable. The resentment stems from the obvious—the lost billions—but it’s compounded by a lack of clarity surrounding the initial investment. Questions are still being raised about precisely how the $75 million received in the capital raise was invested, despite the league’s initial claim that it was intended for “marketing and infrastructure.”

The Shadow of the CBA and a 2026 Lockout

 

The financial blunder also casts a heavy shadow over the upcoming Collective Bargaining Agreement (CBA) negotiations, which are critical to preventing a 2026 season lockout. The latest proposals are trying to bridge the gap, featuring a “super max” salary closer to $850,000 and a veteran minimum hovering around $300,000. While these are increases, they pale in comparison to what the league could potentially afford if it were correctly capitalized.

Worse still, the 2022 capital raise has “muddied” the WNBA’s complex ownership structure, making negotiations even more difficult. The league’s ownership is now carved into three distinct segments: 42% controlled by the 30 NBA owners, 42% controlled by WNBA team owners, and the remaining 16% held by the new capital raise investors.

What complicates this picture further is that some prominent figures—like Ted Leonosis, Herb Simon, and others—hold stakes in all three categories. This overlapping and complicated structure, catalyzed by the 16% stake sale, creates conflicting priorities at the bargaining table. The division among stakeholders only adds friction to the already tense CBA talks, making a unified vision for the league’s future feel increasingly out of reach.

The WNBA is currently experiencing a historic moment of cultural relevance and financial potential. However, the ghost of the $75 million mistake looms large, threatening to undercut the current success with instability and a leadership vacuum. The league is desperately trying to catch up to the value it already possesses, but first, it may need a change in leadership to restore the trust of its most powerful stakeholders and secure the billion-dollar future the players—and the fans—know it deserves.