WNBL crisis: All eight clubs unite in rejecting ownership offer as Basketball Australia makes big concessions

Basketball Australia has made major concessions on the future of the the struggling WNBL after all eight clubs rejected its offer for a stake in the revamped league.

All eight WNBL clubs have united in rejecting a Basketball Australia proposal that would have given each a stake in the league.

But Code Sports can reveal BA has softened on its hard line stance on maintaining a majority ownership share in the WNBL and wants a deal with a new investor in place by early July.

Chief executive Matt Scriven said, while he was yet to engage in any formal discussions, BA no longer wanted to run the day-to-day operations of the league and would seek an investor as a potential majority owner to partner with it and the clubs in a new entity that would run the WNBL.

“Over this journey, we’re going through a really rigorous process to ensure we get the best result for the league, the clubs and the players,” Scriven said.

Basketball Australia CEO Matt Scriven revealed BA no longer wanted to run the day-to-day operations of the league. Picture: Getty Images

“We haven’t engaged in any formal conversation with anyone because we’re going through a really transparent process with the clubs.

“We’ve got plenty of people locally and internationally interested in having the conversation.

“We’ll get this done before the start of the next season.”

But first, BA needs a group of frustrated club owners onside.

On March 1, BA issued each club with a non-binding indicative offer of a 2 per cent share in the new collaborative WNBL entity.

The eight clubs, rarely able to unite on key day-to-day league issues due to a variety of conflicting individual needs, joined as one to co-sign a letter rejecting BA’s ‘premature’ proposal.

Flyers captain Rebecca Cole cuts the net after winning the WNBL Championship. Picture: Getty Images

The pointed letter, seen by Code Sports, calls for ‘significant operational changes’ in the flailing WNBL and slams BA for being ‘more focused on the financial health of the league office’ than that of its clubs which, in 2023, lost nearly $5 million combined.

“As clubs, we are unable to generate sufficient revenue in the current model to fund the costs of our team,” the clubs wrote.

“The increasing costs of playing in the WNBL are outpacing revenue and without fundamental changes in the structure of the league, this will continue to be a challenge.

“We need reassurance around limiting the financial obligations of clubs moving forward and increased visibility into how the league will contribute to the financial wellbeing of clubs.

“The current proposal and financial model do not address this.

“We strongly believe a foundational approach that prioritises the financial health and sustainability of the clubs should be the first course of action.

“Strong clubs will create a strong league.”

Aari McDonald was superb for the Lynx this season. Picture: Getty Images

Scriven said he sympathised with clubs but he expected the initial offer to be rejected as part of the negotiating process.

“Some of the most successful leagues around the world, clubs have got skin in the game,” he said.

“If there’s equity in the league, automatically, clubs’ balance sheets are improved because they’ve got value in something that’s bigger.

“A lot of the clubs have put in a lot of money over the years, (the offer) was to look at an opportunity of giving them some position in the league.

“This is exactly why this process is taking place. The league can’t afford to lose money and the clubs can’t afford to lose money anymore.”

He said, despite the mass rejection, “three or four” clubs had since expressed positivity about the offer.

Jordin Canada set the league alight for the Boomers. Picture: Getty Images

Code Sports understands any deal would include safeguards to ensure BA avoids a repeat of the regret felt over the sale of the NBL.

BA was criticised for what happened to the men’s league through the years, but it’s become a juggernaut under Larry Kestelman.

Should the WNBL enjoy a similar trajectory under a new regime, BA would still benefit financially.

Scriven said, under the plans, BA would maintain control of aspects pertaining to the structural integrity of the sport.

“That doesn’t mean that we have to own the majority to do that,” Scriven said.

“We need to be able to get a strategic investor in who is going to be able to grow this thing.

“For us, it’s all around the integrity and structure around how it (the WNBL) fits into the pathways and the models into Opals and governance of the sport. How it stays connected to the community — we don’t want to operate the league.”

Originally published as WNBL crisis: All eight clubs unite in rejecting ownership offer as Basketball Australia makes big concessions