The WNBA will add new expansion teams in Cleveland, Detroit and Philadelphia, according to a Monday morning league announcement. All three teams have ties to current NBA ownership groups. The expansion fee is a record $250 million, according to two sources who requested anonymity because the discussions were private.
The $250 million cash expansion fee is by far the largest ever paid for a new team in a U.S. women’s sports league, topping the $110 million that a Denver group paid to join the NWSL this year.
The new additions comes on the heels of an earlier round of expansion. The Golden State Valkyries, which agreed to pay a $50 million expansion fee, began play this season. The Toronto Tempo (also $50 million) and a Portland team ($75 million) are set to join in 2026.
It also comes amid a rapid rise in WNBA team valuations. The average franchise is now worth $269 million, according to Sportico’s most recent numbers, up 180% from just a year ago. In their inaugural season the Valkyries top the list at $500 million, followed by the New York Liberty ($420 million) and the Indiana Fever ($335 million).
In September, the WNBA enlisted Allen & Company to run the expansion process for a 16th franchise. The New York-based boutique investment bank served as the league’s financial advisor when it raised $75 million in strategic capital in 2022. Bids for this round of W expansion were due at the end of January, and the process drew interest from groups both inside the NBA and beyond. More than 10 cities submitted formal bids in advance of the deadline, including groups in Austin, Charlotte, Cleveland, Denver, Detroit, Houston, Kansas City and Nashville.
The WNBA meant to only add a 16th team, but the robust interest spurred the league to add three new franchises.
The NBA owns 42% of the WNBA, with 42% shared by WNBA franchise owners and the other 16% held by the 2022 investor consortium capital raise. As the league expands, neither the NBA’s portion nor the investors’ stake gets diluted, Sportico previously reported.
Expansion comes amid a looming labor fight. WNBA players opted out of the current CBA at the end of 2024, and talks are underway for a new deal to kick in prior to the start of the 2026 season.
“Today’s expansion news reinforces what players, fans, and countless metrics have already proven: the WNBA is thriving and a great investment,” a WNBPA spokesperson told Sportico. “As the league grows, it’s essential we secure a CBA that ensures players fully share in the success they drive.”
The Cleveland team will begin play in 2028, followed by Detroit in 2029 and Philadelphia in 2030. In its announcement, the league said each city was selected based on an analysis of “market viability, committed long-term ownership groups, potential for significant local fan, corporate, media, and city and state support, arena and practice facilities, and community commitment to advancing the sport, among other factors.”
The expansion continue the trend of WNBA teams going to owners with NBA ties. Portland is owned by siblings Lisa Bhathal Merage and Alex Bhathal, who are LPs in the Sacramento Kings. Toronto is owned by NBA board of governors chairman, Larry Tanenbaum, who’s Kilmer Sports owns 25% of the Toronto Raptors. The Golden State Warriors owners own the Valkyries.
The WNBA Cleveland franchise is owned by Cleveland Cavaliers owner Dan Gilbert, who is worth $32 billion, according to Bloomberg, making him one of the richest owners in U.S. pro sports. The team will play at Rocket Arena. Detroit Pistons owner Tom Gores is heading the Detroit W team that will play at Little Caesars Arena. Harris Blitzer Sports & Entertainment (HBSE) will be the lead owner in Philadelphia, with Comcast serving as a minority owner. HBSE and Comcast are building a new arena for their teams, the Philadelphia 76ers and Flyers, to replace the Wells Fargo Center, which is expected to open in 2031 and will also house their WNBA team.
(This story has been updated with additional details throughout.)
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