I don’t think they’re in danger of going insolvent or anything but hard to see them ever turning a profit
Right, but that's no different than say, college athletics.
The huge college athletics departments are non-profits, so their surplus has to be spent. And since they want to win the recruiting wars, it's easy to re-invest the surplus in capital projects that lure recruits. Like build a brand new $120m locker room or weight room even the current things are totally fine. That's happening in the P4 constantly.
Now, a little further down the college sports hierarchy, you have schools like Gonzaga who don't have huge $150m revenue streams. But they still have $25-$35m in revenue AND they're trying to keep up with those big schools.
So they committed to doing things that help them be competitive and win BEFORE they have the money to pull it off, hoping that what they're committing to will lead to more revenue enabling them to afford it.
That's where the WNBA is.
It's funny, I was actually at a school like that when we definitely couldn't afford charter flights for basketball.
But it was a no brainer to do it. It made us a lot better in a ton of different ways, and it ended up more than paying for itself because upon being challenged to come up with a way to pay for it, an outstanding creative solution was found.