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Is WWE in a bad shape financially?

5K views 50 replies 35 participants last post by  Mifune Jackson 
#1 ·
Everyone keep talking about the fall of wwe and how the business is becoming no profitable. What's going on, Is the end near?
 
#36 ·
Not necessarily. They're certainly not meeting the financial projections they had for the Network, but they're relatively secure.

What's sad is how much talent they had to let go in order to insure financial security.

A big problem with WWE is they do not invest in their company themselves for the long term. It's worked for now, but as their older, dependable talent get older and some pass away, they're going to run out of those resources and have no star power to replace them.

They're stuck in the past, both in ideals, talent, and how they utilize what they have.

It's not so much they're failing as a company, just that it will be incredibly easy for them to in the future and in the now, they're not making as much as they could be.
 
#37 ·
WWE won't be around forever, but it should last another 5-10 year's.
 
#40 ·
Did the OP just say "is the end near" for the WWE?

OP, they just rented out an 100,000 seater stadium for next year's Wrestlemania. That probably means that the end isn't near.
 
#47 ·
They are in bad shape in that they are no where near where a business wants to be.

The stock price tanked last year and lost 2/3 of its value. The company did not earn a profit, never mind meeting growth figures.

The stock is advised to sell, and has negative earning potential per share. It looks less and less like a legitimate company and starting to resemble the old carny act it used to be regarded as.

With that being said they aren't going anywhere yet. They have millions in cash and assets. And if you take a look at TNA, companies can limp a long for a while.

The big problem is when a company gets to this situation, change and restructuring is called for, you'll usually see a shake up in top management, and a prominent CEO will step down. None of that is taking place and WWE appears to be full steam ahead in the same way it's been going. This above anything else is what points to looming disaster.

Tldr, WWE is losing money, they have enough to stay in business, but aren't changing business practices enough to make anyone believe it won't continue to lose money.
 
#48 ·
They are in bad shape in that they are no where near where a business wants to be.

The stock price tanked last year and lost 2/3 of its value. The company did not earn a profit, never mind meeting growth figures.

The stock is advised to sell, and has negative earning potential per share. It looks less and less like a legitimate company and starting to resemble the old carny act it used to be regarded as.

With that being said they aren't going anywhere yet. They have millions in cash and assets. And if you take a look at TNA, companies can limp a long for a while.

The big problem is when a company gets to this situation, change and restructuring is called for, you'll usually see a shake up in top management, and a prominent CEO will step down. None of that is taking place and WWE appears to be full steam ahead in the same way it's been going. This above anything else is what points to looming disaster.

Tldr, WWE is losing money, they have enough to stay in business, but aren't changing business practices enough to make anyone believe it won't continue to lose money.
All of that can be tied to the Network. The stock price rose and dropped due to speculation off the network. The lack of profit is due to the start off costs of the network.
 
#49 ·
They aren't going out of business and even if it ever got quite that bad the company would still be around in some shape or form regardless, investors would just give Vince the boot.

PPV buys have been slowly going down overall the past 10 years or so and right now the WWE Network release was somewhat botched and isn't doing as well as hoped. I think they've lost quite a bit recently though I think a rocky start was expected. So far as I know I'm not sure I'd say they're in bad shape, but... it isn't in good shape either.
 
#50 ·
Their overall product is always going to dictate their finances.

Although the cash flow is still up there, unless they don't improve their product, finances aren't gonna go up anymore as they have reached all the markets available to them with the network.

I often say that they need new stars in the ring... well they definitaly need new stars behind the office desks too. Vince is getting out of touch but we all know he's never gonna step down and he will eventually bring the ship down with him like Al Davis did with the Oakland Raiders.
 
#51 ·
I don't know enough to really comment, but keep in mind that stock price was tanking in 2014 from an artificially inflated bubble after they announced the Network (which also happened just a few months earlier). They didn't really lose all of that money. It was all people speculating in case the Network was a hit right away, and it wasn't.

If they pass the 1.5 million mark this year, that stock will continue to go up because it's going to be making the money it should have been making early on.
 
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