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More proof that NXT is a money loser for WWE!

12K views 106 replies 87 participants last post by  Brock 
#1 ·
Source: Wrestling Observer Newsletter



- The WWE Performance Center in Orlando is said to be way understaffed right now. People who are working there reportedly work endless hours because they have so many tasks to do. NXT is trying to work within a budget but the brand and developmental itself is a money loser for the company.



Pretty much what some of us have been saying like forever. Something the NXT/Indy hardcore fanbase refuses to understand, this smark catering/indy-formula is and always will be money loser. Smark overness and internet buzz are all false indicators of success, they don't make money. Its just like the failed #cancelWWEnetwork campaign, everyone thought it was the end of WWE network but in reality all it takes is about 35K tweets to get something trending on twitter. Not surprisingly WWE announced 1 million subs milestone shortly after too. Triple H has become smark catering idiot.
 
#4 · (Edited)
how exactly do you think nxt is going to be profitable given:

* it cost huge sums of money to build the performance center
* wwe have about 100 full time people down there on contracts from trainers, wrestlers, commentators
* nxt tv and specials are filmed in a 500 seat building where the money made at the gate for those shows is put back into the university in the form of scholarships http://www.wwe.com/shows/wwenxt/full-sail-university-scholarships-2014-26658422
* nxt doesn't have a national tv deal thus no money is coming from that

the nxt live event in san jose in march drew a gate of $200,000 so thats a start and one would assume the recent shows in philly, albany and soon to come in pittsburgh, columbus etc will all draw in the region of $100k a night.

most important nxt needs a tv deal to bring in outside revenue, it probably also needs to ppv deal. its one thing piggybacking the success of nxt off the network (which is vinces brainchild) but hhh has to prove he has what it takes to generate revenue streams for wwe after vince is gone

the setup that nxt has right now (small building for tapings, limited touring schedule and no tv deal) it wouldn't matter if they had rock, austin, hogan and cena in their primes wrestling every week down there it would be a big money loser.
 
#6 ·
how exactly do you think nxt is going to be profitable given:

* it cost huge sums of money to build the performance center
* wwe have about 100 full time people down there on contracts from trainers, wrestlers, commentators on
* nxt tv and specials are filmed in a 500 seat building where the money made at the gate for those shows is put back into the university in the form of scholarships http://www.wwe.com/shows/wwenxt/full-sail-university-scholarships-2014-26658422
* nxt doesn't have a national tv deal thus no money is coming from that

the nxt live event in san jose in march drew a gate of $200,000 so thats a start and one would assume the recent shows in philly, albany and soon to come in pittsburgh, columbus etc will all draw in the region of $100k a night.

most important nxt needs a tv deal to bring in outside revenue, it probably also needs to ppv deal. its one thing piggybacking the success of nxt off the network (which is vinces brainchild) but he has to prove he has what it takes to generate revenue streams for wwe after vince is gone
Exactly this, they have no advertising revenue (I assume that's all credited to WWE Network profits or whole company advertising profits), they have no syndicated TV time, the WWE Performance Center cost a shit ton to build and they make gate receipts very occasionally. The majority of the reason why NXT isn't profitable is down to how WWE handles it.

Seriously, you people will look for any reason to hate on NXT, won't you?
 
#5 ·
Stopping short of not paying the wrestlers at all, I'm not sure how NXT and the Performance Centre are meant to not be money loser. The idea isn't for NXT to be a sustainable brand on it's own right. Any tickets/merchandise NXT sells are a bonus. The whole point of it is to get guys ready for the main roster, so when people who have improved a lot in NXT like Charlotte or Big Cass for example come up to the main roster and ready to go and make the company money, that's when the investment pays off.
 
#10 ·
My thoughts exactly.
Just look at Rollins, Reigns and Ambrose. These guys all started out in WWE's developmental chapter. How much revenue in tickets and merch do you think these three guys alone have managed to sell? What about Daniel Bryan, AJ Lee and Ryback (who I include because as of a few months ago, he was even outselling Cena in merch)? If these talents are handled properly and can get over with the crowd, I assume that they basically pay for themselves.
NXT is a long term investment.
 
#8 ·
NXT is on the network because of the fact its never getting a TV deal. All this supposed buzz, momentum and success and yet they are not shopping around for a lucrative TV deal? That pretty much says what the glorified indy's true worth is. If NXT was good enough to make money, Triple h would've already went for it.
 
#9 ·
It's on the network so people will buy it. The only other reason to watch it is for all the classic content. WWE would rather keep the network subscribers to brag about that than get NXT on TV. They need to make the Network look like a good investment, NXT looks good anyway because they are consistently putting on good shows. And NXT was on TV internationally before now in it's current format before it got so popular so it's not like it's impossible for it to get a TV deal.
 
#14 ·
So your trying to use the business model of the WWE developmental program to prove that wrestling the hardcores like wouldn't work at a mainstream level because the NXT program doesn't make more money than it spends?

NXT is apart of the WWE. It isn't some independent promotion that relies on TV contracts, ippv sales or live event ticket sales to stay afloat.

Did you even think about this before you posted?

NXT is meant to develop stars for the main roster. It just so happens they put on a half decent show most of the time, which is nice to have available on the WWE network.
 
#16 ·
NXT is an investment for its (WWE's) future. WWE is investing money into NXT and its wrestlers in the hopes of creating money-drawing talents when called up to the main roster. NXT isn't there to make money for NXT. It's an investment and a training ground for the stars of tomorrow.

Ever heard the expression "you gotta spend money to make money"? That's what's going on here.
 
#17 · (Edited)
Do you think the youth and development facilitates of FC Barcelona, Real Madrid or FC Bayern Munchen make a profit? No... I can assure you that they cost tons of money. But that doesn't matter because the talent that comes from it is going to be profitable in the future.

That's the sole reason why you have a section Youth and Development....
 
#18 ·
I don't see how it's any different than a pro ball team spending x amount of dollars on a training facility. It's a developmental cost and I would assume WWE is every bit of prepared for the loss involved. It's considered a small price to pay to "draft" your talents and develop them the way YOU want to work YOUR system.

But that said, if HHH is going to parade them around like they are their own fed, and continue airing shows for them, that adds A LOT to their operating costs. They'll have to start becoming a moneymaker or they're going to see that shit get the hook.
 
#19 ·
I'm not saying that catering to the smarks is a profitable way of booking, but the reason that NXT is a money loser has nothing to do with the way in which it is booked. It's a developmental system, it doesn't have a TV deal, it rarely tours, and it's held in a small venue. It's not designed to make money, it's designed to give talent experience.
 
#21 ·
I know how to fix this.

"stop bein such a pussy and end this pussified era lol, remove da midgets and make a casting for 6'5 guys with no experience who look like legit ass-kickers and no pussies like adam rose/tyler breeze shit shit pussy gay shit IT WILL WORK pussies fuck shit"
 
#25 · (Edited)
The cancelwwenetwork worked perfectly, the 1 million new subs was a liethat wwe reported that all the dirtsheets uncovered.

Plus in panic Vince acquiesced and immediately put on several rated TV-MA shows.
Jerry Springer, Swerved, Seth Green's upcoming MA rated animated series, and more coming.

It wasn't until cancelwwenetwork trended like crazy that the TV-MA rated new shows for network were announced in a fucking hurry. It helped slow the cancels.
 
#26 ·
The problem with NXT isn't that it isn't making any money it's that it isn't making any stars. With the exception of the Shield and Wyatt everyone else who has been called up has either flopped or is horribly underutilized. Almost all of the current stars of NXT are bought, experienced talents that the WWE doesn't need NXT or the performance center to get ready for tv so right now NXT and the PC don't serve any purpose other than to get HHH smark love.
 
#27 ·
The problem with NXT isn't that it isn't making any money it's that it isn't making any stars. With the exception of the Shield and Wyatt everyone else who has been called up has either flopped or is horribly underutilized. Almost all of the current stars of NXT are bought, experienced talents that the WWE doesn't need NXT or the performance center to get ready for tv so right now NXT and the PC don't serve any purpose other than to get HHH smark love.
Exactly what I was gonna say. I find it strange that everyone is so quick to say " Hey idiot, it's developmental " and on the other hand, everyone is so quick to say how much Dana sucks. I think that it is obvious that NXT is a brand, a online brand so it is done in a way that can attract online fans. It have PPVs, I mean, I don't remember FCW or OVW having PPVs, T-Shirts for much of their wrestlers, great theme songs or having wrestlers booked as a threat against the face of the company and I'm pretty sure that Sami Zayn or Kevin Owens cost more than guys who aren't indie stars
 
#35 ·
What staff dont they have? they have enough trainers so it is more the maintence of the performance center that they dont have people for?
 
#38 · (Edited)
This story is idiotic. Training (developmental) costs money. It's the same way in every industry.

If every industry killed their "money losing" training programs, they'd go out of business because everyone working there will suck at their job.

They can probably work on some staffing issues, but that doesn't mean they need to change anything else.
 
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