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post #1 of 8 (permalink) Old 05-11-2019, 04:27 PM Thread Starter
 
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News On If WWE NXT Is Actually Profitable?

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A new story from The Wrestling Observer Newsletter looked at if the WWE NXT brand makes money as a pro wrestling promotion, noting that there has been some questions on whether or not the brand is profitable.

It was recently reported by the Sports Business Journal that new WWE talents that are signed to developmental contracts are paid on average $50,000 to $150,000 per year, with the average pay for developmental talents being around $80,000 per year. The Observer noted that if you include the main WWE Performance Center in Orlando and the UK Performance Center in London, then the promotion is easily a huge money loser. This isn't necessarily a bad thing as a developmental territory shouldn't be there to make money.

Triple H has said in the past that NXT is profitable, and in a sense it is, but not if you look at the numbers as a separate wrestling company. The live event touring would be profitable as ticket sales for live events and merchandise is enough to cover the costs of travel and lodging. The Observer added that looking at the brand as a separate wrestling company with the roughly $8 million in talent costs factored in with the annual ticket gross of $6.4 million and the $1 million in merchandise, which is likely on the higher end, plus no TV revenue, then the revenue doesn't cover talent salaries, let alone travel, rentals, marketing and promotion, and TV taping costs. The Observer also noted that by those old standards, NXT would be a big money loser.

It was also noted that NXT talents, because they're averaging $80,000 per year, get their hotels paid for on the road, unlike talents on the main roster. The crews also travel together when they're on the Road Trip live event tours outside of Florida, which is also taken care of by the company.

Former WWE Superstar TJP recently appeared on Wrestling Inc's WINCLY Podcast and talked about his deal with the black & yellow brand.

"We all had NXT deals. Mine was pretty big. They offered me two raises before I actually had a deal because they thought I might go somewhere else. I remember getting more than what was normal, but it was still an NXT deal," Perkins said.

Perkins said that after WrestleMania 33 in 2017, everyone switched over to main roster deals, but lamented that he lost many of the things that NXT contracts covered that main roster contracts did not cover.

"If you're on NXT and you're wrestling on the main roster, that's the best-case scenario because you're making a lot extra and getting to keep a lot of it because you don't have to handle rental cars and stuff like that," he revealed before adding that WWE could have done more to help the reputation of the cruiserweights with things like merchandising.

"I did really well at the gate. I think even to this day none of the cruiserweights lucked out as much as what I got initially. I got like six shirts and two action figures and some of the guys are just getting their first shirts and figures now, which sucks. That's something that could have really helped the perception of the cruiserweights in terms of the fans if there was more stuff like that put out."
This is a very interesting case to talk about but I kinda disagree with no TV deal comment as IMO NXT is one of the current biggest draws for the WWE Network specially at this point and If I am correct that really must be helpful in terms of business for both WWE and NXT.

Last edited by Moho Hwoarang; 05-11-2019 at 04:29 PM.
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post #2 of 8 (permalink) Old 05-11-2019, 04:33 PM
 
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Not a surprise, and it’s a reason people need to be careful about saying Triple H is the savior of wrestling.
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post #3 of 8 (permalink) Old 05-11-2019, 06:16 PM
 
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Re: News On If WWE NXT Is Actually Profitable?

It doesn't matter in any way whether NXT is profitable. That isn't what it is there for

The numbers and assumptions they are using to calculate this are incredibly vague. What does "paid on average $50,000-$150,000 per year" mean? That is not an average; it is a range. Where did Sports Business Journal gets its information?
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post #4 of 8 (permalink) Old 05-11-2019, 06:28 PM
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Re: News On If WWE NXT Is Actually Profitable?

So they factor in zero television revenue and say it's a money loser?

That's fucking stupid.

They create content for the WWE Network. The content they produce is some of the most watched content on the WWE Network. They provide content to a pay for subscription service. If NXT was it's own entity they wouldn't be giving away their weekly TV show and Takeovers...
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post #5 of 8 (permalink) Old 05-11-2019, 07:35 PM
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Re: News On If WWE NXT Is Actually Profitable?

The fact that the main roster talents' hotels are not paid for on the road is quite surprising.

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post #6 of 8 (permalink) Old 05-11-2019, 08:21 PM
 
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Quote:
Originally Posted by FITZ View Post
So they factor in zero television revenue and say it's a money loser?

That's fucking stupid.

They create content for the WWE Network. The content they produce is some of the most watched content on the WWE Network. They provide content to a pay for subscription service. If NXT was it's own entity they wouldn't be giving away their weekly TV show and Takeovers...
There’s a cap on the amount of people who could possibly watch it. If it were run without WWE’s aid, it wouldn’t have anywhere near the production values it has, and would have no guarantee of attracting the viewers it needs to get TV. I doubt every person with a subscription watches it, which means it “draws” < 1.5 million.
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post #7 of 8 (permalink) Old 05-11-2019, 09:37 PM
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Re: News On If WWE NXT Is Actually Profitable?

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Originally Posted by The Wood View Post
There’s a cap on the amount of people who could possibly watch it. If it were run without WWE’s aid, it wouldn’t have anywhere near the production values it has, and would have no guarantee of attracting the viewers it needs to get TV. I doubt every person with a subscription watches it, which means it “draws” < 1.5 million.
Yeah no, not everyone with the network watched it. NXT is a weekly, in house show, produced for the WWE Network. You can't determine if it alone is profitable because it's purpose is to keep people subscribed to the Network and attract more people to subscribing to the Network.

If 200,000 people watch every week and all would cancel the Network is WWE got rid of it than NXT is really valuable.

On the flip side if 400,000 people watch every week and none of them would cancel if WWE stopped making it than it's not that valuable.

It's like a Netflix show. We know what the bottom line for Netflix is but it's hard to say what's worth Netflix making more of.

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post #8 of 8 (permalink) Old 05-12-2019, 05:49 AM
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Quote:
Originally Posted by They Call Him Y2J View Post
The fact that the main roster talents' hotels are not paid for on the road is quite surprising.
Main roster legit get nothing paid for (probably just flights). It’s disgusting that a company which requires you to travel for work so much doesn’t pay for a large portion of those costs.

As for the thread, NXT has never made a profit and quite frankly it isn’t there too. It’s effectively a product to help boost the main rosters money making power.
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