Wrestling Forum banner

41 - 56 of 56 Posts

·
Premium Member
Joined
·
570 Posts
Great news! A healthy WWE is good for the industry except for the haters!

All those moaning about those talent cuts, barely any of them deserved to be employed by WWE except Rusev. They were lucky to be there as the company was hoarding talent to keep them from AEW. There is still so much more dead weight the company could cut. Those released talent got paid for 90days right up unitl this month and the majority of them are already on Impact or AEW. Win - WIn.

Not the end of the world. If no one picks you up after WWE, then the talent obviously isn't worth it and was rightfully released.
 

·
Registered
Joined
·
4,073 Posts
Great news! A healthy WWE is good for the industry except for the haters!

All those moaning about those talent cuts, barely any of them deserved to be employed by WWE except Rusev. They were lucky to be there as the company was hoarding talent to keep them from AEW. There is still so much more dead weight the company could cut. Those released talent got paid for 90days right up unitl this month and the majority of them are already on Impact or AEW. Win - WIn.

Not the end of the world. If no one picks you up after WWE, then the talent obviously isn't worth it and was rightfully released.
It’s healthy on the strength of the two tv deals. Nothing more. If COVID had shut down production and the deals were suspended or cancelled, WWE would be tens of millions in the red.

To quote Heyman, here is a spoiler....every quarterly call over the next four years is going to show very high degrees of profitability. The very high TV deals with FOX and USA guarantee it.
 

·
Registered
Joined
·
651 Posts
WWE should plan on running in the PC through the end of 2020 at minimum, and likely through 2021. It’s the most financially prudent thing for them to do in the short term.
IMO, the long term risk from the current situation and any efforts to sustain it for profit would be a complete loss of their identity. Touring and house shows - especially as they upped production quality in the 80's - were historically not just motivated by business logic but by continuously promoting the organisation and its products. Same with music acts until physical sales fell off a cliff in the 2000's and the big tour became the main source of revenue.

To the casual observer, in terms of original content, at the moment there is little to distinguish WWE from AEW, Impact and indie leagues.
 

·
Registered
Joined
·
11,808 Posts
I know lots of companies have, but also lots of companies chose not to. I am sure some had no choice but to lay off, that's not the case with WWE. They didn't have to. That's the whole point I am trying to make.

I wasn't the one who brought up FB as an example. But since you bring live gate up, UFC firmly chose not to layoff and their profits highly rely on live gate.

Besides the quote from Meltzer literally says: "Lots of factors, but they saved tons in producing at PC and multiple shows together." They dont have the profits from gate but they are also saving tons from production cost standpoint and arena rents.

IDR the exact percentage they quoted, but it was reported that the percentage they saved from releasing talents was minuscule and they would have been profitable regardless.

Clearly they let go of the talent they knew was useless to them at that point in time not because the pandemic was hurting their business, but because they were overpaying alot of these wrestlers that they weren't even using. They chose to release them during the pandemic because they knew there was no competition they could go to. Indies are shut down, NJPW is off limits and AEW/Impact can only hire so many. They even tried to rehire most of the fired wrestlers on a much smaller pay scale.

If thats not a scummy business move IDK what is.
Is it. They sign the contract knowing where they stood. WWE doesn't have to keep anyone on and wrestlers can leave themselves at any time.

95% of wrestlers are hardcore Republicans. This is the type of hyper capitalism they vote for. They vote knowing full well worker rights in the US are by far the lowest in the western world. In saying that everyone released was on a 90 day no compete so everyone got full pay for 90 days.i doubt many other companies gave that when letting staff go.
Still, the lower the WWE numbers go, the more it makes you question why the TV networks wouldn't just look at much cheaper options like MLW, ROH, AEW, iMPACT etc. Or a combination of all of them packaged into 2-3 hour blocks. The sports organisations possess a monopoly WWE doesn't have in the empty arena era. That's not to say WWE isn't sitting on a huge amount of money they can use. But that only stretches so far when nostalgia seems to be their most valuable asset.
None of those have the brand value to advertisers though. It's akin to saying why didn't networks look at xfl before NFL.

Aew are spending 100s of millions and some of biggest names in industry to do about 1/3 raw and SD numbers. Aew isn't cheap either, by my calculations it's costing TNT about the same per hour as an hour of Raw and SD cost USA in 2014-19 when you factor in ad sharing.

WWE programming in 2019 generated $200m in ad revenue for nbcu. It's highly unlikely impact, mlw even aew could come close to that.
It’s healthy on the strength of the two tv deals. Nothing more. If COVID had shut down production and the deals were suspended or cancelled, WWE would be tens of millions in the red.
You could swap WWE there with UFC, NFL, nba, mlb and premier league and say same thing.

Obviously if you take away all sources of revenue a company will struggle.

Second quarter last year WWE generated $49 million in ticket sales and another $7 million in merch sold at those live events. It was zero this year thanks to Covid.
 

·
Registered
Joined
·
651 Posts
None of those have the brand value to advertisers though. It's akin to saying why didn't networks look at xfl before NFL.

Aew are spending 100s of millions and some of biggest names in industry to do about 1/3 raw and SD numbers. Aew isn't cheap either, by my calculations it's costing TNT about the same per hour as an hour of Raw and SD cost USA in 2014-19 when you factor in ad sharing.

WWE programming in 2019 generated $200m in ad revenue for nbcu. It's highly unlikely impact, mlw even aew could come close to that.
Definitely, at this point in time. But what happens in 3 years if they can't turn things around and the weekly viewership (on cable) falls below the 1 million number? It will all depend on how much value NBCU place on their remaining biggest assets: social media followers, network subscribers and licensing deals.
 

·
Registered
Joined
·
6,615 Posts
Record revenue! This is good shit pal!

I miss posting those smilies on this site! Bring them back!!!!
 

·
Registered
Joined
·
4,073 Posts
Is it. They sign the contract knowing where they stood. WWE doesn't have to keep anyone on and wrestlers can leave themselves at any time.

95% of wrestlers are hardcore Republicans. This is the type of hyper capitalism they vote for. They vote knowing full well worker rights in the US are by far the lowest in the western world. In saying that everyone released was on a 90 day no compete so everyone got full pay for 90 days.i doubt many other companies gave that when letting staff go.


None of those have the brand value to advertisers though. It's akin to saying why didn't networks look at xfl before NFL.

Aew are spending 100s of millions and some of biggest names in industry to do about 1/3 raw and SD numbers. Aew isn't cheap either, by my calculations it's costing TNT about the same per hour as an hour of Raw and SD cost USA in 2014-19 when you factor in ad sharing.

WWE programming in 2019 generated $200m in ad revenue for nbcu. It's highly unlikely impact, mlw even aew could come close to that.


You could swap WWE there with UFC, NFL, nba, mlb and premier league and say same thing.

Obviously if you take away all sources of revenue a company will struggle.

Second quarter last year WWE generated $49 million in ticket sales and another $7 million in merch sold at those live events. It was zero this year thanks to Covid.
Absolutely, but prior to COVID I would argue that a number of their traditional fan driven metrics were slumping - house show attendance, Gates, Network subscriptions, and potentially merchandising (not positive on this) were all in decline prior to the outbreak. It's fantastic for the company that they have guaranteed revenue streams in place in the form of the USA and FOX deals, and the Saudi deal provides additional security once these events can resume. But what drives the underlying purpose of the company - their actual fanbase - is in decline. Left unattended amidst joyous celebrations of "record profit" and/or "record revenue", this will leave a hollowed out company going into the second half of this decade. FOX and USA are WWE's primary customers and who they cater to, but these executives are not fans of the company. No matter how much content WWE can produce, eventually it won't matter if only a few hundred thousand people are left to stream it or watch it.
 

·
Registered
Joined
·
370 Posts
Great news! A healthy WWE is good for the industry except for the haters!

All those moaning about those talent cuts, barely any of them deserved to be employed by WWE except Rusev. They were lucky to be there as the company was hoarding talent to keep them from AEW. There is still so much more dead weight the company could cut. Those released talent got paid for 90days right up unitl this month and the majority of them are already on Impact or AEW. Win - WIn.

Not the end of the world. If no one picks you up after WWE, then the talent obviously isn't worth it and was rightfully released.
if the corona virus actually helped this company cut expenses than it shows how truly piss poor mismanaged this company's business really was.
 

·
Used to be a Dreamer, Dreamin' of a Fire
Joined
·
6,413 Posts
Duh. They cut everybody and they're running shows off their own property. No shit profit went up. Costs went down like crazy and their TV CONTRACTS haven't changed

But with the abysmal ratings the chickens gonna come home to roost eventually. Those contracts are gonna look veeeeeeeerrrrryyy different when they come up as evidenced by the fact that Vince was grilled by investors over the ratings and still had no answers

The TV execs hold the keys to the kingdom. They're paying Vince the same amount of money but getting much less in return in the way of ratings. Anyone who doesn't think that's gonna have consequences isn't good at analysis
 

·
Registered
Joined
·
5,843 Posts
that's what happens when your stuck with a stale family orientated product, you can't be edgy, you can't push the boundaries without pissing execs and the sponsors off plus with the added bonus the company is run by a stubborn old cunt.

i'm watching wwf tv from 94-96 and the crowd was fucking hot yet the wrestling on offer was abysmal compared to the in ring product of today.

when vince finally buggers off then you can pretty much guarantee you'll see a different product
 

·
Registered
Joined
·
651 Posts
that's what happens when your stuck with a stale family orientated product, you can't be edgy, you can't push the boundaries without pissing execs and the sponsors off plus with the added bonus the company is run by a stubborn old cunt.

i'm watching wwf tv from 94-96 and the crowd was fucking hot yet the wrestling on offer was abysmal compared to the in ring product of today.

when vince finally buggers off then you can pretty much guarantee you'll see a different product
I don't think it makes a difference unless he's too far gone to resist change when they are in serious trouble i.e losing money.

They'll actually start trying when interest is so low that television networks consider them overvalued and toy manufacturers and video game developers show no interest. If that happens the stock will collapse. Then they will be forced to produce actually exciting content that isn't played for laughs.
 

·
The optimistic Asuka fan
Joined
·
3,385 Posts
Duh. They cut everybody and they're running shows off their own property. No shit profit went up. Costs went down like crazy and their TV CONTRACTS haven't changed

But with the abysmal ratings the chickens gonna come home to roost eventually. Those contracts are gonna look veeeeeeeerrrrryyy different when they come up as evidenced by the fact that Vince was grilled by investors over the ratings and still had no answers
But .... what?? Huh?
So far, obviously WWE was able to sort out good TV contracts. Sorry, BUT I am not hoping for the C crisis going on forever, including fake crowd and no live show promotion, just for WWE getting worse TV contracts.
There are more important things in life!
 

·
Registered
Joined
·
641 Posts
It’s healthy on the strength of the two tv deals. Nothing more. If COVID had shut down production and the deals were suspended or cancelled, WWE would be tens of millions in the red.

To quote Heyman, here is a spoiler....every quarterly call over the next four years is going to show very high degrees of profitability. The very high TV deals with FOX and USA guarantee it.
If any organization loses it's sources of revenue, it's screwed. They would be doing something different if those deals had not happened.

WWE were very lucky that their tv contracts came up for renewal when Amazon/FB/everyone was looking for content and FOMO by the tv companies got the price up. WWE are probably very good at negotiating too and it's worked great for them.

They can't count on that luck twice and it looks like VKM has realized this and looking to build stars. The clock's ticking and they have about 2 years to do it. Those larger than life characters need time.

Revenue-wise, nothing comes close to the tv deals. I'm surprised the network has held up as well as it has. It's almost forgotten by the company now all the tv cash is flowing. Q3's will be interesting.
 

·
Registered
Joined
·
8,751 Posts
WWE were very lucky that their tv contracts came up for renewal when Amazon/FB/everyone was looking for content and FOMO by the tv companies got the price up. WWE are probably very good at negotiating too and it's worked great for them.
The WWE also showed an unusual bump in their TV ratings year over year during early 2018. It was the first Wrestlemania season in years that actually showed an upward trend--exactly the time when they were negotiating the new TV deals. Things were looking up.

Of course, regression to the mean took place after Wrestlemania 34 and the ratings went back to their traditional year over year declines in May of 2018.
 
41 - 56 of 56 Posts
Top