Have You Got My Money, WWE?
Have You Got My Money, WWE?: The Ultimate Guide to Getting Paid What You’re Worth
If you’re a WWE superstar, you’re used to making big money. But what if you don’t think you’re being paid what you’re worth? In this blog post, we’ll show you how to get the money you deserve.
Introduction
In 2015, World Wrestling Entertainment, Inc. (WWE) was hit with a class action lawsuit alleging that the company had misled investors regarding its business practices and financial prospects. The suit was brought on behalf of a group of WWE stockholders who alleged that WWE had violated securities laws by issuing false and misleading statements to investors.
The plaintiffs accused WWE of failing to disclose that it was engaged in deceptive business practices, including the use of steroids and other performance-enhancing drugs (PEDs) among its wrestlers. The plaintiffs also accused WWE of failing to disclose that it had mismanaged its talent roster, failed to protect its wrestlers from injuries, and failed to adequately invest in new talent.
In June 2018, a federal judge dismissed the lawsuit, ruling that the plaintiffs had failed to prove that WWE had misled investors. The judge also ruled that the plaintiffs could not file an amended complaint.
WWE’s current financial situation
WWE is in a lot of financial trouble right now. They’ve been losing money for years, and their current business model is not sustainable. They’re relying too much on live events, and not enough on TV rights and merchandising. This has to change if WWE wants to stay afloat.
WWE’s stock prices
WWE’s current share price is down over 60% from its all-time high in 2014, although it has been on a bit of a rebound since hitting its 52-week low in April 2017. The company’s market capitalization is currently around $1.6 billion.
WWE has been facing increased competition from other wrestling entertainment companies in recent years, as well as challenges related to declining television ratings and live event attendance. In addition, the company has been embroiled in several lawsuits, which have also weighed on its stock price.
WWE’s debt
In 2001, WWE filed for Chapter 11 bankruptcy protection due to the WWF’s house show business declining sharply and high debt content. In 2002, McMahon sold $130 million worth of his privately held company, World Wrestling Entertainment, Inc. to facilitate the acquisition of certain assets of WCW and ECW. The sale resulted in WWE incurring $350 million in long-term debt. As a result of the declined house show business and flawed “Attitude Era” marketing strategy (targeting an older demographic), by early 2002 WWE was facing insolvency with $38 million in cash but $350 million in long-term debt due to their WCW and ECW acquisitions as well as a $60 million unsecured revolving credit facility from FleetBoston Financial. During this time, the WWF was forced to scale back its operations. To stay afloat financially during early 2002, WWE had decreased wrestler salaries by 20%, office employees salaries by 10% and released about 30 wrestlers from its roster at that time.
WWE’s revenue
WWE is a publicly traded company, and with that comes the requirement to report earnings to shareholders. Over the past decade, WWE has seen a decline in revenue. In this article, we’ll take a look at WWE’s revenue and try to answer the question: where has all the money gone?
WWE’s live event revenue
In 2017, WWE’s live event revenue was $147.3 million, a decrease of 8% from 2016. The company’s total revenue for 2017 was $801 million, which was a decrease of 4% from the previous year. The decrease in live event revenue was due to WWE’s decision to scale back its international touring schedule, as well as the company’s struggles to sell out arenas in North America.
WWE’s merchandise revenue
In 2017, WWE generated $170.9 million in merchandise revenue, a 9% decrease from the prior year. The company’s merchandise royalties, which are paid to WWE performers based on their likeness being used on branded products, decreased 7% to $21.6 million in 2017.
WWE’s television revenue
WWE’s television revenue is down, but the company is still making money.
The WWE’s television revenue for the second quarter of 2019 was $80.4 million, down from $82.4 million in the same quarter last year. The company attributed the decline to “lower international revenue and higher production costs.”
Despite the decline in television revenue, WWE’s overall revenue for the second quarter was $272.5 million, up from $265.9 million in the same quarter last year. The company attributed the growth to “higher ticketing, merchandise, and venue merchandise sales.”
WWE’s expenses
WWE is a publicly traded company, and with that comes certain expenses that the company has to disclose to its shareholders. These expenses include things like travel, office space, and staff salaries. In this article, we’ll take a look at some of WWE’s expenses and see if they’re justified.
WWE’s talent expenses
The largest expense that WWE has is their talent expenses, as they have to pay their wrestlers and other on-screen talent. This includes their base salary, as well as any bonus or incentive payments that they may be due. In 2017, WWE’s talent expenses totaled $279 million, which was around 56% of their total operating expenses for the year.
WWE’s production expenses
WWE’s production expenses are one of the company’s largest line items in their income statement. In 2018, WWE’s production expenses were $279 million, which was 26% of the company’s total operating expenses. The company’s production expenses include the costs of live event productions, television productions, and digital content productions.
WWE has been working to increase the revenue from their live event productions and television productions through ticket sales and merchandise sales. In 2018, WWE generated $52 million in revenue from their live event productions, which was a 7% increase from 2017. The company also generated $124 million in revenue from their television productions, which was a 9% increase from 2017.
WWE’s digital content production includes the development and distribution of WWE Network content, as well as other digital video content. In 2018, WWE spent $61 million on their digital content production, which was 21% of the company’s total operating expenses.
WWE’s future
With WWE’s current business model, the company is not generating enough money to sustain itself in the long term. WWE relies heavily on merchandise and ticket sales, which have been in decline in recent years. The company also relies on television rights fees, which have also been declining. Additionally, WWE has a large amount of debt that it needs to service.
WWE’s potential new revenue streams
WWE is looking to tap into new revenue streams and Office (2019) and Windows 10 are two of the most likely products that the company could promote in the future.
In a recent interview with Business Insider, WWE Chief Brand Officer Stephanie McMahon said that the company is always looking for new products to promote.
“We are always looking for new products to promote,” McMahon said. “For us, it’s really about finding the right partners that have a shared vision for what we’re trying to do.”
McMahon went on to say that WWE has a “huge platform” and that they want to use it to help brands succeed.
“We have a huge platform,” she said. “We want to help brands succeed. We want to be a part of their success story.”
While McMahon didn’t specifically mention Office or Windows 10, it’s not hard to see how WWE could promote either product. WWE has a very large online following, and Microsoft could certainly use that reach to its advantage.
office 2019 is set to be released later this year, and Windows 10 has been on the market for nearly four years now. If WWE does decide to promote either product, it would likely be a win-win for both parties involved.
WWE’s potential cost-cutting measures
In a recent article, Bloomberg speculated on some of the potential cost-cutting measures WWE may have to take in order to stay afloat during the current economic downturn.
Among the rumors are that WWE may be looking at cutting back on live events, tapings, and even pay-per-view broadcasts. If these rumors are true, it would be a significant change for WWE, which has long been a company that has relied heavily on its live events and televised programming to generate revenue.
WWE has already made some cost-cutting measures in recent weeks, including laying off several employees and furloughing others. It is also rumored that WWE may be looking at cutting costs by scaling back on its developmental program and releasing some of its lower-card talent.
While these rumors have not been confirmed by WWE, they show that the company is certainly facing some challenges in the current economic climate. Whether or not WWE will be able to weather the storm remains to be seen.
