How Much Does WWE Make a Year?
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How much does WWE make in a year? This is a question that many people ask, and it’s one that doesn’t have a simple answer. In this blog post, we’ll take a look at the different revenue streams that WWE has and try to come up with an estimate of how much the company makes in a year.
WWE’s Business Model
WWE is a publicly traded company, and as such, their financials are open to the public. In 2018, their revenue was $265.6 million. Of that, $188.4 million was from live and televised events, $52.5 million was from consumer products, and $24.7 million was from other revenues.
Live events
According to public filings, WWE’s live event business is the largest contributor to its top line. For 2018, WWE reported $175.9 million in revenue from “live events” which includes ticket sales, arena signage and other revenue from its 3,800+ annual events. That’s 47% of the company’s total revenue for the year.
Television
Television has been WWE’s largest source of revenue and profit for several years. The company’s current domestic television agreements are with NBCUniversal (which airs Raw on USA Network) and Fox (which airs SmackDown on Fox Broadcasting Company). Combined, these agreements are worth approximately $265 million per year through 2025. In addition, WWE has multiple international television partners, which collectively generate more than $350 million per year in revenue.
Merchandise
WWE’s merchandise plays a very important role in the company’s business model. WWE generates a large portion of their revenue from the sale of merchandise, with total merchandise sales reaching $268 million in 2016. This was a significant increase from the $250 million in merchandise sales generated in 2015. A large portion of WWE’s merchandise sales come from live event merchandise, which is sold at WWE events held all around the world. At these events, fans can purchase t-shirts, hats, and other memorabilia with their favorite WWE Superstars’ logos on them.
WWE’s Financials
WWE is a publicly traded company, and as such, their financials are available for anyone to look at. In 2018, WWE made a total of $930 million. That might sound like a lot, but it’s actually a decrease from the $975 million they made in 2017.
Revenue
WWE’s revenue for 2019 was $27.5 million. That’s a 7% increase from 2018 and a 28% increase from 2017. WWE’s main sources of revenue are from ticket sales, merchandise, product licensing, and Network subscriptions.
Operating expenses
Operating expenses increased from $650.9 million in 2016 to $676.7 million in 2017 due to an increase in programming, production and talent expenses. The company spent $32.8 million on travel and Entertainment, $15.5 million on certain facilities-related expenses, and $10.0 million on advertising and media buying in 2017.
Net income
Income generated by WWE can be classified into three broad categories: media (television and digital), live and merchandise. In 2015, the company’s net income was $52.0 million. The following year, it more than doubled to $108.0 million. In 2017, it increased again to $129.9 million. The company’s situation improved even further in 2018, when it reported a net income of $186.4 million – an increase of 44% over the previous year.
Looking at WWE’s income from a different perspective, we can see that in 2018, its operating income was $93.9 million – more than double the $41.4 million reported in 2017. The company’s net income, meanwhile, reached $186.4 million last year – an increase of 36% over 2017
WWE is a publicly traded company, and as such, their financials are available for anyone to see. In 2019, WWE made $930 million dollars in revenue. Of that, $27.1 million went to shareholders in the form of dividends. That means that WWE paid out a dividend yield of 2.9%.
Vince McMahon
Vincent Kennedy McMahon (born August 24, 1945) is an American professional wrestling promoter and executive, American football executive, businessman, film producer, actor and sporadic professional wrestler. He is the chairman and CEO of WWE, as well as the founder of Alpha Entertainment, which is the holding company of the professional wrestling promotion. McMahon has also occasionally performed as a wrestling character on TV and in film, most notably as himself in WrestleMania (1982), as “Mr. McMahon” in WWE SmackDown! vs. Raw (2006), and in his starring role in The Wrestler (2008).
The McMahon Family
WWE is a publicly traded company, with majority ownership and control held by Vince McMahon and his family. As of September 2019, McMahon directly owns 41% of WWE’sClass A common stock and 83% of the voting power through a dual-class share structure. The McMahon family’s combined stake in WWE (Class A and Class B shares) represents approximately 32% of the company’s total outstanding shares and 67% of the voting power.
WWE also has a number of other shareholders. These include institutional investors such as The Vanguard Group, BlackRock and State Street Corporation.
WWE’s Impact on the Economy
WWE is a global entertainment company that produces annual revenue of approximately $930 million USD. In addition to their direct economic impact, WWE also supports numerous small businesses and provides employment to over 800 full-time employees.
Job creation
WWE employs over 800 people worldwide, with over 500 of those based in the United States. While the company does have some contracted independent wrestlers, the majority of WWE Superstars are full-time employees. In addition to wrestlers, WWE employs on-air talent, announcers, producers, camera operators, and other behind-the-scenes personnel.
Tax revenue
A 2014 report from the Enfield, Conn. based marketing research company called Plunkett Research estimated that the WWE brought in about $676 million in revenue in 2013. According to The Washington Post, the company was worth an estimated $1.65 billion as of March 2016.
In 2014, a Florida legislature intern wrote a report estimating that the WWE generated $23 million in tax revenue for the state of Florida from 2007 to 2012. The report also said that WrestleMania events generated $22 million in tax revenue for Miami-Dade County, Fla., in those years.
Tourism
In 2012, WWE generated $676 million in economic impact for the state of Florida, $64 million in Texas, $58 million in New York and $57 million in Pennsylvania.
While WWE events are typically thought of as taking place inside an arena, a significant portion of their economic impact is actually derived from the travelers that come into town for the event. This includes hotels, restaurants and other attractions that cater to tourists.
In addition to the economic impact of their live events, WWE also has a significant impact on the tourism industry through their TV programs. According to a study conducted by Plimsoll Publishing, WWE’s flagship program Monday Night RAW generates an additional $62 million in tourism spending each year.
