- WWE’s Business Model
- Saudi Arabia’s Business Model
- The Saudi Arabia-WWE Relationship
- The Future of the Saudi Arabia-WWE Relationship
The WWE is in Saudi Arabia again this week, and some people are wondering why. Here’s a look at the WWE’s relationship with Saudi Arabia and why the WWE continues to go there.
WWE’s Business Model
WWE has a long history of partnering with countries in the Middle East. In fact, some of WWE’s biggest shows have taken place in the region. However, the decision to partner with Saudi Arabia has been a controversial one. WWE has been criticized for doing business with a country that has a poor human rights record. Let’s take a look at the WWE’s business model and why the WWE is in Saudi Arabia.
WWE’s bread and butter has always been its live events. The company relies heavily on ticket and merchandise sales from these events to generate revenue. While WWE broadcasts its flagship shows Raw and SmackDown on TV each week, live events are where the real money is made.
WWE’s live events schedule is now more packed than ever, with the company running shows almost every night of the week. This gives WWE a significant advantage over other sports entertainment companies, who often only run a handful of live events per year.
WWE’s live event revenues have been on the rise in recent years, thanks in part to the company’s aggressive expansion into new markets. WWE now runs shows in countries all over the world, including Saudi Arabia, India, and the United Kingdom.
The WWE also recently launched a new monthly subscription service, WWE Network. This service gives fans access to all of WWE’s pay-per-view events, as well as a vast library of on-demand content. The WWE Network has proven to be a huge success, with over 1 million subscribers as of November 2014.
TV rights are the main source of WWE’s revenue. The company has long-term agreements with USA Network and FOX Sports, which bring in a combined $265 million per year. In 2019, those two deals will bring in $265 million. The company also has a deal with the NBC Sports Network, which will kick in $150 million next year. In addition to these U.S. deals, WWE has agreements in 180 countries that bring in an additional $45 million annually.
The Saudi Arabia deal is a ten-year agreement that is worth $450 million per year. The agreement includes multiple events per year, as well as the right to air WWE programming on Arab TV stations.
The WWE has a global merchandising business that generated approximately $19 million in revenue in 2017. The company’s merchandise is sold in more than 125 countries and territories through a combination of licensees, retailers and e-commerce sites, as well as through the WWE Shop (wwe.com/shop). The merchandise business is comprised of sales of apparel, home goods, toys and other memorabilia. The WWE Network (discussed below) also offers subscribers the option to purchase premium merchandise.
Saudi Arabia’s Business Model
In order to continue growing, the WWE has had to expand its market. One way it has done this is by holding events in Saudi Arabia. This has been a controversial decision, as Saudi Arabia is known for its human rights abuses. However, the WWE has defended its decision, citing the fact that Saudi Arabia is a growing market.
Saudi Arabia has the world’s largest proven reserves of oil and natural gas and is the world’s leading oil exporter. The country’s business model is based on hydrocarbon exports, and oil and gas revenues account for about 90% of Saudi Arabia’s total budget revenues. Saudi Arabia is a founding member of the Organization of the Petroleum Exporting Countries (OPEC), which coordinates the crude oil policies of its member countries.
The WWE is in Saudi Arabia because the Saudi government has a partnership with the WWE. The WWE has a ten-year contract with the Saudis, who are paying the WWE $450 million dollars per year for wresting shows.
Saudi Arabia’s business model is based on oil production, but the country is also working to attract tourists.
The controversy surrounding the WWE’s decision to hold events in Saudi Arabia has brought increased scrutiny to the country’s business model. Saudi Arabia is heavily dependent on oil production, but the country is also working to attract tourists and other forms of foreign investment.
The WWE has come under fire for its decision to hold events in Saudi Arabia, with some critics arguing that the company is legitimizing the country’s human rights abuses. However, WWE officials have defended the decision, arguing that the company is helping to bring positive change to Saudi Arabia.
The Saudi Arabian government has been one of the top customers of the United States government’s arms sales for many years. In 2016, the kingdom was ranked as the third-largest global arms importer, spending an estimated $6.4 billion USD on weapons. The relationship between the two countries dates back to WWII, when American president Franklin D. Roosevelt met with King Abdulaziz ibn Saud aboard the USS Quincy to cement a strategic alliance.
Since then, the Saudis have spent billions of dollars on American weapons, including fighter jets, missiles, and other military hardware. The kingdom is also a major market for British and French weapon manufacturers. In recent years, however, the Saudis have begun to look eastward for their arms needs, inking deals with Russia and China.
The Saudi government’s close relationship with the United States extends beyond arms sales; the kingdom is also a key ally in America’s fight against terrorism. After 9/11, then-Saudi ambassador to the United States Prince Bandar bin Sultan bin Abdulaziz Al Saud pledged his country’s support for America’s “war on terror.” In the years since, Saudi Arabia has cooperated with the United States on counterterrorism efforts, sharing intelligence and working to disrupt terrorist financing networks.
The close relationship between the United States and Saudi Arabia has come under scrutiny in recent years, however, due to concerns about human rights abuses by the Saudi government and the kingdom’s role in fuelling global terrorism.
The Saudi Arabia-WWE Relationship
The WWE has a ten-year partnership with the Saudi government, which has included multiple events in Saudi Arabia. The most recent event, Crown Jewel, caused a lot of controversy due to the Saudis’ human rights record. Despite the criticism, the WWE has continued its partnership with Saudi Arabia. Let’s take a look at why.
The Saudi government’s investment in WWE
The WWE has a ten-year contract with the Saudi government worth $450 million. The deal, which was signed in 2018, stipulates that the WWE will put on two events per year in the country. In return, the Saudi government will invest in WWE’s live programming, digital media, and technology platforms.
The relationship between the WWE and Saudi Arabia has been criticized by human rights organizations and some politicians. In 2019, United States senators called for the WWE to cancel its events in Saudi Arabia following the murder of journalist Jamal Khashoggi. Despite this pressure, the WWE held its first event in Saudi Arabia in April 2019.
The WWE has defended its decision to work with the Saudi government, arguing that its live events provide “hope and excitement” to people in the country. The company has also said that it is using its platform to help promote women’s rights in Saudi Arabia.
WWE’s response to criticism
The WWE has faced criticism for their decision to hold several events in Saudi Arabia, most notably the Crown Jewel event in November 2018. This criticism has been in response to the Saudi government’s alleged involvement in the death of journalist Jamal Khashoggi, as well as their dismal human rights record.
In response to this criticism, WWE has issued statements defending their decision to hold events in Saudi Arabia. They have pointed to the large amount of money that the Saudi government has invested in the company, as well as the fact that WWE events have been used as a tool for ‘positive cultural change’ in the country.
The Future of the Saudi Arabia-WWE Relationship
The WWE has come under fire recently for holding an event in Saudi Arabia. Many people are wondering why the WWE would do business with a country that has such a poor human rights record. However, it is important to understand the WWE’s relationship with Saudi Arabia before passing judgement.
The Saudi government’s changing priorities
Since the Saudi-WWE relationship began in 2019, the Saudi government’s priorities have changed. The murder of journalist Jamal Khashoggi and the country’s involvement in the Yemen war has led to increased scrutiny of Saudi Arabia’s human rights record. The WWE has been criticized for continuing to do business with the Saudi government, and some have called for a boycott of the company.
In recent years, the Saudi government has sought to increase its investment in sports and entertainment. The WWE is just one of many companies that have partnered with the Saudis. Others include the NFL, UFC, and Formula One.
The partnership between the WWE and Saudi Arabia is a ten-year deal worth $450 million. Under the deal, the WWE produces live events in Saudi Arabia several times a year. The most recent event was Crown Jewel 2019, which took place in November 2019.
The future of the WWE-Saudi Arabia relationship is unclear. The growing criticism of the partnership, coupled with the changing priorities of the Saudi government, means that there is a possibility that the deal could be terminated early.
WWE’s changing business model
In the 1980s, the WWE was a regional business selling tickets to live events and broadcasting its matches on cable TV. The company has since grown into a global juggernaut, selling out stadiums around the world and generating more than $1 billion in revenue each year from its media and live event businesses.
The WWE’s shift from a regional to global business model began in the 1990s with the launch of its flagship television show, Monday Night Raw. Raw helped the WWE expand its reach beyond the United States, first by airing on international television networks and then by streaming its programming online. The WWE now reaches more than 180 countries with its television shows, which are available in 30 languages.
The WWE’s global expansion continued in the 2000s with the launch of its wrestles who are legends still today such as John Cena, Brock Lesnar, and The Rock. In addition to these household names, other stars were born in this era including CM Punk and AJ Styles. These wrestles drew in new fans from all over the world, helping the WWE to tap into new markets.
Today, the WWE is once again shifting its business model, this time towards live events. While Raw and Smackdown continue to be popular televised programming, it is live events that generate the biggest revenue for the company. In 2018, live events accounted for nearly 60% of the WWE’s total revenue.
The Saudi Arabia-WWE relationship is part of this new live event focus. The Saudi government has agreed to pay the WWE $450 million over the next ten years to hold two major events each year in Saudi Arabia. These events will be some of the biggest and most lucrative in WWE history.
While some have criticized the Saudi Arabia-WWE relationship due to human rights concerns, the fact remains that wrestling is extremely popular in Saudi Arabia. This deal gives the WWE access to a new market with millions of potential fans. Additionally, it provides a major source of revenue that can be reinvested into improving quality and expanding reach of programming globally