WWE News: More Major Budget Cuts Looming, Big WrestleMania Names Might Be Too Expensive
On May 16, Vince McMahon and the WWE went on a downward spiral towards the million-dollar status, rather than billion. The company lost a whopping $350 million in one day. For the stock experts out there, the share started at $20 when the market opened, then dropped down to $11 a share. It went down over 40-percent in one day.
The stock fell after the WWE and NBCUniversal signed a new television deal. Investors thought the number should’ve been way higher. So, like any good investor, they sold the stock at its highest peak. WWE expected the deal to be double or triple what their original deal was.
Bad news struck McMahon and the future of the WWE.
Since the doomsday occurred, WWE underwent changes to the front, back and future-programming schedule. For example, WWE Tough Enough’s long-awaited return might be delayed due to the budget cuts. They were supposed to start filming this week.
So far, 10 wrestler were fired and one referee. One of WWE’s head writers, Jay Gibson, was let go from his contract after the “Spring Cleaning” to the superstars occurred. That isn’t the most shocking news yet as WrestleMania 31 could be strongly affected by the major budget cuts McMahon has ordered for.
The Rock previously mentioned in an interview that he would come back if the deal was similar to his others but with WWE pay-per-view being so far down and the change in pay-per-view business, it may not be financially feasible for WWE.
The article goes on to say that the Rock is paid a percentage when he comes back to WWE part-time. His pay is tied into the pay-per-view revenue for his recent WrestleMania matches. That way, Rocky would make more money if the show does very well, rather than just get a guarantee.
He, Brock Lesnar and other huge names for WrestleMania may end up being unaffordable. That would be a major letdown for the entire WWE Universe. Most often, fans come back for WrestleMania to see the part-timers they don’t get to watch during the year.
Part-time wrestlers have become a staple of the “Granddaddy of Them All” in recent years. McMahon must preserve that tradition.
McMahon’s losses aren’t done affecting the product, as more cuts are being ordered. One has to think that the WWE is saving money by not having the Rosebuds production truck or Bad News Barrett’s scissor-lift anymore. On top of that, WWE isn’t hosting their usual SummerSlam Axxess this year. That alone will save the company over $100,000. It still may not be enough for McMahon.
To clear the air, WWE is not in that much trouble. They are still worth over $750,000 million dollars. In no way is the WWE in worse shape than Impact Wrestling. That company is in a whole new world of financial trouble.
The point remain clear that World Wrestling Entertainment needs to start moving money around, in order for the product to remain at its highest ceiling. When the cuts start to become problematic and the ratings drop, McMahon and Triple H will be in major crisis mode.
Luckily for the WWE, the ratings aren’t dropping heavily, if at all. They recently put on one their best Raw’s in quite some time. In fact, it is being said that SummerSlam, as well as Night of Champions will be huge shows to help with the WWE Network’s lack of purchases.
If WWE can put together a rocking summer, the stage will be set for the fourth quarter financial reports. Investors will begin to look at the product and buy again. Right now, WWE is at $11.92 per share. It’s up.05-percent today. It’s gone up.94-cents per share since the huge crash in May.
That’s a start, but WWE needs to step it up or trouble could ensue sooner, rather than later.
[Images via Google and WWE.com]
