TNA News: TNA Wrestling Filing For Bankruptcy, Does This Open The Door For WWE To Buy?
We all know by now that TNA Wrestling has dominated the wrestling news world. However, that is due to the possible end of the company. Fans current and past are eager to know the future of TNA Wrestling and every bit of news about them is useful. This is literally playing out like a movie where each and every week something bigger happens, and all we’re waiting for is the climax of what will actually occur. It seems we’re getting close to that.
According to The Wrestling Observer, TNA Wrestling will likely be filing bankruptcy soon. The idea is that it will absolve their debt. While there is currently no knowledge of what would happen next, the main creditors would be Billy Corgan, Aroluxe, and The Fight Network. All of which have a stake of some kind in the business.
They may be doing this to back out of investment and get out of the company altogether. This would put TNA on its own again, and it would be interesting to see where the company would go from there considering under bankruptcy they would have several problems when it comes to the future of the business itself.
Dave Meltzer of the Observer claimed that Dixie Carter does not want to look bad in all of this and spoke of how TNA is trying to handle the sale of the business, saying…
“The whole thing is, Dixie is still trying to figure out a way – this is why it hasn’t been sold – I don’t know if it’s to stay in control but the whole thing is, she doesn’t want to look bad publicly.”
The problem with TNA has always been Dixie Carter and her need to have control and literally be the boil on the wrestling world that no one wants around. The talent doesn’t want her around, and the world itself sees how she clearly knows nothing about how to operate a wrestling company. She possibly does not know how to run a company at all, much less one like this.
The real case involving TNA revolves around what type of bankruptcy is filed. The thought is if they file Chapter 11 bankruptcy, they could stay alive and might have a chance to start over. The idea is that it would be tough to do still, but it is far better than the other option which is Chapter 7. The Chapter 7 version would mean the end of the company. The difference between the two is pretty clear. Under Chapter 7, the debtor’s assets are sold off to pay the people owed, which in this case would be Corgan, Aroluxe, etc. However, Chapter 11 allows the debtor to negotiate with the people they owe to alter the terms of the loan without having to sell everything off to pay them.
You may think that clearly TNA would go with Chapter 11 because it allows them to stay alive. TNA may even be trying this as they have already scheduled TV tapings at Universal Studios in Orlando, Florida, for January of 2017. However, TNA owes several people that know of TNA and their history of payment problems and borrowing of money they could not pay back. The business really isn’t making any money either, at least not enough to keep them going for much longer without cutting some people or redoing contracts to help free up space.
Billy Corgan and company see the problems and know they would not get paid most likely. Obviously, TNA would love to go with Chapter 11, but with what money? Would they even profit enough to help pay the creditors off in this case? What would happen if they didn’t pay people like they were supposed to?
All of this makes Chapter 7 seem more likely. That is where WWE comes into play. If TNA has to sell off their company to pay for their debt, it is quite obvious WWE would put in a bid to buy. They would at least want the library. If the promotion has to be sold in full, WWE still might buy it up to know they could get all they wanted, as well as some talent that could be useful for them going forward. The ones they don’t want would be released to do whatever they wanted. We’ll have to see what TNA ends up doing and how it goes for them.
[Featured Image by TNA Wrestling]
