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With wrestling ratings and TV rights talk basically a daily occurence ’round these parts, I have wanted to get a different take on the subject from someone outside the wrestling media bubble that still understands the product but doesn’t have a lean one way or another.
I found one.
On this week’s Punch-Out, I talk to New York Post sports media & entertainment reporter and wrestling fan Ryan Glasspiegel.
Ryan and I talked for 30 minutes about what his wrestling intake is like and how he has viewed the current landscape of both WWE and AEW through his reporting lens.
We talk about whether ratings or demos matter to advertisers and networks, if he thinks WWE will sell the company, if AEW needs more suitors and how streaming services may get involved.
Join us for this free and fascinating conversation from someone outside our intense wrestling media bubble.
Wrestling Observer Live with Bryan Alvarez and Mike Sempervive is back with tons to talk about including WWE finances, NXT 2.0 tonight, the highs and lows of RAW Monday, and tons more. A fun show as always so check it out~!
The following was updated at 10 AM Eastern Tuesday.
WWE announced 2022 second quarter revenues of $328+ million, an increase of over $63 million from the same time period in 2021.
Additionally, the “substantially complete” investigation into now-former chairman and CEO Vince McMahon, including how much they anticipate the investigation to cost, was also addressed.
The numbers were released in a 10-Q filing Monday night. followed by a Tuesday morning call.
The reason for the Q2 call being delayed is the changes the company is needing to make to past financial statements due to unrecorded expenses by McMahon.
In the filing, they addressed the recent investigation:
As previously announced, a Special Committee of independent members of the Company’s Board of Directors (the “Special Committee”) was formed to investigate alleged misconduct by the Company’s former Chairman and Chief Executive Officer, Vincent K. McMahon. Mr. McMahon resigned from all positions held with the Company on July 22, 2022 but remains a stockholder with a controlling interest. The Company has received, and may receive in the future, regulatory, investigative and enforcement inquiries, subpoenas or demands arising from, related to, or in connection with these matters. The Special Committee investigation is substantially complete. In addition to the foregoing, from time to time we become a party to other lawsuits and claims. By its nature, the outcome of litigation is not known, but the Company does not currently expect this ordinary course litigation to have a material adverse effect on our financial condition, results of operations or liquidity.
Because of the investigation, WWE has suspended its stock repurchase program.
As noted in the report, they spent $1.7 million in Q2 in general/admin expenses for the investigation and “currently anticipate spending approximately $10 million during the remainder of the year related to this investigation,” noting the related costs could exceed that.
Thus far, McMahon paid $2.2 million this year and $1.2 million during the first six months of 2021. He has paid, or will pay, the total of $19.6 million of unrecorded expenses.
Inside The Numbers
Net media revenue was up to $328+ million, up from last year’s $265 million in Q2. Live event revenue ($41+ million up from $9.2 million) and consumer products ($44 million up from $22 million) were the primary drivers. Of that, North American ticket sales were at $34.9 million, up from last year’s $6.6 million when they held just WrestleMania in Tampa, Florida.
Total live attendance for the quarter was 400,300 over 55 events — up from 40,400 last year (two nights of WrestleMania in Tampa). Average North American attendance was 6800 while four international events drew an average of 6550. Live event venue merchandise did $7.3 million.
The release of WWE 2K22 brought in $5.6 million in licensing revenue while trading cards and collectibles helped generate $3.1 million.
WWE will continue to spend on content creation, noting that in the first six months, they spent just under $20 million for A&E, Miz & Mrs., WWE Evil and other shows for the WWE Network, compared to $9.1 million the year prior. They anticipated spending between $20-$30 million on content the rest of the year.
In term of “content production incentives,” they received $4 million this year with an expected $10 million coming in the rest of the year.
MLW
WWE addressed the ongoing lawsuit from MLW, who is claiming WWE interfered with a potential Tubi deal and their Vice TV deal, saying they had moved to dismiss the lawsuit in March with MLW filing their response in April.
“The Company believes that all claims in the lawsuit are without merit and intends to defend itself vigorously against them,” it wrote.
Investor Call Notes
Stephanie McMahon, Nick Khan, Paul Levesque and Frank Riddick were on the call. McMahon respectfully addressed the “retirement” of Vince McMahon in her opening remarks while Riddick later accurately called it a resignation.
As part of her list of things to go over, McMahon talked about the year-over-year unique viewership increases on Peacock for WrestleMania (60%), Backlash (49%) and Hell in a Cell (45%).
During the call, she said she wasn’t forced to come back as co-CEO but offered.
Khan again showed optimism for the future rights deal, citing streamers getting into the “live” game and recent rights increase for sports properties. He was asked about packaging the upcoming second day rights to Raw along with the new rights, and he said it’s a delicate balance of monetizing things short-term and long-term.
Levesque said he is looking at everything from top to bottom creatively with “first day thinking” and is confident with the team they have in place. He thinks fans are already seeing some positive momentum. He also touted the company’s NIL program and that the average age of the talent at the PC is 23. They signed 50 new developmental talents the first half of the year.
He said over 90,000 tickets have been sold thus far for both nights of WrestleMania in SoFi.
They said they got a subsidy from Cardiff, Wales, to hold Clash at the Castle — something they are going to look to do with other host cities for major events in the future. Between the subsidy, ticket sales and in-venue merchandise, Clash is going to be “very profitable” for them.
Even with a creative regime change, Kevin Dunn is expected to remain with WWE for now.
Fightful reported the news on Tuesday.
With Vince McMahon no longer in charge of creative, or with WWE at all, there was a belief (and assumption by some) that the longtime WWE executive producer might also be ending his near 40-year run.
From the Fightful report:
“We’ve also been told that WWE doesn’t believe they have anyone currently that could replace Dunn as the likeliest candidate was let go during a prior round of layoffs and a return isn’t likely based on how the exit went down.”
Dunn is WWE’s executive producer & chief of global television distribution and has also been a member of WWE’s Board of Directors since 2008. He was hired by McMahon in 1984 and worked his way up the corporate ladder. Despite the promotions, Dunn has remained in the line producer role for all live WWE TV shows since 1988.
Paul Levesque took over for McMahon as head of creative following his resignation from WWE last month.
WWE has begun to fill the void left when Stephanie McMahon was promoted to co-CEO and Chairwoman as they have hired a new senior vice president and head of global sales & partnerships.
Craig Stimmel, formerly of Snapchat, Procter & Gamble, and NCR, will report to McMahon and co-CEO Nick Khan directly.
From the company’s press release Tuesday:
“As head of WWE’s Global Sales & Partnerships division, Stimmel will be a key member of the company’s senior management team, responsible for overseeing day-to-day operations and leading WWE’s sales organization while expanding its roster of sponsors and promotional partnerships.”
McMahon had previously headed some of those areas up as Chief Brand Officer. She relinquished them when she took a temporary leave of absence to spend time with family that quickly ended in the wake of the allegations against Vince McMahon that saw the 76-year-old resign as CEO and Chairman last month.
Stimmel was the head of global brands at Snapchat the last three years.
Wrestling Observer Live with Bryan Alvarez and Mike Sempervive is back with tons to talk about including the latest on Vince McMahon leaving WWE, the changes to creative and why they should be a positive, AEW’s future with these changes and tons more. A fun show as always so check it out~!
The current system will remain in place with a writing team as Bruce Prichard will head things up and report to Levesque. This dynamic was in place last Friday for SmackDown.
The new 8-K report filing noted that the McMahon departure was a resignation and not a retirement as was stated publicly.
In addition, the company has made a preliminary determination that certain payments that McMahon had authorized (approximately $14.6 million) were never recorded in WWE financial statements. These payments took place between 2006 and 2022.
A WWE official stated that despite the wording in the released 8-K reported, that the $14.6 million in question was paid by Vince McMahon from his own personal funds and not from WWE money. The statement in the release was that the expenses were or will be paid by McMahon personally. They said there were corporate accounting reasons that they released the information and will be adjusting the corporate books for 2019, 2020 and 2021 to account for those expenses.
They are aiming to publicly revise the documentation by August 9, although stated there is no assurance it will meet that deadline.
The company has also received regulatory, investigative and enforcement inquiries, subpoenas or demands arising from, related to, or in connection with the the matters related to the conduct of McMahon and the expenses.
It was not specified if the payments to women, that had previously been claimed were by McMahon personally and not from company funds, constitute some or all of that $14.6 million. But this would likely be something that, when uncovered, forced McMahon out of the company.
The key to this revelation is that it would be almost impossible for McMahon to return to power and this won’t be a temporary departure until the heat dies down as many in wrestling over the past few days had believed, noting the company track record over the years with people who had gotten negative publicity over different things.
They did say that the investigation by the board’s special committee, meaning all members of the board aside from McMahon, Stephanie McMahon, Levesque and Nick Khan, remains ongoing.
The WWE released its expected second quarter (the WrestleMania quarter) financial results early. It showed $328 million in revenue with $92 million in OIBDA and $70 million in operating income. The numbers were above what most analysts had projected. This release was done today to attempt to keep any potential share price drop due to McMahon leaving to a minimum.
But the opposite happened. At the time of this writing, WWE stock price has risen $5.15 per share to $71.77.
This came after analyst Alan Gould of Loop Capital raised his guidance price for the stock from $59 to $90 per share based on an increased likelihood the company would be sold. Within Wall Street, there had been some talk of that in recent weeks even before the resignation of McMahon. Gould said that he expected a rise in U.S. television rights fees in 2025, and mentioned Comcast, Disney Amazon or Netflix as potential buyers.
Due to “certain unrecorded expenses” by Vince McMahon dating back to 2006, WWE announced Monday via a regulatory statement that they would restate several financial statements.
The statements for 2019, 2020 and 2021 and the first quarter of 2022 would be revised. The expenses total $14.6 million which McMahon will pay back.
McMahon is currently under investigation by a special committee of WWE’s Board of Directors for alleged hush money payments toward four former female employees totaling $12 million over the past 16 years. The largest of those totaled $7.5 million to a single person.
McMahon, who had voluntarily stepped down as WWE Chairman and CEO while the investigation was going on, retired from the company on Friday, ceding all responsibilities.
On Monday, Paul “Triple H” Levesque was named head of creative while Stephanie McMahon and Nick Khan were officially appointed as co-CEOs. McMahon had taken over as interim CEO and Chairwoman during the investigation.
Paul “Triple H” Levesque is now in charge of WWE creative.
The company sent out a press release Monday morning formally announcing that Nick Khan and Stephanie McMahon were appointed by the Board as co-CEOs while Levesque is taking over the role previously held by Vince McMahon who announced his retirement on Friday.
“WWE executive Paul Levesque will assume all responsibilities related to WWE’s creative, in addition to his regular duties,” the press release states.
The company had just announced on Friday that Levesque is resuming his role as EVP of Talent Relations.
“I look forward to returning to my prior position as head of Talent Relations. I’m healthy, fired up, and ready to take charge,” Levesque said in the release.
Fightful reported Monday that Bruce Prichard will remain with WWE and also work in creative.
Stephanie McMahon is now Chairwoman of the Board while Khan remains on the Board.
From the two in the release:
“We are grateful for the opportunity to lead WWE together with our unmatched management team. We recognize this is a tremendous opportunity and responsibility, and we look forward to serving the WWE Universe.”
At the time of this writing, WWE stock is up 6% in trading to $70.20 — the first day the markets have been open since McMahon’s announcement Friday.
In this week’s Wrestling Observer Newsletter, Dave Meltzer reported that the decision to appoint Stephanie McMahon as interim WWE CEO & Chairwoman was done by a special committee of the company’s Board that didn’t include her family members or Nick Khan.
Last Friday, WWE announced that Stephanie would replace her father Vince McMahon on an interim basis as company CEO & Chairwoman as a special committee investigation is underway regarding alleged misconduct related to a $3 million “hush fund” given to a former employee/love interest.
While he made that move voluntarily, he still remains the head of creative and made brief appearances on both last Friday’s SmackDown and Monday’s Raw.
“Stephanie McMahon being put in power was said to be based on the decision of a special committee, which would be the eight members of the Board of Directors that were not Nick Khan, Vince McMahon, Stephanie McMahon or Paul Levesque,” Meltzer wrote.
Regarding an unflattering story that came out in Business Insider about Stephanie taking a leave of absence in May, Meltzer wrote that “of the side of the company that buried her on the way out, none of that came from the members of the special committee but from others in the company.”
I talk about the news itself, the twist that Stephanie McMahon is taking over in the interim, the further twist that Vince will remain on as head of creative, and the further twist that he will be on tonight’s edition of SmackDown.
What do WWE’s partners think? What does Wall Street think so far? What do you think?
I also speculate why one long rumored potential suitor to buy WWE is likely out, but not due to any of this news but their own issues.
Click below to listen to this quick 15-minute episode to get caught up on an already wild Friday in pro wrestling.
In the latest development in one of wrestling’s biggest stories, Vince McMahon has voluntarily stepped down as WWE Chairman and CEO while the company’s Special Committee of the Board investigates alleged misconduct.
Stephanie McMahon was named interim CEO and Chairwoman until the investigation concludes.
However, Vince McMahon “will retain his role and responsibilities related to WWE’s creative content during this period and remains committed to cooperating with the review underway.”
Stephanie McMahon tweeted the following this morning:
Until the conclusion of the investigation into recent allegations, I am honored to assume the role of interim Chairwoman & CEO. I love @WWE and all it continues to do to entertain billions around the world. https://t.co/E2MushpoSG
Wrestlenomics’ Brandon Thurston reported that in an email to WWE staff, Stephanie McMahon said, “I will be returning from my leave of absence and assuming the role of interim Chairwoman and CEO. I love our company and am excited to continue to work with our President & Chief Revenue Officer Nick Khan and our Chief Financial & Administrative Officer Frank Riddick. And of course, I look forward to working with all of you. My door is always open.”
On Wednesday, the Wall Street Journal revealed that the Board was investigating Vince McMahon over a $3 million “hush pact” with a former employee with which he allegedly had a relationship with, in addition to other potential non-disclosure agreements.
“WWE and the Board of Directors today announced that a Special Committee of the Board is conducting an investigation into alleged misconduct by its Chairman and CEO Vincent McMahon and John Laurinaitis, head of talent relations, and that, effective immediately, McMahon has voluntarily stepped back from his responsibilities as CEO and Chairman of the Board until the conclusion of the investigation. McMahon will retain his role and responsibilities related to WWE’s creative content during this period and remains committed to cooperating with the review underway.
The Special Committee has appointed Stephanie McMahon to serve as interim CEO and interim Chairwoman.
“I have pledged my complete cooperation to the investigation by the Special Committee, and I will do everything possible to support the investigation. I have also pledged to accept the findings and outcome of the investigation, whatever they are,” said Mr. McMahon.
“I love this company and am committed to working with the Independent Directors to strengthen our culture and our Company; it is extremely important to me that we have a safe and collaborative workplace. I have committed to doing everything in my power to help the Special Committee complete its work, including marshaling the cooperation of the entire company to assist in the completion of the investigation and to implement its findings,” said Ms. McMahon.
WWE and its Board of Directors take all allegations of misconduct very seriously. The Independent Directors of the Board engaged independent legal counsel to assist them with an independent review. In addition, the Special Committee and WWE will work with an independent third-party to conduct a comprehensive review of the company’s compliance program, HR function and overall culture.
The Company and the Board do not expect to have further comment until the investigation is concluded.”
WWE Chief Brand Officer Stephanie McMahon announced on Twitter Thursday that starting on Friday, May 20, she will be taking a leave of absence from the company.
As of tomorrow, I am taking a leave of absence from the majority of my responsibilities at WWE. WWE is a lifelong legacy for me and I look forward to returning to the company that I love after taking this time to focus on my family.
The tweet reads: “As of tomorrow, I am taking a leave of absence from the majority of my responsibilities at WWE. WWE is a lifelong legacy for me and I look forward to returning to the company that I love after taking this time to focus on my family.”
It’s unknown what responsibilities she will continue to retain in the interim.
The 45-year-old has been in the family business for more than two decades, starting in office work and eventually getting the job of heading up the creative team throughout most of the early-to-mid 2000s.
She was also involved in many on-screen storylines with the McMahon family and husband, Paul “Triple H” Levesque throughout the years. She has even wrestled on several occasions, winning the then-Women’s World title in 2000.
In 2007, she was promoted to executive vice president of creative and in 2013, she was promoted to her current role of chief brand officer. McMahon has been a face for WWE in corporate America, especially in the last several years, appearing on podcasts, speaking at conventions and business gatherings throughout the world.
She is a past winner of Forbes’ Most Influential Female CMO award.
In the latest edition of the Wrestling Observer Newsletter, Dave Meltzer provided some WWE notes and insight on Cody Rhodes and some ticket sales updates for WrestleMania 38.
Cody vs. Seth a go for WrestleMania
On Rhodes, Meltzer said that WWE sources have indicated that Cody Rhodes facing Seth Rollins at WrestleMania 38 is indeed set.
“All WWE sources indicate the belief that the deal is done and the match is happening and that any suggestion it isn’t is not the case,” Meltzer wrote. “There are those close to the situation who are still suggesting otherwise but one person in WWE called that ‘silliness’ at this point.”
Veer getting a change
It was also noted in this week’s WON that when Veer finally does arrive to Raw on April 4, his character will be changed.
“Veer’s long-awaited Raw return is scheduled for the 4/4 show in Dallas. It also looks like they are changing his original character,” Meltzer wrote.
What’s closing Saturday’s first night of WrestleMania?
There were reports out this week that Steve Austin’s appearance on the KO Show would headline WrestleMania’s first night on Saturday, but Meltzer said that as of now, that is not the case.
“According to those in WWE, as of mid-week, Flair vs. Rousey was scheduled to close the show but it was also noted that match order changes frequently,” he wrote.
Ticket sales update for WrestleMania weekend
In terms of ticket sales, there are currently 60,586 tickets out for WrestleMania Saturday and 58,499 out for the Sunday show. The stadium is set up for 65,268. The current “get in” price on the secondary market for Saturday is $35 and for Sunday is $29.
The SmackDown/Hall of Fame ceremony on April 1st has 10,704 tickets distributed while the April 4th edition of Raw has 9,744 tickets out. It was noted that WWE will likely set a record for most ticket and merchandise revenue ever from a WrestleMania weekend.
In an interesting deal between two household name brands, Disney and WWE have come to an agreement to stream WWE Network in Indonesia as part of the Disney+ Hotstar service.
The deal begins with this Saturday’s Royal Rumble. All WWE live events will be made available in both English and Bahasa Indonesia languages with a standard Disney+ Hotstar subscription.
Financial terms were not disclosed. This is the first such streaming agreement between Disney and WWE, but according to Deadline, “the companies are understood to have held preliminary discussions for other territories” as Disney continues to look to achieve its 2024 goal of between 300-350 million worldwide subscribers.
WWE president Nick Khan has mentioned on previous investors’ calls that they were going to look for international licensing deals for the Network, similar to what they have done in the U.S. with Peacock.
The Indonesian service launched in 2020 and according to Deadline, it accounts for more than 40 million of Disney+’s global subscribers as it is offered as a low cost add on to the Hotstar service.
