World Wrestling Entertainment (WWE)

[tw0122]

Things are never straightforward with the WWE and Vince McMahon but last week might just have been the toughest: From firing talent during a pandemic and an alleged murder cover-up to joining Donald Trump's economic advisory team.

The week for McMahon started with the decision to file for bankruptcy for his alternative to the National Football League, the XFL, due to financial restrictions brought on by COVID-19.

The venture had already seen the 74-year-old and partners reportedly lose $35 million back in 2001, having failed to muster much interest from NFL fans.

By 2018, McMahon revealed the league's revival, and he plunged $18 million into it following the sale of close to 400,000 WWE shares. A listing of the bankruptcy shows that assets and liabilities range from $10 million to $50 million.

For most companies, bankruptcy would be a tough week in and of itself, but for the WWE, that was simply a drop in the ocean.

Next came heavy scrutiny. Linda McMahon had promised to spend $18 million through her pro-Trump Super Pac group in Florida on the same day the state deemed live sporting and media productions as "essential services."



This decision was made even though in the previous week a WWE employee had tested positive for COVID-19. This was also the day that Vince's close friend Donald Trump name-checked him during a White House press conference, claiming that he, alongside the likes of the UFC's Dana White, the NBA's Adam Silver and the NFL's Roger Goodell, were on an economic advisory group.

To round off an already hectic Tuesday, the latest episode of Vice's "Dark Side of the Ring" was released and made some damning allegations. The episode entitled "Jimmy Snuka and the death of Nancy Argentino" looked at the 1983 death of Snuka's former girlfriend.

In the documentary, it is heavily alleged that McMahon attended Snuka's second interview with detectives and shortly after the case was dropped until its reopening in 2013. 

Snuka was eventually charged with involuntary manslaughter and third-degree murder in 2015. However, the judge dismissed the charges against the wrestler as he was deemed "not mentally fit to stand trial." 



Both in the documentary and in Snuka's biography there are claims that a "wrestling promoter" offered $25,000 to the Argentino family to "keep quiet" about the case.

The day after the documentary's release, the WWE made numerous releases to both off and on-screen talent including the likes of Kurt Angle, Luke Gallows & Karl Anderson, Rusev and referee Mike Chioda.


In total, 37 employees lost their jobs in the middle of a global pandemic. While some, such as Drake Maverick, will continue to work on a temporary freelance basis before being officially let go by the company.

According to Dave Meltzer of the Wrestling Observer Newsletter, the talent cuts will potentially save the WWE between $703,000 and $4 million.

However, there are still questions as to why they needed to be made in the first place. The company was able to pay shareholders - including Vince McMahon, their stock dividend. McMahon's alone could have covered the salaries of all of the released talents for another five months.

Despite the week of negative press, alleged bribes, cover-ups and being an advisor to Trump, WWE's stock prices have continued to rise following a poor showing throughout April. 

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[Chyna9]

Well ****
Yes, he was absolutely the best.
RIP Howie.

[Hulk Hogan is God]

Fink was the best. “And NNEEEEWWW champion”. Legend.

[Gene_Simmons]

Fink dead. Man that sucks

[Hulk Hogan is God]

Gallows and Anderson are custom built for AEW with their time in Japan. Everybody else was droppable.

[Chyna9]

The Vince haters are out in full force on the twitters and facebooks. Even some on MSM.

He's the greatest mind in the history of the biz, I suppose it comes with The territory. Pun intended.
I'm case anyone forgot, the week after mania they do this every year. Usually after giving everyone one last big fat check from mania gate. Unfortunately there was no gate this year. But any notion that he's a jerk is nonsense, and not reality based.


The storm will be weathered and they'll end up having a solid year. Rebuilding. Restructuring. Just like everybody else.

2020, where it all begins...Again.

[Chyna9]

Wow, just saw the news of lots of "future endeavours" today.
Some surprising, some not.

VKM should be proud of himself for helping Angle and Kaneillis. Both could have ended up bad statistics, both are good people and very talented. Same with double J though he's still in the payroll which may mean he doesn't feel safe releasing him yet. And/or his business mind is worth way too much.

Gallows and Andersen will go back to Japan maaybe?
A few to aew, a few to roh, a few to impact, a few to indies, a few retire.

Will affect the indies for sure and take up some spots of younger talent which is unfortunate but part of the cycle. And all of the promotions listed will get a handful of high level professionals which is great for the lockeroom.

[Chyna9]

After watching trump today I may have mispoken and it'll be in the states in May. But surely wrestling will be first. But we will have to see.

[Chyna9]

I would put money on Vince pulling off the first large public gathering on planet Earth in a few months, presumably in the Kingdom with about 15,000-20,000 in the crowd.

[Chyna9]

Bummer.
I thought they did a pretty good job this time.

[alchemytrader]

Vince McMahons Alpha Entertainment files for Chpt.11 BK.

I actually feel bad for Vinny Mac. The XFL was gaining momentum and the Chinese virus screwed him over.

[Hulk Hogan is God]

XFL done. For good. Again. Monday is gonna be interesting for sure.

[Chyna9]

Earnings call announced for april 23rd, should be interesting!

Mania numbers were probably good imo and hoping network subs jumped. And no idea what kind of event insurance they have for all the missed dates. Not any idea on how they are paying folks, if everything is downside only or maybe if network jumped talent will get a different cut. But only thing for sure is this WiLL end and wrestling will be one of the first things back. People love their sports but people love wrestling in a different way imo. Much more dedicated. The second it's possible, indies will be back.

[Chyna9]

I hear buildup has been good there.
But I haven't watched, will catch back up.

If Drew beats Brock, and I hope does, I'll be majorly bummed that there's no audience.



I have watched a bunch of old SNME though, love that show, VKM was so good in the mic & always had a great partner be it Jesse, Hot Rod, Heenan, etc. And the theme song is so good.

[Hulk Hogan is God]

AEW is Tony Khan’s baby. It has support so long as it stays reasonably close to profitable in the long run.

Khan is living the dream all true fans have.

[Hulk Hogan is God]

I’m digging Taker/A.J. probably the only thing I’m looking forward too much on the card.

[Chyna9]

(For now) I'd love to buy some mid 20s.

House shows....dunno...maybe won't exist.


Will AEDub come out ok?
I think many, many indies will not come back, but the well-managed ones will & maybe a lot of merging, dunno...

I miss Freelance from Chicago, one of the best.

[Hulk Hogan is God]

For at least three months there will be nothing, then after that you have both the financial hit from financially strapped people not being able to afford things like tickets to Smackdown or a house show. Plus it’ll be awhile before parents are comfy sending kids to packed arenas.

The 20’s are coming. Watch em brother.

[Chyna9]

PPS has held up better than I thought....haven't bought back yet though.

I haven't looked into it but wonder what if any insurance payouts they will get from lost gate rev.

The moment it's feasible, live shows will start again, and I don't care what country it is in, it'll be a huge draw.

I said earlier in year, 2020 will be where it all begins again (one of my favorite vince-isms), & that will surely hold true.

[Hulk Hogan is God]

PPS is trying to stay over $30, but dude they have zero live revenue out of nowhere, and IMO the empty building shows aren’t doing anything to add subscribers. XFL cancelled, still plenty of room this needs to drop IMO.

[Hulk Hogan is God]

Vince picked the wrong year to put a bunk load of cash into a now twice failing football league.

[Chyna9]

I plan to buy in midlow20s for now.
I think Mania will happen but not until it looks like it won't for a minute. If absolutely can't do it, I think it'll just get postponed. Everything will pan out.

[Chyna9]

I plan to buy in midlow20s for now.
I think Mania will happen but not until it looks like it won't for a minute. If absolutely can't do it, I think it'll just get postponed. Everything will pan out.

[Hulk Hogan is God]

I feel bad for anyone holding this right now, u shoulda let go a week ago as this was getting tougher.

[Hulk Hogan is God]

Me right brother.

[Hulk Hogan is God]

[Hulk Hogan is God]

Washington Gov. Jay Inslee encouraged residents and organizations to give “serious consideration” to canceling or postponing large events. He also directed state insurance providers to waive copays and deductibles for anyone qualified for testing for the virus, and directed the state’s labor department to ensure compensation for health-care workers and first responders who are quarantined.

[Hulk Hogan is God]

And Lesnar (Former UFC champ!) was putting over a raging new star early in the show so he could go home (which he was happy about) knowing it was one of the few jobs he’d ever do. That was just business. And as dominating as Lesnar is, he knows how to do business.

This was him hitting his finish over and over and over and over and over......and over again. No three. Fiend must be tough eh?

Wait, no he isn’t! Goldberg just kinda threw him over his shoulder! One two three!!! Sorry Reigns, your move must suck? He’s 53, can’t wrestle and is 100% guaranteed to lose to “big DAWG” Reigns who will be THE MAN for realsies this time!!! Yay!!!!!!

[Hulk Hogan is God]

Suppose Coronavirus spreads to common zones in the next six months where schools close in some areas and people really start taking precautions....Are you more or less likely as a parent with kids to buy tickets to Smackdown?

Also the dividend is still only like 1.1%.

Short this all day jack!

I’ll load my boat at $25 when house shows are dying.

[Chyna9]

I dunno Hulkster.
By that metric, Brock must have been absolutely emotionally devastated & crushed by losing a world title in the opening F'n match of Mania via multiple Rollins stomps in a pretty short bout a couple years ago.

But I don't think he was lol, not in the slighest. Not even for a half second lol.

They're professionals. I get what you're saying though & there is truth in it. I didn't actually see that match but didn't it end in dq or something? Alls I know of it is fans were pissed.

Goldberg is heel now ( I think??) And yes reigns will take belt. Again. Your betting line on spears/superman is probably about right, or is possible will just be a quick squash.

E is at $44.85 right now. I'm thinking not quite a buy yet but very soon. No shares at moment.

[Hulk Hogan is God]

And for what? To give us a 100% guaranteed Reigns win to ‘make’ him yet again? The only question about that match is what is the over/under for total # of combined Spears and Superman punches. I say 12.

[Hulk Hogan is God]

Dude, he cares. Nobody wants to see their finish hit 23 times to be less effective than a jackhammer from 53 year old Reigns meat. Wrestlers, particularly ones at the top fighting for placement and legacy, care about these things greatly.

WWE slapped Rollins in his eye with that stunt.

[Chyna9]

That was def the worst jackhammer ever lol.
Rollins is a seasoned pro now. Doubt he cares one bit lol. Where did he cut his teeth??? Roh & fcw/nxt. Most of the roster are now nxt alum. Watch mlw or freelance if need a good E alternative. When I say 'production' it's the whole picture, refs/announcers/camera/pacing/etc.

[Hulk Hogan is God]

Poor Seth Rollins Curb stomps Fiend 23 times and loses. Goldberg hits a half jackhammer and pins him from the couch.

[Chyna9]

A lot of their talent work elsewhere Fri-Sun. Are they not paying them enough? Dunno. Jericho is banking. Cody is banking. But what about everyone else? It doesn't compute. They said early on women would get 50/50 time...Not even close. One match of what, 7 or 8 at revolution. The creative control aspect will bite them in the ass eventually imo, anytime 'the boys' book everything and control everything, big in-fighting eventually results. I would guess that's already happening. Production has improved some, but still nowhere close to wwe, or even a MLW (Which is an example of a solid company imo that understands the business part).

The second show I think will be a revamped Dark which they tape at dynamite each week. They are nowhere near being able to draw twice a week imo. Florida's nxt does not get huge crowds on their weekly circuit, but enough to survive. They run 3-4 times per week. It's an intensive training program to reach professionalism. This is a business. To me, I still see a vanity project and a "F vince" attitude. Bad idea. I don't see that at all in mlw or some of the other top tier midmajors/indies. I would love nothing more than solid competition for vkm from aew but I just don't see it, at least not yet, & I don't see indications it's gonna change.

[Hulk Hogan is God]

Personally I think AEW’s schedule is a benefit to their product. Their wrestlers aren’t schlepped to house shows all week, they aren’t crammed crappy scripts into their hands, they get time to recharge and renew their already honest self created personas. I’d be nervous when AEW goes to a 2nd show.

[Hulk Hogan is God]

If Hardy shows on AEW in broken gimmick, ratings will rise.

[Chyna9]

Agreed.

[Hulk Hogan is God]

Pps down 35% last three months. Ratings continue to fall for XFL. Uh-oh.

[Hulk Hogan is God]

Jericho has been wrestling circles around the dust of Goldberg’s in ring skills nonstop around the world winning titles solidly for the past decade. Goldberg has been riding motorcycles. Jericho is ridiculous, Goldberg is a 53 year old part-part timer who just won their belt. Absolutely no comparison.

[Chyna9]

Hulkster, I think pps has held up pretty well given the overall market environment. "Plummeting" would be more like in the mid 30s. doubt will happen, revs are strong and it's mania season.

Xfl overall is doing great imo. Attendance (I think) has far surpassed expectations & tv ratings fairly good. Down some for sure, but I think better than most thought. I think it'll survive, vkm will sell off some of the franchises & get $$$ from tv too. Lots of football left in the season though but I'd call it a success so far compared to first time.

AEW is doing some good stuff no doubt, revolution was well-received, there's things I like about it but doesn't matter in big picture imo. I don't think they have the slightest idea how to run a wrestling company whereas vkm has done it for decades, far better than anyone else. They seem to have a chip on their shoulder 24/7 vs just doing their thing. Personally I like MLW a lot better for a mid-major, and Freelance as an indie. Both of those companies seem to understand the biz really well. Structurally, I see MLW better positioned than aew.

Re: Goldberg, was shocked he got the belt but if you are just knocking his age, Jericho has been aew champ and doesn't exactly look in great shape. Though he's a far superior performer imo. In the end I think it comes down to infrastructure, and Vince "building" nxt out of fcw years ago was one of the best moves in his long career He said at the time it would change everything, again, & it certainly has Japan expansion brand coming soon too. Florida's nxt runs more often in a week than aew in a month, and it shows. Bigtime. Jmho, share yours back if want.

[Hulk Hogan is God]

Two reasons why this is plummeting:

1. https://thespun.com/xfl/tv-ratings-are-out-for-the-xfls-first-4-weeks

2. AEW is so much better right now. Their PPV killed while Vince put the belt on 53 year old Goldberg. Fans leaving the ship over Fiend.

[Hulk Hogan is God]

So far I’m wrong brother. Can week 3 hang tough?

[Hulk Hogan is God]

How far do ratings slide?

They go up (impossible) and the stock soars next week.

They stay the same and the stock does well.

They dip slightly and the stock STILL performs well next week.

They dip significantly (as they will) and the early bail continues.

IMO

[Chyna9]

I do not see that legal argument going anywhere. Sounds like a disgruntled investor & I'm surprised any attorney would even represent it. Being mad that pps went down doesn't mean you have legal standing against the chairman. Be mad at yourself, or market makers for artificially taking it down, but not at vkm.


Xfl is off to a great start. Not surprised. Not fair to truly judge it till at least another month but I suspect it'll be a big success.

Back to wwe...
2020 will be highest revs ever, again.

[Soco54]

The rating were not bad over the weekend and neither was the actual football play. I want this to succeed as a football fan and I personally believe there is a market for a spring league. I doubt the league folds in the middle of the season like the AAF. IMO the XFL got off to a good start and is so much bette than the previous XFL product. The kickoff is a great idea to still have exciting kickoffs while limiting injuries. The 25 second play clock and the refs, in booth ref, trainers and players microphoned is a good idea but can be tricky to navigate. Cameras inside locker rooms at Halftime. The extra point rules as well. This league is very intriguing and I can see it working as a spring league that can act like an unofficial minor league of the NFL. MLB, NHL, and the NBA all have some kind of minor league system or alternative league. Football which is America’s #1 sport has room for another league.

[Soco54]

The XFL and WWE are linked tho. There was just a lawsuit filed by a guy to find out just how closely they are linked.


“Did Alpha Entertainment, the XFL’s parent company, which is wholly owned by Vince McMahon, pay fair market value to WWE for the intellectual property of the original XFL, which included giving WWE a percentage of the company?
Is Alpha paying WWE fair market value for the support services that WWE is providing as part of that deal?
Was the XFL revival announced before the deal was completed?
In general, did McMahon and WWE, including WWE’s lawyers, act in a way that was not in WWE’s best interests?”


https://www.forbes.com/sites/davidbixenspan/2020/12/31/wwe-xfl-shareholder-lawsuit-vince-mcmahon-full-details-aaf/#223fae25766e

[Hulk Hogan is God]

When the Network started really kicking and they signed the great TV deal and the pps rose like Sabu signaling to the sky, people were expecting that dividend to rise. Even another .12 per year would have been enough to keep things interesting.

WWE has made it abundantly clear that to own their stock, you get .48 per year every year so help me Hull Hogan.

So, let’s plot price then. What is a fair return? I’m gonna set a big arse buy at $25 per share and leave it. Two months I’ll get em after people are laughing about the quarter filled stands in the first round of the XFL playoffs.

[Hulk Hogan is God]

Company might be doing great, but:

1. They just missed guidance.
2. They ain’t raising dividend.
3. With a .48 dividend, the stock pps was WAY too high. It’s STILL too high.
4. Vince ain’t feeling generous. He is about to lose the $ he raised by selling a ton of stock while it was higher.


This thing is going down duh duh down.

[Chyna9]

I think lots of people are playing this one, I don't usually do big board stocks, mostly prefer otc.

But, the company is doing excellent. The real numbers don't lie.

Lots of people are scalping off big money here as this fluctuates 10-20%.

It will settle out, and all will be well.

2020---where it all begins, Again.