Is WWE Doomed Financially?

More from WWE

In a recent video debate, Brian Sozzi of Belus Capital Advisors argued that WWE from a financial standpoint will eventually fold. This pessimistic perspective on the company’s long-term future is based on three reasons:

1. Aging stars will soon be forced to retire.

2. The frequency and unpredictability of superstar injuries.

3. The uncertainty surrounding the WWE when Vince McMahon is no longer at the helm.

This should not be considered an immediate threat for wrestling fans. The WWE recently announced that 1 million people have subscribed to the WWE Network, and this resulted in their stock rising 20%. They maintain consistent ratings on both RAW and SmackDown, and live ticket sales sell out in minutes, especially at the biggest events like WrestleMania. They are the biggest company on the planet by a considerable margin, with no competition able to match up to them at this point in time.

WWE.com

However, in ten or twenty years time, will the WWE still exist, or will all these predictions by Sozzi eventually cause the world’s biggest sports entertainment brand to go out of business? Let’s consider every argument he made and discuss them in greater detail.

With regards to aging superstars, it is undoubted that some mainstays of the industry will be forced to retire within the next decade. Household names like Kane, Big Show, Rey Mysterio and The Undertaker will very soon be hanging up their boots for good. Brock Lesnar’s future with the business has been in major doubt as well, with many expecting him to return to the UFC when his contract expires after WrestleMania. And the face of the WWE John Cena is approaching 40 as well, with his eventual successor yet to be decided upon by either fans or those behind the scenes.

A number of these superstars are both immensely popular, and have links back to the Attitude Era or Ruthless Aggression age which were two of the most popular periods in wrestling history. However, the wrestling industry has always shown a great ability to adapt and evolve to the environment at hand. Big names like Randy Orton, Dolph Ziggler, Bad News Barrett, The Miz and Daniel Bryan are yet to reach 35, so have plenty of years left in their careers. And even more exciting are some of the names below the age of 30, including Dean Ambrose, Seth Rollins, Roman Reigns, Bray Wyatt and Cody Rhodes. These names along with the enormous potential in NXT and the Performance Center should ensure that the eventual disappearance of veteran superstars will eventually be compensated for.

WWE.com

As for the second point about injuries, I don’t really see where Sozzi is coming from. It is not as though the WWE hasn’t had to endure unfortunate injuries at inopportune times before. Frankly, 2014 was one of their worst years with regards to injuries in their entire history, with prominent performers like Daniel Bryan, Randy Orton, Sheamus and Roman Reigns being ruled out of competition for considerable periods of time. Bryan’s injury was particularly unfortunate due to it derailing what surely would have been a more successful title reign.

Injuries are just freak occurrences that can happen at any time, no matter how safe and professional the competitors are. It is a physical and strenuous job, and it is an element that can’t be avoided, and so far has been yet to destroy the financial stability of the industry. I mean, Stone Cold Steve Austin suffered a long-term knee injury at the height of the Attitude Era and that didn’t damage the financial security of the WWE, even with WCW as a competitor.

WWE.com

The only reason that I feel holds water surrounds Vince McMahon’s eventual departure from the WWE, either due to retirement or infirmity. Whilst smart fans are quick to criticize him for being out of touch and not responding to what the fans what (or more accurately, what they want), McMahon has been the driving force behind the juggernaut the company has become. For every bad mistake he has made, and there have been plenty, without his creative vision and ability to adapt to a situation, the WWE would likely not be in existence right now, and certainly not have such an iron grip on the industry in general.

When McMahon is forced to step down or passes away, it will undoubtedly have a negative effect on WWE’s stock value and lead to an immediate period of chaos behind the scenes. McMahon might come across as a dictator backstage for having the final say on decisions and edits on RAW, he draws the criticism of every mistake on television/booking and gets none of the praise when things go right. His influence helped push WWE into the mainstream, and went from a separate industry to an entertainment powerhouse, that covers a broad spectrum of fan followings across the globe.

WWE.com

Will the company be able to thrive in the same way with McMahon’s departure, leaving the WWE seemingly in the hands of daughter Stephanie and son-in-law Triple H? A number of wrestling fans and commentators have been quick to welcome this transition sooner than later, seeing the product that has been produced in NXT as a signal of things to come with Triple H in creative control. Whilst I will be the first to pass on my plaudits to him and agree wholeheartedly that NXT is the best wrestling show on television at the moment, it does not necessarily mean that he and Stephanie can live up to the mantel that Vince McMahon will leave behind.

NXT is exclusive to the WWE Network, and as such is geared towards the hardcore and devoted wrestling fan. Many casual fans don’t pay attention to it, or react in the same way that huge fans do to names like Sami Zayn, Adrian Neville and Kevin Owens that made their names on the independent scene. When forced to face the reality of taking creative control of the bigger shows and appealing to a larger and more diverse audience, this experience may count for very little. It will be an utterly different environment, and both Triple H and Stephanie will have to sink or swim fairly quickly.

WWE.com

Nevertheless, both have learnt from the master at this craft, and as Triple H demonstrated on Stone Cold’s podcast, has studied a great deal about the production side of the industry. I have confidence that they will eventually thrive in their new responsibilities. However, with regards to WWE’s long-term financial stability, it is Vince McMahon’s eventual departure that holds the biggest question mark over their heads.

Will WWE ever go out of business? Leave your comments below.

More from Daily DDT

Home/WWE