WWE Preparing for More Financial Cutbacks This Year

Aug 1, 2017

WWE is currently preparing more financial cutbacks to occur this year, according to the Wrestling Observer Radio.

The Observer’s Dave Meltzer stated the main reason is due to the WWE being way behind profit expectations for the year after promising bigger profits than 2016 to investors. Meltzer stated the WWE made around $30 million in net profits last year and are estimated to have only made around $5-$6 million so far this year in net profits.

“So last year’s profits were about $30 million. And this year we’re about halfway through and — I don’t have the exact numbers in front of me – but it’s like five or six million, which means there’s a lot of catching up to do.”

While Meltzer stressed this does not mean the company is in any financial trouble, he did state the WWE is currently very concerned with the WWE Network after it suffered the largest subscriber drop for a fiscal quarter since its launch in 2014. They are also upset the Network growth from Wrestlemania was not at the levels they were expecting.

“They’re not in any financial trouble but the Network subscriber number is a genuine disappointment. The growth coming out of WrestleMania that would have been expected wasn’t there.”

Meltzer stated the WWE is likely aware their current two PPVs per month model is not working for the Network in terms of subscriber growth but are also unlikely going back to the old model of one PPV per month due to possible ratings reasons.

“The one thing that we have learned is that the two pay-per-views a month, that has not helped. The Network number is not growing the way they expected it to so that’s been a bad situation. But I don’t think they want to drop one of the pay-per-views because I think that would hurt ratings a little bit.”

It was also revealed costs from the United Kingdom tournament is still the main reason why the WWE has been very hesitant on resuming tapings for a UK series on the Network. It would only mean more added costs to the Network with little being generated in return.