WWE had its first earnings call under its new leadership this morning, and Chair & co-CEO Stephanie McMahon confirmed that her father, Vince McMahon, remains "very much the controlling shareholder" in the company, according to Dade Hayes of DEADLINE. Prior to the call, WWE reported Q2 earnings, with revenue growing 24% to $328.2M, which "beat Wall Street analysts consensus estimates." WWE Chief Financial and Administrative Officer Frank Riddick said that $1.7M in costs "were incurred in the quarter" due to the Vince McMahon probe. The ex-CEO has "indicated he will pay for those costs ... though the company also expects to see additional financial expenses related to the investigation down the road." Meanwhile, co-CEO Nick Khan "emphasized during the call the auspicious trends in the sports rights marketplace, including recent pacts for Formula One and an expected one for the Big Ten." He said that the F1 deal "offered a good template for WWE in that it combines linear TV with streaming" (DEADLINE.com, 8/16).
INTERNAL INVESTIGATION: The WWE said an investigation by its BOD into allegations of sexual misconduct against Vince McMahon is “substantially complete." The WALL STREET JOURNAL's Palazzolo & Mann note the investigation found roughly $20M in expenses that "should have been recorded in the company’s financial statements," including $14.6M that McMahon "agreed to pay women to settle allegations of sexual misconduct from 2006 to 2022." WWE said it has “lost no significant business to date” as a result of the misconduct allegations. However, the company also "cautioned investors that 'a change in the perceptions of our business partners could occur.'" WWE's share price has "risen about 9% to $72.17" since McMahon announced his departure on July 22, with investors "eyeing the possibility of a sale" (WALL STREET JOURNAL, 8/16).
MEDIA RIGHTS TEST: In N.Y., Ryan Glasspiegel wrote WWE's new leadership group of Stephanie McMahon, Khan and EVP/Talent Relations Paul “Triple H” Levesque will be "tested quickly as it negotiates TV rights that are up in the fall of 2024." Currently, WWE Raw airs on NBCUniversal’s USA Network, and Smackdown airs on Fox. The Wall Street Journal reported the last deal for the two weekly programs was for a total of $468M, an increase from $130M per year in the previous contract. Khan on the company’s most recent earnings call in May "expressed a belief that WWE will have more bidders in this rights cycle -- citing Netflix, Apple and Amazon by name as potentially involved players." Glasspiegel wrote as far as the Raw and Smackdown rights, it "may be too soon to declare a favorite for where they land," but early indications are that NBC and Fox will "have to fork over significant increases to retain them." The other question being pondered in industry circles is "whether it makes sense for a content-starved programmer -- i.e. all the entities we’ve already named -- to buy WWE outright rather than pay for a slice of their rights pie along with its competitors." At Friday’s market closing time, WWE had a market cap of $5.4B. While a company would "have to pay a premium to this price to induce McMahon, Khan and the shareholders to sell," it is "a scenario worth considering" (N.Y. POST, 8/15).
With opening week quickly approaching, Ben Fischer, Reggie Walker, and Xavier Hunter were joined by Jabari Young of Forbes to preview the upcoming NFL season. Topics discussed included the Deshaun Watson suspension, Denver Broncos ownership, Dolphins owner Stephen Ross, and the league’s advancements in media.
The Big Ten's big day; Kevin Warren's win; streaming numbers in July surprise; the Haslams look to move ahead and MLB hits Williamsport
SBJ I Factor: Jed York, presented by Allied Sports SBJ I Factor presented by Allied Sports features an interview with San Francisco 49ers CEO Jed York. York is in his 17th year with the organization and his 12th as CEO. He is a two-time SBJ Forty Under 40 honoree as a member of the classes of 2012 and 2013. York talks with SBJ’s Abe Madkour about what he learned from growing up in the sports business, working in multiple departments at the team, the challenges of building Levi’s Stadium, and how his leadership style has evolved through the years. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards, such as Forty Under 40, Game Changers and others.
Shareable URL copied to clipboard!
https://sportsbusinessjournal.com/Daily/Issues/2022/08/16/Finance/WWE.aspx
Sorry, something went wrong with the copy but here is the link for you.
https://sportsbusinessjournal.com/Daily/Issues/2022/08/16/Finance/WWE.aspx
Register for a free SBJ account to unlock one extra article per month.
© 2022 Leaders Group. All rights reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Leaders Group.
© 2022 Leaders Group. All rights reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Leaders Group.
Already a subscriber? Click below to sign in.
Upgrade your subscription to get all the news you need:
Adding SBJ weekly content will give you the comprehensive view of sports business with:
Already a subscriber? Click below to sign in.
Upgrade your subscription to get all the news you need:
Adding SBJ daily content will give you the comprehensive view of sports business with: