WWE Reportedly Made 40% Profit Before Releasing Talents as Possible Budget Cuts

Endeavor has had its eyes set on WWE for a long time. Finally, when the wrestling promotion was open to sale, they acquired it, only to merge with the UFC. Both WWE and UFC combined to form a $21.4 billion sports entertainment company called TKO. And ever since the acquisition has been completed and Vince McMahon has successfully secured his position at a higher level, there have been some notable changes.

Some of the initial changes also included WWE trying to change SmackDown’s home. What started as rumors have reportedly been confirmed as the Stamford-based company secured a considerable profit with their latest deal.

Where will WWE fans see SmackDown now?

From 2016 to 2019, SmackDown used to stream on the ‘USA Network’. However, starting in October 2019, the blue brand’s home shifted to Fox. After holding the streaming rights for the same for four years now, the partnership is coming to an end. Although it seems like a sad goodbye, it’s a profitable deal for the company.

After previously airing on USA Network for three years, SmackDown was shifted over to Fox as the latter offered $205,000 per year. Now that Vince McMahon has sold his company to Endeavor and in turn has become an even bigger promotion, they raised their demands in front of Fox. Since they were unable to meet the demands, the company searched for a new home for SmackDown and ended up on the USA Network yet again.

This time around, however, the former streaming partner offered to pay $287,000 per year for five years, enclosing a $1.4 billion deal. Annually, it is a flat 40% profit for WWE.

Although some of the decisions, including the mass release of performing talents, after the merger, have faced criticism, we can argue that the merger has proved profitable for WWE so far. In fact, a former pro wrestler is reportedly trying to follow in the footsteps of the Stamford-based company.

UFC-WWE merger inspires $800 million worth WWE legend

McMahon’s decision to merge his company to become an even bigger one was claimed to be a ‘genius’. Looking at the success it brought about, Dwayne Johnson is also reportedly trying to follow suit. If you have been following us since the reboot of XFL, you might be aware by now that the minor football league suffered a $60 million loss in its initial season.

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To overcome this loss and to survive in the competitive market of football leagues, Johnson might be looking forward to merging his league with USFL. Since the United States Football League has been around in the industry for a good while, this would help XFL sustain itself better.

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Do you believe WWE is heading toward success with this deal? Don’t forget to share your opinions in the comments below.