Despite AEW’s success since its inception in 2019 and its significant earnings as a relatively new company that has yet to renew its television contract, its budget is slightly limited. For this reason, back in June, AEW decided to make some cuts to accommodate this financial situation. According to Dave Meltzer of the Wrestling Observer, one of the effects of the budget cuts at AEW was the decision to hold Collision in the same city and arena for several weeks. Thus avoiding expensive tours.

In addition, the possibility of cuts in the production of events to adjust to current financial constraints was raised. It is worth noting that the company ended up closing in 2023 with economic losses. This was pointed out by Brandon Thurston of Wrestlenomics, who estimated that AEW lost about $34 million in 2023. But what is causing this major loss in revenue? AEW did suffer a slump in ratings, but they have finally started getting traction again. So what is causing the issue? Well, we finally have an update on that front from a veteran of the sport.

AEW’s expenses baffle legendary manager!

Dutch Mantell is a legendary figure in pro wrestling. The icon is the host of his Story Time with Dutch Mantell podcast, where he talks about all things wrestling. This week, one of his major talking points was how Tony Khan handles the finances at AEW. The Jacksonville-based promotion has a notorious reputation for mass-hiring wrestlers and not utilizing them. Something that was pointed out by the legendary manager on his podcast as well.

He said, “One pay-per-view and a taping of AEW Collision has cost Tony Khan nearly $4 million. I don’t believe that. I really don’t. This is from the newsletter. Mike Mansouri filed forms for tax credits in Nevada listing the written express. The expenses for the TV taping and the Double or Nothing pay-per-view show. It’s costing nearly $3.8 million. I haven’t got the exact one. $3.868 million. So towards $3.9 million just for two shows. The talent budget alone was $2 million. I know it was a pay-per-view, but everyone’s on a guaranteed contract. So does that mean that Tony Khan is paying over $100 million just for talent?”

He further called out Tony Khan for not being a good businessman like his father since the AEW President is simply taking up the losses. “Tony Khan is an enigma to me remains an enigma to me. I thought you were going to say nincompoop. No. I think a nincompoop would have more, you know, business acumen than what Tony Khan has. You know, his dad had to teach him all this stuff. And surely he can he can tell the difference between a profit and a loss. You know, you want to make the profit as much as it can be. And you want to minimize the loss as much as it could be. But he’s going in opposite directions.”

Apart from talent, where else is Khan making losses, and how is he generating revenue? All this was revealed by WrestleNomics right before the end of last year. As analyzed the financials of the Tony Khan-led promotion and revealed why Khan is not running the promotion the way he should’ve.

All about the AEW finances last year

Thurston estimated that AEW generated approximately $154 million in net income in 2023. Up from $100 million in 2022, which was a significant increase. AEW obtains additional income from international television agreements with networks such as ITV in the United Kingdom and Eurosport in India, which generated another 7.8 million dollars. In total, Wrestlenomics estimated that AEW earned around $98 million in 2023, which includes an additional $19.4 million from pay-per-view purchases.

To this figure, another $34 million must be added from just over 500,000 ticket sales at the end of the year. Along with another $22 million in consumer product revenue. However, the revenue growth is still less than AEW’s expenses, with talent compensation estimated to cost AEW around $85 million per year. Media and event operating expenses add another $66 million to expenses. While consumer product licensing expenses and overhead bring AEW’s estimated outlays to just over $188 million.

So basically, AEW had an EBITDA (earnings before interest, taxes, depreciation, and amortization) of $34 million in losses by 2024. The net income from the promotion will be even worse. All in all, Khan would surely have to rely on his new deal with Warner Bros. Disney. So, what do you think? Where is Tony Khan actually failing? Let us know in the comments.