WM XXX: Money, Mania and The End Of An Era.

     On April 6th 2014, WrestleMania XXX descended upon the Mercedes Benz Superdome in New Orleans, with over 75,000 spectators in attendance. The event went down in the history books as the biggest and most spectacular WrestleMania of all time. It was filled with action, drama, excitement, surprises and shocks but most of all, it turned out to be the biggest money – spinner of the year for the WWE. For the past three decades, WrestleMania has been the chef d’oeuvre of World Wrestling Entertainment (WWE) and the event is often billed as the Mecca of sports entertainment.

     WrestleMania XXX marked three decades of the WWE’s flagship pay-per-view and the company went all out to generate the hype, excitement and storylines, in the build – up to the Super Bowl of professional wrestling. A star-studded line-up of wrestlers, multiple championships on the line and a legendary host, the immortal Hulk Hogan, were just some of the fireworks that the WWE ignited at WrestleMania. And now, it’s time to cut to the chase. This, after all, still happens to be a corporate blog.

     WrestleMania XXX turned out to be the highest-grossing pay-per-view in the history of the WWE. Tickets for the showdown went on sale in November 2013 and they were eagerly snapped up in a few hours by the WWE Universe. The WWE also offered holiday packages that bundled airfare, accommodation, WrestleMania tickets and entry to the WWE Hall Of Fame and Axxess events, both of which preceded WrestleMania XXX. With ticket prices ranging from $25 for the cheap seats high up in the rafters, to $900 for the front row seats, WrestleMania XXX managed to rake in close to $11 million from its stub sales. But that’s not all. WrestleMania XXX succeeded in pumping tens of millions of dollars more into the Louisianan economy.

     WrestleMania is, without a shadow of a doubt, the biggest extravaganza on the WWE calendar. However, the event is only a small part of what the WWE does year-round. With a topline of over $650 million and an impressive bottomline of over $100 million, the WWE has managed to take an ancient sport and turn it into a spectacle that enraptures hundreds of millions of fans all over the world. With at least 3 shows each week – Raw, Smackdown, Main Event, NXT and Total Divas, the WWE follows an asset – light model of renting arenas all over the United States and abroad, in the event of a foreign tour. Two dozen eighteen - wheelers and production trucks trundle around the country, transporting the gigantic TitanTron, along with the stage, ramp, lighting and pyrotechnic equipment, from show to show. Each show generally sees a live audience of anywhere between 15,000 and 20,000 fans, who generate $1.5 – 2 million in ticket sales.

     As far as its television audience goes, the WWE signs multi – year, multi – billion dollar deals with NBCUniversal and global TV networks to broadcast its content to millions of viewers around the world. The WWE has built up a massive online presence, both in terms of e – commerce and on social media. And then of course, there are the takings from the merchandise sales and the box – office collections from the movies that the WWE co – produces (WWE Films is one of the largest subsidiaries of the company). WWE Films produces a few movies each year that star its own talent and the studio has production agreements for several other movies that go on to hit the screens. While the WWE may be one of America’s biggest entertainment powerhouses, the company is certainly no laggard when it comes to promoting social causes. Besides being a staunch supporter of the American military forces, the WWE also promotes the ‘Be A Star’ anti – bullying initiative in schools across the USA. Additionally, the WWE also backs the Susan G. Komen Foundation, an organization that aims to help the world rise above breast cancer.

     Every year, the WWE spends millions of dollars in training and developing new talent, while forking out huge sums of money to keep its stars on its rolls. The company pays salaries as low as a few hundred thousand dollars to the runts of its locker room and as much as $6 million to its top stars, bundled with a 6% share in merchandise sales and a cut in the company’s profits. Despite its extravagant payroll, WWE stars do continue to be poached by TNA Wrestling, the Panda Energy – controlled rival. TNA, which was nothing more than an upstart start – up a few years ago, has managed to grow in size and scale, while drawing talent from the WWE. After the WWE acquired its most formidable rival, Ted Turner’s WCW (World Championship Wrestling) in 2001, it was the only player in the market until Jeff Jarrett and Panda Energy launched TNA Wrestling. While TNA is headed for bigger and better things, it still is a long way away from dethroning the WWE.

     But despite its attempts to grow its business in leaps and bounds, both topline and bottomline growth for the WWE have slowed down as of late. In a bid to keep its cash registers ringing, the WWE recently announced the launch of its own WWE Network, which offers content from every single match in its archive, for a paid subscription. Additionally, in a masterful move that was aimed at capturing a much younger demographic, the WWE produced its own WrestleMania movie starring the kid – favourite canine, Scooby Doo and animated versions of its biggest stars.

     The WWE has also tried to boost TRPs by bringing back some of its legends of the bygone era and stars that walked out of the company year ago. Most episodes of the company’s TV shows are the most – watched on prime – time hours in the USA. The company’s efforts are beginning to pay off, as far as Wall Street is concerned, as the WWE’s stock price climbed from $8 to $32, in the months that led up to WrestleMania XXX. However, when the New York Stock Exchange (NYSE) opened for trade on the morning following the spectacle, the WWE scrip opened 20% circuit - down. Some attributed the fall to the less – than – expected subscription numbers for the WWE Network (six – tenths of a million as against expectations of at least a million) while many others said that the crash had a better explanation. For, the previous night at WrestleMania, a legend had made his last stand.

The End Of An Era.
     Many thought a day would come when Hawaii would be first to see the sun rise but few anticipated a day when The Undertaker would lose at WrestleMania. However, 6th April 2014 turned out to be that very day. After notching up 21 victories at 21 WrestleManias, over the course of 21 years, the WWE Universe was mortified when Taker didn’t rise for the 3 – count, following a thunderous F5, in his match against Brock Lesnar. Even though The Undertaker is nearing the end of his storied career, everybody expected him to retire with his coveted WrestleMania streak intact. The Undertaker’s defence of his record – breaking streak, which has always been a major crowd puller at WrestleMania after WrestleMania, sees the icon go up against anyone who dares to pursue the Holy Grail of WrestleMania. Over the years, The Undertaker has gone head - to - head with legendary foes such as Shawn Michaels, Triple H, Kane, Randy Orton, CM Punk, Jake ‘The Snake’ Roberts, Giant Gonzalez, Big Show, Ric Flair, Edge and Batista. And every time, for 21 years, it was The Undertaker who came out victorious. But the 22nd time didn’t turn out to be the charm for The Undertaker. When it was all said and done, Brock Lesnar turned out to be the one in 21 – 1. Vincent Kennedy McMahon, the billionaire chairman of the WWE and the so – called ‘Evil Genius’ is said to be the one who made the call when it came to The Undertaker losing on the grandest stage of all (Taker’s loss is even being touted as the most shocking moment in the history of professional wrestling). So, why then did the WWE scrip collapse by 20% when trade opened on the morning following WrestleMania? Well, for one, WrestleMania XXX might have been the very last match of The Undertaker’s illustrious career. With The Undertaker wrestling only one match a year, Vince may have decided to pull the plug on The Undertaker and he did manage to create a significant level of short – term shock – value (repeat bookings for the Taker – Lesnar match spiked on the WWE Network). However, that decision might turn out to be one of the biggest blunders of all time and it may return from the dead to haunt the WWE in the long run. After all, by having The Undertaker’s streak end, WrestleMania’s biggest selling point now lies buried six feet under. And it certainly isn't resting in peace.


      The Undertaker’s WrestleMania streak isn’t the only era that seems to be well and truly over. The WWE itself, as a whole, is stepping into a new age. With the company having ditched the Rated – R tag and embraced the PG – 13 rating era, the WWE is trying to capture a younger audience and appeal to the masses. The WWE of today is certainly a far cry from that of the 1990s, when the Attitude Era was running wild and sex, drugs, rock and roll, blood and gore were the mainstays of the day. The WWE, by hosting more global tours, is making a concerted push into newer markets such as China, Latin America and the Middle East, whence the next phases of growth should originate. But the company and the wrestling business are not bereft of their challenges. The WWE continues to see an exodus of talent, some of which happen to be its top stars. Word has it that Vince McMahon continues to rule over the WWE with an iron fist and favouritism still scores over wrestling skills. Disgruntled wrestlers continue to desert the company, unhappy with their pay packages and booked storylines. Fans complain about the repeat matches featuring the same wrestlers. As a whole, the wrestling business is itself seeing a major transformation, with social media and the influence of the Wall Street investor community calling the shots, resulting in content and raw action being relegated to the sidelines. And of course, the WWE is said to be leading this revolution from the forefront.

     The Stamford, Connecticut – headquartered entertainment giant has seen four generations of McMahons at the helm over the years and some say that the WWE has lost its touch and the attraction value that it used to command a decade ago. The outlook on the company’s stock, however, is bright, with network deals commanding higher premiums, WWE – backed films scoring big – time at the box office and supplementary streams of revenues, such as those from the WWE Network, expected to grow in the coming years. As far as the WWE’s most prized asset goes, its vault of full – length footage from every match wrestled over the past 6 decades is said to be worth several billions of dollars. And now, with the company racing towards a billion dollar topline and under the scrutiny of Wall Street, business has slowly started trumping content and entertainment value. But the WWE, in its defence, is doing what’s...ahem... best for business. The show, after all, must go on.    

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