AEW is reportedly in debts due to major investments in video games
It's safe to say AEW has turned out to be a formidable alternative to WWE by focusing on in-ring action and logical storylines. Plus, its consistent TV viewership and buy rates paint a rosy picture of the company's finances from the outside.
However, everything isn't as hunky-dory as it seems to be for AEW. Eight-figure investments into the video game section ensured the company remained in debt in 2020 and didn't turn any profits.
On top of that, with the crowds not in attendance for most of 2020, there was no revenue from ticket sales, and the promotion was dependent mainly on the television rights fees from TNT.
AEW President Tony Khan was recently profiled by Forbes, in which he delved into the finances of the promotion.
Despite the aforementioned issues, Khan sounded optimistic about making decent profits in 2021 due to AEW's upswing in pay-per-view purchases, fans returning to action, and the debut of their show, Ramage, on TNT in August.
The financial analysis of AEW by Forbes reads as follows:
The $43.75 million AEW received from TNT last year made up the largest share of its revenue, but that’s a rounding error compared to publicly traded WWE’s record $974 million in revenue in 2020. Still, AEW’s pay-per-view numbers and ticket sales are growing, and the new show will add to its coffers. Khan expects its wrestling division to be profitable this year, though an eight-figure investment in video game development will keep the company in the red for now.
AEW released its first game in February 2021
AEW released its first game earlier this year in February called AEW Casino. A free mobile gambling game, it has received a positive reception from fans.
Another mobile game, AEW Elite GM, is in testing and is scheduled to come out later this year. However, the most anticipated of the lot, the unnamed console game, is taking a little longer than expected.
AEW Champion Kenny Omega is also an integral part of the promotion's gaming division due to his in-depth knowledge of the business.
Are you excited about AEW's upcoming line-up of games? Do you like AEW as an alternative to WWE? Sound off in the comments section below.
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