5 Most bizarre things about the WWE release spree in 2021
Another April and another release spree in WWE. Last year's clearout in WWE saw several hundred employees lose their jobs or get furloughed.
It was unfortunate, but a lot of them seemed to bounce back. It may not be as hard for the superstars who get released this year as they may find employment faster than those who were let go last year.
There are a few bizarre things about the latest WWE release spree and in this article, we will be discussing them.
#5 WWE making "budget cut" firings despite being healthy financially?
According to Sean Ross Sapp from Fightful, Head of Talent Relations John Laurinaitis has been making calls to the talent stating "Budget cuts" as the reason for their release.
It was the same excuse last year, but there seems to be a split in opinion as to whether it was worse to release talent in 2020 or 2021.
While ticket sales have naturally been a hit on WWE's revenue, there are multiple other sources of income for the company. Not only are they in the midst of their big-money FOX-SmackDown deal, but they have various streams of broadcasting revenue.
The lack of Saudi Arabia shows may have been a hit to revenue as well, but the new Peacock deal (from NBC Universal) is estimated to be worth $1 billion - and it's only for exclusive Streaming rights in the United States of America. WWE's financial report from 2020-2021 read (via Business Wire):
"Operating income was $208.6 million, an increase of 79% or $92.1 million, driven by the substantial rise in content rights fees, which have a high incremental margin."
This is a huge indicator that WWE is making more money now than ever - even with the lack of live gate revenue. It seems bizarre to use budget cuts as an excuse to release talent.