From the WWE Rumor Mill: WWE to get a 30% increase in TV rights
What's the story?
WWE has been a highly profitable company, for a while now. Things are only going to get better for the world's leading sports entertainment promotion, with a 30% hike in TV rights fees.
This news was first published by the Wrestling Observer Newsletter. We thank Larry from 411Mania for the summary.
In case you didn't know...
WWE has several sources of revenue. The primary one still comes from TV rights, thanks to the USA Network and various partnerships around the globe. The other sources are merchandise sales, live event tickets, Network subscriptions, etc.
There has been much speculation that WWE is potentially up for sale. Some of the rumoured buyers have been Disney, Facebook and even FOX.
Ahead of the sale, if it indeed does happen, WWE received some very good news, if rumours are to be believed.
The heart of the matter
How will this hike of 30% in rights fees come about, you rightfully ask?! The simple answer is FOX has already offered UFC a 20% hike in their TV rights, and analysts believe that the same will happen for WWE and their own Network, as well.
Moreover, the stock price is at an all-time high with sale rumours, and experts believe that this will reflect in their TV deal too.
Moreover, the rights fees from India have doubled from $35 Million to $70 Million already.
Additionally, according to Wrestling Observer Newsletter at least, WWE is looking to sell their airing rights to other streaming services in addition to their present TV deal leading to greater revenue.
What's next?
The potential sale of WWE has been in discussion for a while now. We'll have to wait and watch, to gauge if such is indeed the case or not, in months that follow. We'll have more information up, as it is made clear in due course of time.
Author's take
I hope Vince McMahon retains ownership of the company. In the wrong hands, who knows what the future of the company will be?
Think WCW and the AOL-Time Warner merger...
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