WWE's financial state revealed following mass releases of 2021
WWE has released talent in bulk since the pandemic started in 2020 and there always seemed to be one excuse: budget cuts. While news of the talent being released in batches made headlines, several cuts happened behind the scenes. In a new report following WWE's financial reports for Q4 of 2021, the picture paints an entirely different story.
Unlike many companies during the pandemic, Vince McMahon's pro wrestling-sports entertainment juggernaut appears to have been in a healthy condition. The broadcast deals they struck with various networks across the globe ensured that they were able to have hundreds of millions of dollars flowing in. The use of the Thunderdome venue also kept costs low, with live touring often being an expensive affair.
Brandon Thurston of Wrestlenomics reported on Twitter via the WWE earnings report that in 2021, the company achieved a record $1.095 billion following all the releases and budget cuts.
Q4 documents have released!
WWE reports $1.095 billion in revenue for full year 2021, its highest ever.
Net income for the year is $180.4, also a new annual record for profitability, as expected, and blowing away analysts expectations.
corporate.wwe.com/investors/news…
According to Thurston, the company also exceeded expectations with its operating income for live events, which returned for the first time since early 2020.
Is WWE now more profitable than ever?
Net income: The most final measure of profitability.
2021 is easily WWE's most profitable year ever. Even when adjusting for inflation, 2021 was nearly twice as profitable as the best "Attitude Era" years of 1999 and 2000. https://t.co/gtUXGOqoP1
The answer is yes, the sports entertainment juggernaut is now the most profitable it has ever been. All the controversial decisions about shifting to PG have been laid to rest as it has made the company far friendlier to sponsors, and it has perhaps influenced the overall revenue they get from the broadcasting deals across the globe, and not just the lucrative SmackDown on FOX deal.
The tweet posted above points out how even after taking inflation into account, WWE is almost twice as profitable as any of the money-making years in the Attitude Era, an era often considered the golden era of wrestling for many.
Unfortunately, these new financial findings could mean that the company will continue its trend of cutting superstars in bulk. The promotion appears to be prioritizing the happiness of their investors over all others, and it will be interesting to see if this approach continues in the next few years.