FOX to lose more than $150 million this year through deal with WWE to air SmackDown – Reports
If a recent report is anything to go by, FOX is incurring massive losses on their broadcasting deal with WWE SmackDown.
The blue brand found its new home on FOX in 2019 when the two parties struck a five-year deal that runs until 2024. SmackDown's ratings have been steady for quite a while, but things haven't been as hunky-dory as they appear to be.
As per Wrestling Observer Newsletter's Dave Meltzer, broadcasting SmackDown was a big loss-making venture for FOX. Meltzer cited a Morgan Stanley report which suggested that the network paid $196.7 millioforto WWE as broadcasting fees in 2020-2021 and closed the year with sizable losses of $134 million.
They estimate that losses will only get worse, with a projection of $155.6 million in losses for the 2022-23 season and $166.9 million for the 2023-24 season.
FOX’s deal is $221.1 million for the payment to WWE for Smackdown in 2022-23 and $234.3 million in 2023-24.
As for 2021-2022, FOX paid WWE $202 million and ended up losing as much as $145 million. The Morgan Stanley report noted that there weren't enough wrestling fans to justify FOX shelling out such big amounts for SmackDown's rights.
FOX's losses from WWE SmackDown could worsen
The future, too, looks bleak as FOX is projected to lose even more money from their deal with WWE. The company could lose an estimated $155.6 million in 2022-2023 and an even bigger number of $166.9 million in 2023-2024.
It's safe to say that despite fan interest being at an all-time high, wrestling has struggled to connect with the casual audience. Moreover, since mainstream stars like John Cena and The Rock seldom appear anymore, casual viewers don't have a lot of incentive to tune in to watch the company's weekly shows.
Vince McMahon has told the WWE board that unless he has direct involvement as executive chairman from the outset of a strategic review, he won’t support or approve any media-rights deal or company sale.
- WSJ https://t.co/I4GL73YVuZ
It's also worth noting that it's not just SmackDown's deal with FOX but RAW's deal with the USA Network also expires next year. The new set of broadcasting rights negotiation process is one of the main reasons why Vince McMahon made his comeback as the promotion's Executive Chairman. It remains to be seen what the future holds for the company, as they are also strongly pursuing a sale.
Do you think FOX and SmackDown will renew their broadcasting deal once it expires? Sound off in the comments section below.