The real reason behind WWE talent releases amid rumors of company selling - Reports
Several top talents in WWE were released recently, as Aleister Black, Braun Strowman, Lana and others have been let go. These cuts have inevitably led to speculation as to why WWE would release these stars; after all, the company already made one wave of cuts less than a month ago.
John Laurinaitis then reportedly sent a text to the WWE locker room in which he stated that these moves were made due to budget cuts.
"Due to Budget cuts the following talent were released today: Braun Strowman, Lana, Buddy Murphy, Santana Garrett, Ruby Riott, and Aleister Black. - John Laurinaitis"
But there has been unsubstantiated speculation that the real reason behind these talent releases is that WWE is trimming its roster in preparation for a potential sale.
Wrestling journalist Dave Meltzer has addressed this speculation in the most recent Wrestling Observer Newsletter, where he shared what he believed to be the motivation behind the releases.
"The question with all the cuts week-after-week from a company making record profits is what is this all about?" wrote Meltzer. "It led to rumors of a company sale. While WWE has denied a sale is imminent, remember that UFC outright lied to its employees and denied publicly a sale when they were in the process of selling. However, for such a sale, there are major companies involved, and banks involved in credit and while everyone involved would have to sign NDA’s, certain things would leak out and nothing has."
Meltzer argues that none of the financial elements that are usually present for major acquisitions seem to have happened yet. As a result, a WWE sale probably isn't happening, at least not right now. Meltzer went on to explain his opinion about the hidden reason for the releases.
"The budget cuts just seem to be a way to increase profits by cutting talent Vince McMahon had decided he had no use for any longer," Meltzer continued. "Keep in mind that there will be expenses added in going on the road. While the Thunderdome set up cost considerably more than doing arena tapings, there is now going to be travel expenses, house shows (which have not been profitable prior to the pandemic) and other increased costs. So to keep profits at the level they’ve been and not hurt the stock price, cutting talent was the decision."
Meltzer stated that WWE, driven by the desire to maximize profits, cut wrestlers with expensive contracts to make up for the increased costs that are linked to the return of live fans.
WWE's massive roster might have played a role in these releases
Meltzer further noted that the company's roster was simply too big, so a move like this round of releases might have been inevitable.
"The reality is the company had signed up far more talent than it needed until last year to trying to keep people from AEW," Meltzer argued. "The mindset is clearly different right now in that regard."
At least according to Meltzer, these releases happened because the performers were successful enough to get paid a decent amount of money, but not quite successful enough for that amount of money to be justifiable in the face of WWE's increased costs on the horizon.
What do you think about Meltzer's argument? Sound off in the comments below.
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