Alleged reason behind the latest WWE releases revealed
It's chopping-block season in WWE again. Since April 2020, numerous superstars have been released. It's this news that makes the headlines, not the cuts that take place behind the scenes.
November 4th was another dreadful day as there was a whole new and fresh set of releases. Nia Jax and Keith Lee turned out to be the most shocking names on the list, and many fans seem to be wondering about the reasons behind all this.
It's no surprise that the reason given to the talent by John Laurinaitis via email was the same one used since April 2020 — "budget cuts."
Budget cuts were cited as a reason for the releases in an email from John Laurinaitis
The latest releases in WWE have received more criticism because the 2021 third-quarter financial results were announced not too long ago, where the company had declared an increase in revenue.
WWE's revenue for the third quarter of 2021 was $255.8 million, a 15% increase ($34.2 million). The company's return to touring seems to have paid off as revenue growth was driven by higher ticket and venue merchandise sales.
Why does WWE keep insisting on budget cuts despite revenue growth?
Yes WWE is already quite profitable. If "budget cuts" is the cited justification for cutting talent, it's a euphemism for cutting costs to become more profitable. But cutting talent was the inevitable result of WWE stockpiling more talent than needed.
WWE's revenue wasn't hit as badly during the COVID-19 pandemic as many other companies. The lucrative broadcast deals helped them stay afloat.
Meanwhile, the company's revenue stream continues to grow. The record 39% increase in digital video views during the third quarter in 2021 also tells the story. WWE Live Events in North America also attracted the "highest quarterly average" attendance in more than a decade.
It's not known why WWE constantly cites budget cuts as the reason behind its talent releases. While there were undoubtedly some surprising names on the latest list, none have been more shocking than this past June and July when Braun Strowman and Bray Wyatt were released.
In some cases, such as Gran Metalik's, WWE simply granted his release request. However, the hoarding of talent before 2020 led to this inevitable outcome.