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Plain and simple, WWE is overvalued and makes revenue based on past value from past long term deals that were signed on speculation.
WWE used its past success and ratings to secure long term deals, deals in which go up due to inflation of markets.
Without these deals WWE is in the red, they have low ratings, don’t profit much on the network, and attendance is low.
They are in a Bubble, where the company is overvalued by the TV deals, and we saw with the Dot Com Bubble, Bubble’s burst.
They can’t keep getting these 5 year deals every 5 years with the decline their having now. The last TV deals in 2018 even though most probably disagreed with, made sense to executive's.
When that Bubble bursts and they lose the TV deals, if the company doesn’t have their problems fixed with attendance, TV ratings and PPV fixed, they will be forced to sell, fold or take a massive loss to the point where the company has to make massive cuts to survive.
WWE used its past success and ratings to secure long term deals, deals in which go up due to inflation of markets.
Without these deals WWE is in the red, they have low ratings, don’t profit much on the network, and attendance is low.
They are in a Bubble, where the company is overvalued by the TV deals, and we saw with the Dot Com Bubble, Bubble’s burst.
They can’t keep getting these 5 year deals every 5 years with the decline their having now. The last TV deals in 2018 even though most probably disagreed with, made sense to executive's.
When that Bubble bursts and they lose the TV deals, if the company doesn’t have their problems fixed with attendance, TV ratings and PPV fixed, they will be forced to sell, fold or take a massive loss to the point where the company has to make massive cuts to survive.