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The story from the WWE side is that he was coming back sooner than later, likely for something to lead to Mania, but that things hit a snag in the negotiations. From what we were able to gather, the snag, which may be a mild term, consists of a number of things. His early 2012 return may be out the window.
The two key problems in the negotiations were that Jericho was looking for a part-time deal that would allow him to do outside entertainment projects without the company having veto power over them, and if he was to get the projects himself, he didn’t want to cut the company in a percentage of those outside deals. Vince McMahon claimed that it was the company that made him a star and should be entitled to a cut, like they get from all wrestlers, and they also insist on being able to control what outside projects talent does. This stems from when Jericho did the short-lived TV game show “Downfall,†even though McMahon did not want him doing it and it was a problem at the time. There are also major creative issues between the two sides that is said to be a major part of the issue.
NBC Universal pays WWE big money for Raw and Smackdown, they consider all talent that appears on the television show to be NBC Universal talent. They don’t want them appearing for rival networks, at least in prime time. They don’t know the difference between a full-time guy and a guy maybe working a short period of time and leaving. So that is part of the reason WWE insists on having veto power over outside gigs. With Jericho on Dancing With The Stars, WWE was able to tell NBC Universal that Jericho was no longer with the company, and also they never promoted him on the show.
While this was going down, what drove the chasm wider is that Jericho was not put in the WWE 12 video game as a character while other former characters like Randy Savage, Batista, Shawn Michaels and Brock Lesnar are in. Jericho took being left out of the game as a personal insult and felt he was greatly disrespected.
The situation behind it is that Batista and Michaels, when their wrestling contracts expired, signed merchandise deals going forward. One source said he was offered such an agreement, but others noted that part of the issue he’s not happy with is that Michaels and Batista have these agreements and the belief is they are not giving the company a cut of their outside projects.
Lesnar nor Savage’s family have no such an agreement and are in the video game. In the case of Savage, THQ made a deal with Savage’s family and WWE didn’t nix it, because at this point to nix having Savage in the game would come off horribly, and they’ve had Savage in other games at this point anyway. Lesnar was originally a THQ idea, and more complicated than any other because they needed Dana White to sign off on it but the advantage is that the UFC game is also a THQ product and the deal was done. With Jericho, THQ did not pursue Jericho because of the expectation that he would sign a WWE merchandise deal and thought WWE would be working it out, so that’s why he fell through the cracks as far as being in the game. Apparently Jericho wasn’t aware of any of this. Having said that, even though Jericho wrote what he did about saying he would never wrestle in WWE again and the snag is legit, and that he’s really not in the video game which costs him a lot of money, some in WWE are still of the impression he’s coming in for a Mania season short run and have not been told differently. The wrestlers are under the impression that he’s not coming in.
Wrestling Observor
Maybe they worked things out, maybe not. This just makes January more interesting