The WWE and Their Money

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The WWE and Their Money

This article is an insight into the money world of the WWE. WWE’s revenue in the last 12 months was approximately $400 million, with a net profit of approximately $277 million.

 

In February 2008, WWE announced a 50 percent increase in stockholder dividends for all shares not owned by the McMahon family, this decision boosts the quarterly dividend from $0.24 to $0.36 per share.

 

This shows how WWE were and are moving from strength to strength and showing that they are looking after the people who hold the shares.

 

Wrestlemania 23 attracted 80,000 fans to Detroit last year and made 1.2 million buys which set new records for the WWE. This helped to expand the company so much that they now have offices in Australia, Japan, and China.

 

The WWE have set contracts up with various companies including Mattel (2010) and My Network TV being in the top sections. Below are some figures I found for magazine and home video allowances for 2006 and 2007 in thousands,

 

 

 

2006

 

                                    Balance at beginning       Costs and expenses        Deductions         End

 

Magazine allowance         $4,602                          $20,555                         $20,465           $4,512   

Home Video                   $2,920                          $10,198                         $9,301             $3,817

 

2007

 

                                    Balance at beginning       Costs and expenses        Deductions         End

 

Magazine allowance         $4,076                          $23,472                         $22,740           $4,808

 

Home video                   $8,510                          $17,669                         $19,557            $6,662

 

 

 

As is shown, the WWE are losing money in magazines but gaining a healthy profit in home video.

Below is a list of the Board and are in commanding order.

 

 

 

 

 

Vincent K. McMahon

Vincent K. McMahon is the co-founder of World Wrestling Entertainment, Inc, has served as Chairman of the Board of Directors and the board of directors of its predecessor entities since 1980. He is Chairman of the Executive Committee. Mr. McMahon and Linda E. McMahon are husband and wife.


Linda E. McMahon

Linda E. McMahon is the co-founder of World Wrestling Entertainment, Inc., has served as its Chief Executive Officer since May 1997, and was President from May 1993 through June 2000. She is a Director and a member of the Executive Committee.


Lowell P. Weicker, Jr.

Gov. Lowell P. Weicker, Jr. has been a Director of World Wrestling Entertainment, Inc. since 1999 and is Chairman of the Compensation Committee. Mr. Weicker served as Governor of the State of Connecticut from 1991 to 1995.

He served as a United States Senator representing the State of Connecticut from 1970 to 1988. Gov. Weicker also serves as a director of Compuware Corporation, HPSC, Inc., Phoenix Mutual Funds, Medallion Financial Corp. and UST Inc.


David Kenin

David Kenin has been a Director of World Wrestling Entertainment, Inc. since 1999 and is a member of the Audit and Compensation Committees. Since January 2002, Mr. Kenin has been Executive Vice President of Programming, Hallmark Channel.

Mr. Kenin is the former President of CBS Sports. Until 1994, he was Executive Vice President of USA Networks and after that, he was the general partner of Kenin Partners, a consulting firm.

 

Joseph Perkins

Joseph Perkins has been a Director of World Wrestling Entertainment, Inc. since 1999. Mr. Perkins was a pioneer in the television syndication of wrestling matches starting more than 40 years ago. He is President of Communications Consultants, Inc.


Michael B. Solomon

Michael B. Solomon has been a Director of World Wrestling Entertainment, Inc. since August 2001 and is a member of the Audit and Compensation Committees. Mr. Solomon is Managing Principal of Gladwyne Partners, LLC, a private equity fund manager.

Prior to founding Gladwyne Partners in July 1998, Mr. Solomon was affiliated with Lazard Freres & Co. LLC. Mr. Solomon joined Lazard Freres in 1981 and became a Partner in 1983.

 

Kevin Dunn

Kevin Dunn has been a Director of World Wrestling Entertainment, Inc. since August 2008 and has served as WWE’s Executive Vice President, Television Production, since July 2003.

In his current position running WWE’s pivotal television business, Mr. Dunn manages WWE’s television and production facilities, including a team of approximately 165 people that produce five hours of fresh prime-time television programming each week for U.S. networks and nine hours of original programming for markets in 130 countries, as well as content for DVDs, pay-per-views, and video on demand.

 

Frank A. Riddick III

Frank A. Riddick has been a Director of World Wrestling Entertainment, Inc. since August 2008 and is Chairman of the Audit Committee. Mr. Riddick is a consultant to TowerBrook Capital Partners, L.P. (“TowerBrook”), a New York and London– based private equity firm.

Mr. Riddick is a director of GrafTech International Ltd. Prior to joining TowerBrook, he served as President and Chief Executive Officer of Formica Corporation, a manufacturer of surfacing materials used in countertops, cabinets, and flooring from January 2002 to April 2008.

Mr. Riddick served as President and Chief Operating Officer of Armstrong Holdings, Inc. from 2000 to 2001 and as Chief Financial Officer at Armstrong and its subsidiaries from 1995 to 2000.


Jeffrey R. Speed

Jeffrey R. Speed has been a Director of World Wrestling Entertainment, Inc. since August 2008 and is a member of the Audit Committee. Mr. Speed has served as Executive Vice President and Chief Financial Officer for Six Flags, Inc., the world’s largest regional theme park operator, since April 2006.

Prior to joining Six Flags, Mr. Speed spent approximately 13 years with The Walt Disney Company, most recently serving from 2003 until 2006 as Senior Vice President and Chief Financial Officer for Euro Disney SAS, the publicly-traded operator of the Disneyland Resort Paris, which is the number one tourist destination in Europe.


Donna Goldsmith

Donna Goldsmith has been a Director of World Wrestling Entertainment, Inc. since November 2008 and has served as WWE's Chief Operating Officer since December 2008.

Prior to becoming COO, Ms. Goldsmith served as Executive Vice President of Consumer Products overseeing WWE's global Merchandise, Licensing, Book and Magazine Publishing and DVD businesses as well as WWEShop.com, the company’s e-commerce website. Ms. Goldsmith worked for the NBA before joining WWE in July 2000.

Below is the WWE’s roster and the earnings for each talent as you can see some have special treatments and perks.

 


Batista: $813,000 (First class flight tickets paid for every week)
Big Show: $1,000,000 (Base salary)
Candice Michelle: $64,000
Carlito: $319,000
Chavo Guerrero: $206,000)
Christian: $396,000
Edge: $704,000
Funaki: $124,000
Gene Snitsky: $292,000
Gregory Helms: $277,000
John Cena: $1,743,000 (First class flight tickets, hotel accommodations, and ground transportation paid for every week)
John Layfield: $786,000 (Five star hotel accommodations paid for every week)
Jerry Lawler: $204,000 (First class flight tickets, hotel accommodations, and ground transportation paid for every week)
Jillian Hall: $52,000
Johnny Nitro: $143,000
Jonathan Coachman: $175,000
Kane: $851,000 (First class flight tickets paid for every week)
Ken Kennedy: $133,000
Lilian Garcia: $90,000
Maria: $41,000
Mark Henry: $300,000 (Base pay)
Matt Hardy: $322,000 (Missed over $70,000 of pay due to firing)
Matt Striker: $43,000
Melina: $155,000
Mickie James: $72,000

Randy Orton: $711,000 (First class flight tickets paid for every week)
Rey Mysterio: $414,000
Shawn Michaels: $1,045,000 (First class flight tickets, hotel accommodations, and ground transportation paid for every week)
Shelton Benjamin: $366,000
Steven Richards: $94,000
Torrie Wilson: $260,000
Triple H: $2,013,000 (Allowed the personal use of company jet (10) times per year. First class flight tickets, hotel accommodations, and ground transportation paid for every week)
Undertaker: $1,811,000 (First class flight tickets, hotel accommodations, and ground transportation paid for every week)
Viscera: $130,000
William Regal: $225,000

 

 

 

Below are the Figures in millions from 2008, figures in brackets are what the WWE has lost. Again big profits are shown all across the board.

 

In Millions of U.S. Dollars
(except for per share items)

Quarter Ending
Dec 31, 2008

Quarter Ending
Sep 30, 2008

Quarter Ending
Jun 30, 2008

 

 

 

Operating Activity

 

 

Net Income

45.4

31.8

26.6

 

Depreciation/Depletion

13.1

9.5

6.2

 

Deferred Taxes

6.6

( 1.0)

( 0.8)

 

Non-Cash Items

33.6

27.5

20.7

 

Changes in Working Capital

( 62.4)

( 50.1)

( 49.6)

 

Total Operating Activity

36.2

17.7

3.1

 

Investing Activity

 

 

Capital Expenditures

( 26.6)

( 19.8)

( 15.6)

 

Other Investing Cash Flow Items, Total

48.3

38.9

49.7

 

Total Investing Activity

21.7

19.1

34.1

 

Financing Activity

 

 

Financing Cash Flow Items

1.1

1.1

0.9

 

Dividends Paid

( 81.4)

( 60.9)

( 40.5)

 

Issuance/Retirement of Stock, Net

7.1

7.0

5.2

 

Issuance/Retirement of Debt, Net

( 0.9)

( 0.7)

( 0.5)

 

Total Financing Activity

( 74.1)

( 53.5)

( 34.8)

 

Foreign Exchange Effects

 

Total Cash Flow (Net Change in Cash)

( 16.2)

( 16.7)

2.3

 

Cash Interest Paid (Indirect Format)

0.4

 

Cash Taxes Paid (Indirect Format)

16.7

 

 

Hopefully this article has been of some help and helped you to recognise what sort of money it takes to run the WWE.

 

Robin.

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