WWE Contracts, '90-Day No-Compete Clause' Finally Explained by Former Champion in New Video

WWE is rumored to be going through roster cuts sometime soon, and one wrestler who went through that experience shined some light on how things play out.

Raj Dhesi, formerly known as one-time WWE Champion Jinder Mahal, resurfaced his video explaining why wrestlers are required to sit out for 90 days after being cut, even though "there is no such thing as a no-compete clause in WWE."

"When you sign a WWE contract, in the writing it states, 'WWE can terminate your contract with 90 days' notice.' So when you receive the phone call, it's them letting you know that in 90 days, your contract is cut," Dhesi explained. "They will pay you for the 90 days. That distinction is very important, because if it was a no-compete clause, you would not get paid for 90 days. For 90 days, you are still under WWE contract."

Dhesi went on to add that wrestlers who are cut are pulled from live events and shows to protect both themselves and the company from future liabilities such as injuries or misrepresenting the brand in any way.

"In my opinion, WWE paying you for 90 days is an incredible gesture," Dhesi said. "It gives you time to reorganize your life. You're not making moves out of desperation or anger, and it actually protects both parties."