Dave Meltzer is reporting that WWE may only make around $2million profit from Crown Jewel after costs are factored in.
Speaking on Wrestling Observer Radio, Meltzer explained that from what he had read, he understood that WWE is set to only make a very small profit from the show.
In fact, some are reporting that the show could cost WWE up to $16million if the company caves to pressure and cancels it.
Dade Hayes of Deadline has an article up revealing the details of what pulling out of the Saudi Arabia deal could cost WWE in 2019. He wrote:
Eric Handler of MKM Partners maintains a buy rating on the stock, with a 12-month price target of $95. It closed today’s trading session at $83.98, down a fraction. Handler estimates a decision to delay or cancel the wrestling circuit’s November 2 “Crown Jewel” event in Saudi Arabia, or move it out of the country, could cause a $2 million-$3 million hit to fourth-quarter cash flow.
“WWE has been quiet,” he wrote. The Raw promotional tactic “leads us to believe management is exploring the possibility of moving the event outside the country,” he added.
Were the company to go beyond the Crown Jewel event and walk away from its 10-year, multi-platform partnership, the hit to 2019 operating income would range from $12 million-$16 million, Handler estimates. He called that “not an inconsequential number, but far less impactful than WWE’s new TV contracts” with networks including Fox.
Saudi Arabia’s Public Investment Fund took a minority stake in Deadline and Variety owner PMC earlier this year for a reported $200 million.
Several U.S politicians have called for WWE to cancel the show following the disappearance and alleged murder of U.S. based journalist Jamal Khashoggi in the Saudi Arabian consulate in Turkey earlier this week.
But both JBL and Randy Orton have come out in support of WWE holding the show in Saudi Arabia. It’s fair to say we haven’t heard the last of this.
Thanks to WrestleZone for the quotes.
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