By Jason Powell, ProWrestling.net Editor (@prowrestlingnet)
Additional details regarding the new media rights agreement announced today by AEW and Warner Bros. Discovery continue to trickle in. Sports Business Journal reports that it’s a three-year deal with an option for a fourth year. Although Variety.com listed the value as $150 million, SBJ has the estimated the deal to be worth $170 million annually, including the rights fee and other elements. Read more at SportsBusinessJournal.com.
Powell’s POV: The SBJ story also includes a note that WBD is keeping its equity stake in AEW, though the percentage of their stake is unclear. Tony Khan was asked about WBD’s ownership stake during a media call. At the time, he declined to confirm or deny aside from stating that he has total control of the company. SBJ’s listed length of the deal and the value mesh with what Puck reporter John Ourand previously reported.
Ok, so I know NOTHING about AEW’s business plan, finances, or expenses.
BUT this doesn’t sound like a lot of money when you break it down.
I would have to think the vast (80%?) of AEW’s income must be from TV money. No dig, but their ticket sales seem light and no one actually purchases PPVs anymore, right? So this has to be the bulk of what comes in the door.
They have a LOT of talent on the payroll (that has to be the top expense) plus other staff, production of the weekly shows, travel etc.- none of that can be cheap.
We all know the Kahns have DEEP pockets, so AEW doesn’t have to really do any better than break even (and for tax purposes it doesn’t even need to do that). I guess to me, at a high level, AEW still feels like a vanity project rather than a business. Which shouldn’t impact the fans enjoyment, unless one day Shad turns off the flow of cash, and then it might look more like the NWA.
I DO reaklly wonder how much WBD owns. Tony emphasizing he has full control tells me its in the 40% range.
I agree with a lot of what you wrote, but I don’t think Tony Khan declining to speak about their ownership stake says anything about the percentage.
No no, I didn’t mean it like that. I meant when he emphasized that he still has control, that sounds like WBD has a lot more than a 5% token investment. 40% obviously is a total guess 🙂