Dogland
October 16, 2018
The Browns rough game is just one game and other excuses
October 17, 2018
One year ago, shares of World Wrestling Entertainment, Inc. were trading at $22.54. The domestic equity markets as a whole have been trading directionally positive since this time, but WWE has had a 12-month window that has seen an influx of revenue (and future revenue) thanks to one-off events and two new contracts for the broadcast of their weekly shows. As recent as October 1, 2018, shares of WWE were trading north of $96, more than four times where it was a year prior. But things changed shortly thereafter.1
One of the revenue streams in 2018 came in the way of a one-time pay per view in Saudi Arabia called “The Greatest Royal Rumble.” A glorified house show, a sizable chunk of WWE talent traveled to Jeddah, Saudi Arabia and performed in front of a mix of Saudi royalty and civilians. It was the kickoff show for what was to be a 10-year partnership between WWE and the country of Saudi Arabia.
A focus should be given to “sizable chunk”, however, as the female talent was not allowed to perform due to Saudi laws while other wrestlers like Sami Zayn opted against the trip due to his Syrian descent. The company received quite the scrutiny for its decision to partake in an event despite its impact on employees, but positioned it as a step toward progress and cashed what has been reported to be a check between $40 and $50 million.
Being a publicly traded company can bring plenty of success, but as one specific company is finding out, it also comes with its share of conflicts. Growing earnings and rewarding shareholders is paramount, but at what point does a company have to turn down a substantial payday for the greater good?
We’re about to find out.
“Crown Jewel” was set to be the second Saudi-based event to take place later this year in an effort to help forward what has been dubbed “Vision 2030”, where Saudi culture — specific to things like, say, women being allowed to drive — would be more in line with more developed nations. In providing WWE with a sizable pay day, what the company had to do in return over the weeks leading up to the first event was nothing short of propaganda as commentators oozed compliments of the country, it’s “vision”, used terms like “the jewel of the middle east.”
Fast forward to October of this year and things have taken a turn. The country of Saudi Arabia is embroiled in suspicion that a journalist, Jamal Khashoggi, was murdered and dismembered in the Saudi Consulate in Istanbul on Oct. 2.
The wrinkles are as follows:
- Turkish authorities claim Khashoggi was murdered by Saudi agents, allegations that have been denied.
- Crown Prince Mohammed bin Salman is claiming innocence.
- Donald Trump is claiming to have no financial ties to the country, despite saying “They buy apartments from me—they spend $40 million, $50 million,” as recent as 2015.
- Linda McMahon, wife of WWE Chairman Vince McMahon, is currently in President Trump’s cabinet.
- Connecticut Senator Chris Murphy recently said he hopes WWE “would be rethinking their relationship with the kingdom especially with respect to events coming up in the next weeks like [WWE Crown Jewel].”
This all has made for an interesting time in WWE Land. In addition to the current (male) roster, WWE has inked what appears to be short-term deals with retired talent like Rey Mysterio, The Undertaker and Shawn Michaels that would lead to headline-making matches for the Saudi event. Brock Lesnar is returning for at least one night. They’ve added what has been dubbed the “World Cup” that will serve as a tournament-based set of matches to determine the “best in the world”, a bracket that has had much of its programming over the last two weeks be filled with qualifying matches. The investment in this event has been evident. The catch: Reports have began to circulate saying that talent is no longer on board with making the trip.
WWE issued a spineless press release stating that it was “monitoring the situation”, and spent Monday and Tuesday Night referencing “Crown Jewel” with zero mention of Saudi Arabia. If a viewer had just decided to tune in for the first time this week after taking a few months off, the event could have very well been in Detroit, Michigan and they would not have known.
WWE tickets & live events removed the show. Other places on the site list Crown Jewel but have removed references to Saudi Arabia. https://t.co/avhUXx5zjN https://t.co/N2lNMg91dT
— Dave Meltzer (@davemeltzerWON) October 14, 2018
Major League Baseball is embroiled in its postseason, with plenty of drama of its own. The NBA tipped off its 2018-19 season on Tuesday night, with the Cavaliers playing Wednesday evening in Toronto, and will be on nightly until the season wraps up in the middle of June. The NFL is in full swing with increasing viewership and a shit ton of points being scored. Yet here is WWE as the subject of stories ranging from Sports Illustrated to the Wall Street Journal, where a company that has thrived on fictional story lines is suddenly given a harsh dose of reality.
As all the feel-good moments of Smackdown’s 1000th show fade into history, the WWE has a decision to make — and they’re running out of time.
Tickets for the event are set to go on sale this Friday.2
This Week in #ActualSportswriting:
- “What Happened to the Houston Astros’ Hacker?” by Ben Reiter (Sports Illustrated)
- “Finding the Nikola Jokic Blueprint” by Jonathan Tjarks (The Ringer)
This Week in #ActualNonsportswriting:
- “Teens are being bullied constantly on Instagram” by Taylor Lorenz (The Atlantic)
- “Daniel Radcliffe and the Art of the Fact-check” by Michael Schluman (The New Yorker)
