Former WWE Wrestlers To File Class-Action Lawsuit Over Network Royalties?

Are wrestlers being unfairly compensated for network footage?

Ever since the WWE Network launched in February 2014, fans and wrestlers alike have shared concerns over how it would affect the pay levied toward current and former talents. According to the Wrestling Observer Newsletter, those concerns have now reached the point where several unnamed former superstars are considering litigation against the company. Prior to the debut of the Network, WWE's DVD and Blu-Ray releases were a major part of the company's merchandise revenues, and any and all talents - past and present - featured on the documentaries, events, and more were compensated with royalties. For the past two years, the network has archived the bulk of its documentary features while also streaming all past PPV (and many television) matches, rendering the DVD and Blu-Ray releases largely obsolete. The company still profits off the footage by charging a monthly fee for the network, but apparently, the wrestlers don't feel as if the compensation they're currently receiving is fair. Another pay issue involving the network - though one that's less likely to be brought up since it exclusively affects current talent - involves Pay-Per-View revenue. Wrestlers performing on Pay-Per-View events receive a bonus based upon overall buyrates and their position on the card, but WWE's PPV business has been eradicated by the network. Like with DVD and Blu-Ray releases, there is much speculation that individual payoffs for special events have dropped over the past two years. This isn't the first time WWE has been sued over royalties from clips aired on television - both Doug Somers and the family of Eddie Gilbert have attempted to change the way WWE does business via litigation. Those cases were not fruitful, but the paid subscription structure of the WWE Network makes this potential lawsuit an entirely different enterprise.
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Scott Fried is a Slammy Award-winning* writer living and working in New York City. He has been following/writing about professional wrestling for many years and is a graduate of Lance Storm's Storm Wrestling Academy. Follow him on Twitter at https://twitter.com/scottfried. *Best Crowd of the Year, 2013