WWE: Fact Checking Forbes' Article On Vince McMahon
CLAIM: TV Rights Are $161M
The shares are flying both because WWE is seeking a new television contract, at more than twice its current rate of $160.9 millionI wish articles could get this right or at least be more specific. WWE is negotiating their domestic TV contract which was $105.9M in CY2013. Their international TV contracts were $55.0M in CY2013. Theyve already settled on the UK BSkyB deal which was rumored to be atthree times the previous five year agreement and starts in 2015 and the Germany deal with Tele 5 which starts in April 2014. I believe they are also working on their TV deal in India (currently on Ten Sports) which has historically been coming up in 5-year increments (2005-2009, 2010-2014) so would likely start in 2015.
VERDICT: True but misleading
CLAIM: WWE May Going To Sell
persistent speculation that McMahon, who has never articulated a clear succession plan, might sell the company outright (both Comcast and the Madison Square Garden Co. have been rumored as suitors)I also wrote about the 5 types of companies that would want to buy WWE but I dont believe its going to happen at all. It's a game for the financial press to fill space and for analysts to justify they're so optimistic without any facts to back it up. Anyone who has studied the ego of Vince McMahon knows that selling his company isn't part of his game plan.
VERDICT: Baseless speculation
CLAIM: WWES Emerging Markets Are $116 Million Annually
Another bright spot: Emerging market revenue has been growing at a 7% annual rate for a decade in countries such as India, Mexico, and even South Korea, to $116 million last year.That is a baffling claim. WWE made $507,970,000 in revenue in 2013. $391,663,000 was in North America. Thats leaves $116,307,000 so apparently theyre considering UK, the WWEs largest international market as part of the emerging market revenue. I think its questionable to consider a market that WWE has been in for more than twenty years to be emerging.
Analysis by Chris Harrington
So, in the past five years, Latin American (Mexico) revenue has dropped from $12.4M to $6.6M, UK was essentially been flat, other Europe/Africa/Middle East (which include India) is down 5%. The only area of growth is Asia Pacific and thats going to be pretty diverse: Japan, South Korea, Philippines, China, etc. Its a move that directly endangers both WWEs PPV revenues ($82.5 million) Domestic PPV revenue in 2013 was $66.9M. International PPV revenue was $15.6M. Again, since youre talking about the launch of the domestic WWE Network, it would make more sense to differentiate between the two.