10 Tough Questions WWE Must Ask Itself In 2021
3. Should House Shows Even Return?
While television rights fees have soared in recent years, effectively failure-proofing WWE for the foreseeable future, the company's live event business was in the muck prior to March's global shutdown.
Q1 2019 saw WWE generate a net loss of $1.8 million on live events. Adjusted OIBDA (WWE's preferred profit-measuring metric) sat it $9.4 million for the year, down significantly from the previous year's $20.5 million. In Q1 2020, the last quarter that allowed for house shows and regular touring event, live event losses grew to $2.6 million. The pattern is clear.
With attendances down, markets burned out, and house shows delivering increasing cash losses, the argument that WWE should never return to a traditional touring schedule is compelling. It sucks for those who want to see WWE rolling through their town, but the reality of 2020 is that not hitting the road contributed towards the promotion becoming more profitable than ever before, saving them millions in logistical and transportation costs.
Vince McMahon and Nick Khan's eye for the bottom line will likely prompt them to at least pull back on live events once the global health crisis eases.