8 Potential Consequences Of WWE's Rumoured Budget Cuts
1. The End Of WWE Studios
WWE Studios has not been a profitable endeavour for the company over the past decade. From 2007-2015, the project brought in $125.4 million revenue, but this manifested as -$48.6 million in OIBDA (the figure WWE use to determine profit). It turned a minor OIBDA of $400,000 in Q2 2017, but it hasn't been a financial success at all, and revenue recently dropped a further 8% on last year.
The company say that WWE Studios is an important part of their corporate identity. By keeping it going, even at a loss, they're able to present themselves as something closer to the entertainment empire Vince McMahon dearly wants them to be, rather than a simple wrestling promotion. Without it, that part of WWE's image wouldn't die, but it'd be severely diminished.
This seems to outweigh the financial loss at the moment, but this may not be the case if WWE choose to make budget cuts. They'll naturally seek to close as many different profit haemorrhages as possible, and while Vince seems proud of WWE Studios and the stack of atrocious movies it has produced, it may bite the dust if things get desperate.