WWE News: Vince McMahon Lost $842 Million Since Wrestlemania, But WWE Expected To Survive
Vince McMahon has endured a string of terrible WWE news, with the company’s stock tumbling and the CEO personally losing $842 million, but analysts believe the popular wrestling promotion will prevail.
Last week, it was reported that McMahon lost close to $360 million in net worth in a single day when the company’s stock tumbled more than 40 percent. The WWE has been plagued by some difficult developments, including a lower-than-expected television deal and a poor rollout of the WWE Network.
It was later reported that Vince McMahon’s total losses amount to $842 million dating back to Wrestlemania 30.
But Jim Varsallone, a Miami Herald writer considered to be one of the most reliable experts on the WWE, said the news wasn’t as bad as it was being presented. He noted that the NBCUniversal deal, which will allow the WWE to net about $150 million each year, is still a 70 percent increase from the previous deal.
Varsallone added that the stock market is a poor indicator of the company’s performance, as it can be notoriously volatile. On a longer time line the company’s stock is still trending upward, he wrote.
“Let’s look at WWE’s stock not just by last week’s dive but by a year’s time frame, the past 52 weeks,” he noted. “If you bought WWE stock, when it was at its low during the past 52 weeks, you purchased it in the $8 range.”
The WWE stock leveled off after its initial drop, and as the trading week started on Tuesday it was hovering around the $11.50 mark.
Varsallone said the WWE and its new WWE Network has even more potential when it starts its international push. And he noted that Vince McMahon is the perfect person to lead the organization.
“Mr. McMahon knows the pro wrestling/sports entertainment business. He has not only survived but succeeded over the long haul — even longer than cable television mogul Ted Turner,” he wrote.
“If something doesn’t work, Mr. McMahon will pull the plug. He did it with the XFL and bodybuilding. You learn from the mistakes, and any good business person has made mistakes.”
While analysts are nearly universally optimistic about the future of the WWE, not all share Varsallone’s assessment of Vince McMahon. After reports emerged that he lost $360 million in a single day, there were rumblings that investors were forming a plan to push McMahon out as chairman and CEO of the WWE.
