It’s no secret that wrestling fans are subjected to ridicule. However, the fear of judgment may have cost NBCU a lucrative relationship with WWE.
By now, it’s old new that WWE sold SmackDown’s television rights for $1 billion. However, the Hollywood Reporter released new details on specifics of the deal. And it sounds like Rupert Murdoch, Fox’s patriarch, used some boardroom trash talk in his pitch.
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To help corral Vince McMahon and his wrestling conglomerate, Murdoch told a room full of WWE suits that NBCU was “embarrassed by your product.” Murdoch pointed at NBCU and USA Network’s conservative ad campaign to boost SmackDown and reportedly said he and Fox would fully embrace WWE. Murdoch went on the promise Fox would air SmackDown promos every day of the week along with weekly studio show on FS1.
Murdoch’s pitch, combined with a hilarious budget, lead to a billion dollar handshake.
The boardroom gamesmanship is certainly remarkable. McMahon and Co. have reason to resent NBC after being lowballed in 2014 negotiations. In their current deal with NBC, WWE makes $130 million per year for both RAW and SmackDown.
But if the best revenge is success, then WWE just dunked all over NBCU.
NBCU is now paying $265 million just to keep their RAW rights. If that wasn’t silly enough, Fox will pay WWE just over $200 million per year for SmackDown. When this new deal goes live in 2019, WWE will be making nearly four times as much on RAW and SmackDown than they do today.
This is exactly why WWE’s stock is up over 60 percent in the month of May. Things come full circle when we remember that WWE’s lackluster 2014 deal with NBCU sent shares tumbling into single digits.
NBC joins the likes of Ted Turner, Eric Bischoff, the Federal Government and a slew of old wrestlers who tried Vince McMahon and lost. Sure, the 72-year old carny tycoon has taken his lumps (Lex Luger, the XFL) but there’s something to be said for McMahon’s track record.
With both RAW and SmackDown took care for the foreseeable future, Mcmahon and WWE’s next adventure will likely be even more ambitious. With rumors of bring pay-per-view, even WrestleMania to broadcast television, there is clearly a plan in place for WWE to become America’s chief source of entertainment. We can chuckle at the idea now, but history has taught us to never underestimate Vince McMahon.
