Talking dollars and sense
As “The Million Dollar Man” Ted DiBiase used to say, “Everybody has a price,” and Floyd Mayweather’s supposedly is $20 million. During a news conference yesterday at Staples Center in Los Angeles, that was the figure the boxing star said — and WWE confirmed — he was getting for his match with The Big Show at WrestleMania XXIV.
I and many other industry observers believe that figure is about as exaggerated as Hulk Hogan’s claim that Andre The Giant weighed 700 pounds when he slammed him at WrestleMania III. Mike Tyson, who had significantly more of a mainstream presence than Mayweather has, was reportedly paid $3.5 for appearing as a special referee at WrestleMania XIV in 1998.
Dave Meltzer of The Wrestling Observer said that he has heard that Mayweather was getting either $5 million or $2 million plus a percentage of the profits. That sounds more like it, but, hey, this is pro wrestling, and worked heights, weights and attendance figures just come with the territory.
Moving on to some financial figures that are not exaggerated, 2007 was a very good year for WWE. In fact, it was the company’s best year ever in terms of total revenue.
WWE took in $485.65 million last year. That surpassed the previous high gross of $456.04 million in the 2000-01 fiscal year, according to last week’s Observer. WWE’s 2007 profit of $52.10 million was the third-highest in company history.
It proves that while interest in pro wrestling isn’t nearly as high as it was during the Monday Night War era, the bottom line is that the bottom line is doing quite nicely.
Comments
Saw Floyd Mayweather this morning on on CNN . Not sure if it was file footage or had something to do with WWE announcement. But anyway he was at a large gathering "making it rain" . (said to be 50's & 100's). We could stand a shower here in Hebron.
Posted by: jack in hebron | February 26, 2008 8:17 PM
It's interesting that 2007 was a good year financially for WWE, because I thought the product was rather poor for the most part. That's not to say that I thought it was all bad, but I think 2006 was better as a whole and the ratings from that year reflect my sentiments. What factors made 2007 more profitable?
Posted by: Sean | February 26, 2008 9:13 PM
I don't understand how a company that makes 500 million dollars can't afford to book hotel rooms and pay for airline tickets for their talent roster.
Posted by: John | February 26, 2008 10:59 PM
I would think as the recession deepens and people need more escapist entertainment, the WWE will actually do better in 2008. I think they are one of those industries that people turn to in bad times to escape having to constantly think about those times. We shall see...plus I am really interested in Wrestlemania this year. Been awhile since I really cared. I want to see what happens with Hardy and Flair.
Posted by: Walter Hollman | February 27, 2008 2:12 AM
"I don't understand how a company that makes 500 million dollars can't afford to book hotel rooms and pay for airline tickets for their talent roster."
WWE does pay for the plane tickets.
I also believe that they pay for the hotel rooms in some cases, like WrestleMania weekend.
Posted by: chris | February 27, 2008 2:51 AM
Kevin, you might know this and you might not, but you'd know better than I. When you break down the WWE's $500 million, how much is from PPVs, from Raw or Smackdown, investments, XFL, et cetera. In WWE's PPV-centric world, I'm curious how much of their income comes from their $40 evenings versus the rest of their product.
RESPONSE FROM KEVIN ECK: I don't have the breakdowns for the year, but have some numbers for the fourth quarter (final three months of 2007). All figures are in millions.
PPV: $19.8
House shows: $30.9
Arena merchandise: $4.6
Television rights fees: $23.8
DVD sales: $19.8
Licensing: $9.4
Magazine revenue: $6.0
WWE.com revenue: $4.2
Shop zone revenue: $7.7
"See No Evil" profit: $3.1
Posted by: Ethan | February 27, 2008 1:48 PM
Are you telling us that "See No Evil" actually made a profit? I don't know whether to laugh or cry.
Posted by: Ruben | February 27, 2008 4:07 PM
Are you telling me my eyes are correct? Here I thought Shawn Michaels was lucky to way 185 but Howard Finkel kept telling me he was 250lbs. Darn you Finkel!!!!
Posted by: Eric | February 28, 2008 10:51 AM