Report: WWE's Vince McMahon Set To Lose $375 Million On XFL
Money troubles potentially on the horizon...
On January 30, WWE suddenly announced that they had fired Co-Presidents George Barrios and Michelle Wilson. A succession plan was not in place for the pair and no one within the wrestling world was expecting the corporate shake-up.
This caused WWE's stock price to tumble by 26% from $62.30 per share to $46.08, shaving off over $1 billion from the company's value.
Vince McMahon's money troubles look set to continue, however, with the imminent launch of the XFL on Saturday. Dave Meltzer reported on Wrestling Observer Radio that Vince McMahon has set aside $300 million to fund the XFL for its first two and a half seasons. He will then raise additional funds once the league is active, meaning he is set to lose approximately $375 million by the end of April 2022.
McMahon is then hoping TV ratings for the league will be good enough to earn TV deals worth over $125 million per year, which would allow him to recoup his losses. However, whether or not Vince will succeed in doing so remains to be seen, as while pundits admit there is a chance the XFL could succeed, they hold serious concerns about the league's viability.
Meltzer said: "Vince has earmarked $300 million and that’s going to get them through two and a half seasons and he’ll put up more later...The way this whole thing is structured is Vince is probably going to lose $375 million over the next three years on this league, and he will and he knows and that’s what he’s going to do. And then at the end of the three years, the idea is he will be able to get television deals that will total over $125 million a year which would cover his losses and then he’s okay."
This caused WWE's stock price to tumble by 26% from $62.30 per share to $46.08, shaving off over $1 billion from the company's value.
Vince McMahon's money troubles look set to continue, however, with the imminent launch of the XFL on Saturday. Dave Meltzer reported on Wrestling Observer Radio that Vince McMahon has set aside $300 million to fund the XFL for its first two and a half seasons. He will then raise additional funds once the league is active, meaning he is set to lose approximately $375 million by the end of April 2022.
McMahon is then hoping TV ratings for the league will be good enough to earn TV deals worth over $125 million per year, which would allow him to recoup his losses. However, whether or not Vince will succeed in doing so remains to be seen, as while pundits admit there is a chance the XFL could succeed, they hold serious concerns about the league's viability.
Meltzer said: "Vince has earmarked $300 million and that’s going to get them through two and a half seasons and he’ll put up more later...The way this whole thing is structured is Vince is probably going to lose $375 million over the next three years on this league, and he will and he knows and that’s what he’s going to do. And then at the end of the three years, the idea is he will be able to get television deals that will total over $125 million a year which would cover his losses and then he’s okay."
Written by Aidan Gibbons
Editor-in-Chief of Cultaholic.com Twitter: @theaidangibbons