to celebrate Chris Paul playing for my Clippers, here is some dave for the internet's largest kane fan forum
Weve got a few notes about some finances regarding the new WWE Network.
The 2012 budget for payroll is said to be about $20 million during the first year and $25 million in the second and third year. The production facility and technical equipment will run another $18 million a year. The satellite uplinking will cost $13 million for the year. Thats not including legal, marketing, affiliate costs, costs of developing programming, producing programming, etc. The budget weve heard for the first year would be $60 to $90 million.
Most of the income will be based on carriage fees. It depends on how much money they will be able to charge cable operators for the programming and how many will clear it. I know a lot of people see this as the latest flop, but the thing is, Vince McMahon has thought this was a necessity dating back to 2005.
The impetus of the idea came when the Raw contract expired with Spike and he put it out there thinking he was going to make far more in rights fees by bidding all the major cable systems against each other. But once Spike dropped out early and then announced they were canceling the show, TBS and TNT and everyone else but USA and WGN werent interested. WGN, because of low visibility and a lack of national clearance would have been a disaster. So they went to USA with a worse financial deal than they had on Spike to begin with because they had no leverage at all to negotiate a new deal.
At that point, McMahon realized that without television, pro wrestling at this level is dead. So he needed a safety valve in place, as he told people he was close to at the time that they cant ever risk a time when they arent on American television.
The problem isnt so much the network but the fact they are rushing it out there. Not only is there limited direction, but they still dont have enough people hired for it. People in key positions in charge havent been hired, and there are only four-and-a-half months to launch. I know of people who had been in talks and all passed on it, with one remarking that Vice President of the XFL may not be something you want on your resume. So they arent inspiring confidence, largely because of the apparent lack of long term vision. From what we understand, negotiations for clearances is going slow and in cable, the feeling is they are asking for too much and that WWE believes they have more leverage than they do.
I guess it depends on how much they can rally their fan base to pressure companies. The issue is timing. A lot of network start-ups have come in, gotten a certain level of rates, and the big boys, like ESPN, USA, FX, The Food Network, etc. are raising rates and they have leverage because consumers will revolt if they lose a station that is already popular. So there is not a lot of movement to spend more money, and raise monthly rates to consumers, particularly, as if youve noticed by our updates, that the number of people who are moving away from cable and satellite, while not gigantic, is now significant most months.
If they can get into 40 million homes and can get 20 cents per subscriber, they will be able to break even. And again, losing some money to establish it and the ability to grow homes from there is fine and is expected. Of course, they may not get anywhere that level of clearances, particularly if cable stations have their way and put them into a sports tier you have to pay extra for. Realistically, there are 3 to 3.5 million homes that watch Raw each week. The vast majority are happy with that and are casual fans, dont live and die with the product, dont watch the PPVs, etc. There are the 80,000 homes (remember that when we do North American PPV numbers, that includes Canada, which is more than 10% and Puerto Rico in domestic numbers) that watch PPVs, and probably a similar level number that have 24/7 InDemand and they will demand the station and pay for it on a separate tier for sure.
So youve got anywhere from 2.9 million to 3.4 million that may not care, or may not want to pay for it as a separate tier. The 24/7 Classics on Demand numbers consistently falling and never being all that large isnt a good sign when it comes to getting people to pay extra. Wrestling is very different now from the 70s, 80s and 90s. In those eras, the audience that watched wrestling was so much larger, and there were so many more casual fans who watched it every now and then, or were the closet fans who watched it often.
Now, you really dont have that audience. So if this is put on a singular paid tier on its own, like Showtime, its probably not getting 1 million homes let alone 40 million. As part of a tier and sharing, who knows? If youre comparing, the NBA Channel gets 22 cents, ESPN Classics gets 18 cents, and Foxs Soccer Channel gets 16 cents. So 20 cents is a heavy price, but even at 16 cents (per subscriber per month), and a WWE channel is going to be more popular in this country than a soccer channel, if they clear 10 million homes, thats revenue of $19 million per year and its a huge loser.
But companies that got there first at a time when cable companies are cutting back on funding may be getting better deals than those coming now when companies are thinking cutbacks. At 40 million homes, you arent far from break-even. At 60 million homes, you are talking a strong profit.
The NFL Network is currently in 56 million homes as an example. NBA TV is in 45 million homes. But those numbers will grow as time goes on and this network isnt about 2012, its about 2017 or 2018.
In the short-term, if they do pull the B PPVs on the station, even breaking even really isnt, because you have to figure in whatever profits they are losing on the PPV end. Thats hard to say because there are still the international markets. and we dont know if PPV will still be offered in North America for those who dont get the station. Or will they pull the PPVs to have their core audience make a lot of noise and try and force clearances. That PPV audience in the U.S. these days for a B show isnt all that large, but if mobilized, can still make a lot of noise.
As part of the launching of the network, WWE is dropping its 24/7 Classics on Demand service on either 12/31 or 3/31. Systems were told the former date on 12/12. But at least one system on 12/13 received word from WWE listing the service being dropped on 3/31. Ironically, this decision, sent to cable companies on 12/12, came just a few days after at least some cable companies had informed their subscribers that starting in January, the price for the service would be increased by $1 per month and that WWE had told them nothing about discontinuing the service, only the price raise.
If there was a theme coming out of TNAs Final Resolution PPV on 12/11 in Orlando, its that they need to get their PPV shows out of the Impact Zone.
This has now become a monthly theme where the PPVs have a dead crowd, and thus come across as minor league offerings. Exactly what the future is of the company on PPV when the first Hulk Hogan PPV match in five years can barely top 20,000 buys and when Eric Bischoff, the architect of the monthly PPV which has been the industry standard since the mid-90s, openly has said he thinks they should be doing four PPV shows per year.
A lot of people will complain about the constant using of the PPV to build up to things where the payoff comes on television for free. This was the prime example, as the main event was a 30 minute Iron Man match where TNA champion Bobby Roode faced A.J. Styles. After a very good match, the two were tied 3-3 and it was ruled a draw. This led to a rematch the next night, taped for Impact, where Roode won cleanly with a half Boston crab.
As counterproductive as this seems on the surface, the damage has already been done. Monthly shows are below 10,000 buys and theyve got no magic matches to build that are going to make any real difference in that number. Theyve over stipulated their stuff past the point of death, to where fans dont believe their stipulations so they make no difference. Theyve used PPVs as a tool to build free television, frequently, including this week, making people who paid feel like they were taken. Theyve made PPVs something you can miss without missing anything important. Final Resolution was better than a lot of their recent shows. Many of late have been average or worse at a time when they need outstanding and great word of mouth to even begin to turn things around. We had the smallest number of responses to any TNA show since they went monthly, which isnt a good early sign.
So given all that, television is the only major revenue stream and PPV is not, so if youre telling a story, you have to have the key points of the story before the audience that is watching, as opposed to doing it traditionally which is getting people to pay for the key elements. Those people paying are simply too small in numbers. And thats not going to change.
Terry "Hulk Hogan" Bollea filed his third lawsuit against ex-wife Linda Bollea, sometimes known as Linda Hogan, based on her book, "Wrestling The Hulk - My Life Against the Ropes," as well as a series of interviews she made in promotion of the book.
The lawsuit cites Linda claiming she was fearful she would wind up as a statistic, like Nicole Simpson, that Hogan had a sexual relationship with a male wrestler (Hogan talked about this claim in his own book, saying it was his good friend Ed Leslie and claimed it came from Linda's mother walking in on an encounter between Leslie and a blond haired woman and Linda's mother believing the blond haired woman was Terry).
In a radio interview with Matty P's Radio Happy Hour, Linda was directly asked if she believed Hogan and Brutus Beefcake (Leslie) ever had an intimate relationship.
"Wow, let me think about how to answer this so I don't end up getting a lawsuit. Well, a little bird told me yes."
"Miss Bollea's made enough of these outrageous allegations that it's time they stop," said Wil Florin, Hogan's attorney in an article in the St. Petersburg Times. "The only realistic way of making them stop is through the court system."
Leslie also claimed he has a lawyer drawing up papers and is going to be filing his own lawsuit against Linda Bollea over her statement.
Hogan did a TMZ.com interview and basically said that he filed the suit to stop her from lying, noting that they went through a nasty divorce, and at no point did she ever accuse him of physical abuse, nor of having a homosexual affair, and only now has told those stories to sell a book. Hogan said he would have no problem admitting if he was gay and was mad that Brutus Beefcakes teenage daughter had to hear that story going around. The notable thing about the Beefcake story is that Hogan brought up the story in his own book, stating that Lindas mother walked in on Beefcake having a sexual encounter with a blond woman and then claimed she saw Beefcake having a sexual encounter with Hogan. He also stated that if Linda hates him so much she should go back to using her birth name, Linda Claridge, instead of Linda Hogan and that his wife Jennifer is the real Mrs. Hogan.
The lawsuit mentions that Linda has been able to live a lavish lifestyle as a direct result of her former marriage.
Hogan had sued Linda on two previous occasions, and is in the middle of a third court battle with her regarding the terms of their divorce settlement, not including this case. In 2010, she was added to his lawsuit against Wells Fargo Southeast in which he claimed Wells Fargo failed to insure him to the degree necessary which forced him to lose millions in the lawsuit filed on behalf of John Graziano, who was severely injured as a passenger in a car driven by Hogan's son Nick. He claimed Wells Fargo Southeast contacted Linda about an umbrella policy and increased auto insurance coverage for all of his vehicles in 2002, and she turned down the increased policy.
He claimed in 2005, Wells Fargo again contacted Linda about taking out more insurance and Linda, both times failing to even inform Hulk, turned down adding to the policy.
He claimed Linda was at fault because she should have known there were two teenage drivers in the household. Even if he had signed liability for both, thus exposing him to individual liability in the event someone was injured in an accident by a vehicle driven by one of his two children.
He continued his lawsuit with Wells Fargo stating that at no time did they ever consult him personally, only his wife, to let him know that he needed more liability insurance.
On August 22, 2007, just four days before Nick's accident with Graziano, Wells Fargo again attempted to sell them broader insurance coverage to either Linda or Linda's personal assistant and either she or the assistant rejected adding to the insurance coverage.
Hogan took out a mortgage on his already paid for mansion to garner some of the money needing to settle the Graziano lawsuit after being on the wrong side of a 70/30 asset split in his divorce settlement.
Hogan also sued Linda in 2009 for stealing a toilet seat from their Bellaire mansion that he was to have ownership of based on the terms of their divorce settlement.
The two have also been in court over an interpretation of their divorce settlement. As part of their settlement, Hogan gave Linda 40% of all business that has to do with the Hulk Hogan name. Linda interpreted it as 40% of all gross income derived from the name while Terry interpreted it as 40% of all the profits derived from the name. The courts have ruled in favor of her every step of the way, but he keeps appealing.
The complete lineup for the 21st annual New Japan show on January 4th at the Tokyo Dome was announced this past week. The 11-match show, in order, has:
1. Davey Richards & Rocky Romero defending the IWGP jr. tag titles against Prince Devitt & Ryusuke Taguchi, the three-time former champions who Richards & Romero originally won the titles from on the 10/11 show at Sumo Hall.
2. Jushin Liger & Tiger Mask & Mascara Dorada & Kushida vs. Atlantis & Valiente & Taka Michinoku & Taichi in a flying Lucha Libre style match.
3. Kazuchika Okada vs. Nobuo Yoshihashi in a match of two wrestlers returning to Japan. Okada was with TNA, even though youd probably need a magnifying glass to find any remnants of him there. He had that run where he was with Samoa Joe, and then disappeared. Hes a good wrestler, but that matters less than ever before there. Yoshihashi has been in Mexico with CMLL for a long time.
4. Yuji Nagata & Wataru Inoue vs. Masakatsu Funaki & Masayuki Kono of All Japan Pro Wrestling. Funaki returns to New Japan for I believe the first time since he was a teenage sensation in the late 80s.
5. Masato Tanaka & Yujiro Takahashi vs. MVP & Shelton Benjamin. Tanaka and MVP have been feuding over the IC title that Tanaka took from MVP. Takahashi is aligned with Tanaka so the storyline is MVP called up a former friend from WWE to help him.
6. Giant Bernard & Karl Anderson defend the IWGP tag titles against former champions Satoshi Kojima & Hiroyoshi Tenzan. This matches up two of the longest reigning champions in the history of the title. Bernard & Anderson, who won the titles from Inoue & Nagata on June 19, 2010, are the longest reigning champions in the history of the titles. Kojima & Tenzans reign in 2000 and 2001 was the third longest (behind a Tenzan & Masahiro Chono reign in 2002 and 2003).
7. Hirooki Goto vs. Takashi Sugiura in a New Japan vs. NOAH singles match where the 2010 MVP and long-reigning GHC champion faces a New Japan perennial headliner.
8. Togi Makabe vs. Yoshihiro Takayama in another New Japan vs. NOAH match-up. Takayama is technically a free agent but is a regular on the NOAH shows.
9. Shinsuke Nakamura & Toru Yano vs. Go Shoizaki & Naomichi Marufuji. Another New Japan vs. NOAH match that features Nakamura, the next wrestler in line for an IWGP heavyweight title match, against Shiozaki, the current GHC heavyweight champion. Nakamura pinned Shiozaki in a singles match at last years Tokyo Dome show.
10. Tetsuya Naito vs. Keiji Muto in a New Japan vs. All Japan match. Muto returns to the New Japan Tokyo Dome show for the first time since 2009, when he had his last run as IWGP champion and dropped the title to Tanahashi in the main event. Naitos idol growing up is Muto. It looks like two straight years where Naitos role is to carry a big outside name, since last year he worked with Jeff Hardy.
11. Hiroshi Tanahashi vs Minoru Suzuki for the IWGP heavyweight title. Tanahashi goes for his record setting 11th title defense against the freelancer. This is Tanahashi 5th Tokyo Dome main event on January 4th tying him with Nakamura and Muto for the most January 4th Dome main events. You could make the argument that this is the Japanese equivalent of main eventing five WrestleManias.
The three-hour Slammy Award Raw on 12/12 did a 2.84 rating and 4.11 million viewers, one of the lowest rated Raw shows of the year. Id say its a pretty good message considering how much they pushed the show for the past few weeks that the audience was not into seeing an awards show, particularly since they know the award show is filled with joke awards. The Slammy Awards from last year did a 3.06 rating. This years show did a 2.98 in the usual two hours (down from a 3.22 last year over the final two hours) and 4.32 million viewers. Once again, the audience dropped from the second to the third hour, which should be very difficult given the viewer patterns of tuning in at 10 p.m. for 15 minutes and back at 11 p.m., plus the benefit of the people tuning in for the next show in the overrun. The number looks even worse when you consider the football game with the St. Louis Rams vs. Seattle Seahawks only did a 7.18 rating and 9.88 million viewers. Raw was only 7th for the night on cable. The male/female skew was 67.0% to 33.0%.
In the demos, the show did a 2.5 in Boys 12-17 (up 14%), 2.5 in Males 18-49 (down 7%), 1.1 in Girls 12-17 (up 83%) and 1.3 in Women 18-49 (down 32%).
In the segment-by-segment, the Holy Bleep Award lost 179,000 viewers. Keep in mind the first hour should show nothing but growth as people forgetting to tune in early should be consistently tuning in. Big Show vs. Wade Barrett and Pipe Bomb of the Year with Road Doggs return gained 237,000 viewers. Divalicious moment of the year with the return of Lita gained 244,000 viewers. The OMG Moment of the Year and HHH promo at the top of the hour when the show usually starts gained 604,000 viewers, but on a three-hour show, it should do that. Trending Star clips with David Otunga and Tony Atlas lost 349,000 viewers. Daniel Bryan vs. Dolph Ziggler vs. Cody Rhodes vs. Zack Ryder lost 188,000 viewers. Game Change of the Year with the Cena interview gained 464,000 viewers, possibly inflated because they teased Rock coming out at the end of the segment. Randy Orton & C.M. Punk vs. The Miz & Alberto Del Rio at the 10 p.m. slot lost 146,000 viewers. Its almost impossible based on viewer patterns to lose viewers in that slot. Maybe that happened twice all year so this was terrible. A-Lister of the year gained 55,000 viewers. Mark Henry interview and Sheamus kicking Jinder Mahal lost 288,000 viewers. Rey Mysterio announcing Superstar of the Year, which they built the whole show up for, lost 115,000 viewers and only did a 2.75 quarter. The overrun with Cena vs. Henry and the return of Kane gained 745,000 viewers to a 3.27.
With no major sports competition, Smackdown on 12/9 did a whopping 2.24 rating and 3.24 million viewers. The show placed 3rd for the night on cable.
TNA Impact on 12/8 did a 1.07 rating and 1.44 million viewers. The Seattle Seahawks vs. Philadelphia Eagles game did 6.58 million viewers which is really impressive given the limited penetration of the NFL Network. It was 13th on cable for the night.
The show did a 1.01 in Males 18-34, way above usual, but only an 0.79 in Males 35-49, way below usual. That probably speaks to the NFL, and perhaps rebuilding with newer guys on top that appeal to newer fans but older fans arent as interested in. But reaching any conclusions because one demo was way down one week is premature, and it is likely more just NFL competition.
In the segment-by-segment, Samoa Joe vs. Abyss gained 54,000 viewers and ended up being the highest rated segment on the show at 1.12. The in-ring interview angle with Pope & Devon with Matt Morgan & Crimson lost 13,000. Mickie James vs. Madison Rayne lost 108,000 viewers, so another aspect is James, who had been the companys biggest ratings draw the last several weeks, didnt do well this time. Gunner vs. Garett Bischoff gained 81,000 viewers. The James Storm/Kurt Angle in-ring along with Karen Jarrett telling Traci Brooks to lose and Devon and Pope backstage lost 27,000 viewers. Gail Kim vs. Brooks lost 25,000 viewers. The Jeff Hardy & A.J. Styles vs. Bobby Roode & Jeff Jarrett main event lost 26,000 viewers and ended at 1.03, which tied for the lowest rated segment of the show.