Wrestling mogul Vince McMahon retires: This is how he built the WWE Store
Professional wrestling is a type of entertainment that is difficult to classify. When US authorities demanded the rating on legal grounds, the sector preferred to define itself as a form of “sports entertainment,” based on choreographed fights whose outcomes were predetermined with the goal of following a particular narrative.
Although there are hundreds of companies dedicated to wrestling Across the world, no one comes close to the power of World Wrestling Entertainment, or WWE. The company’s largest shareholder, Vince McMahon, has just announced his retirement from his duties at the company. At 77, he made way for his daughter Stephanie, son-in-law Jean-Paul Levesque (known for his role as a fighter under the name Triple H) and a senior CEO named Nick Khan who joined the company thanks to his impressive career as a broadcasting rights negotiator.
McMahon net worth is estimated at $2,400 millionbut the fact is that if we look back about forty years, his situation was similar to that of many other promoters devoted to the world of fishing pressure. He inherited the family business, which was essentially a regional association operating in and around New York, but it was clear to him that television could give him the opportunity to expand his horizons.
So McMahon began making deals with out-of-state television stations, violating an unwritten rule that every wrestling company should be limited to operating in its territory. He believed in the power of television so much that he came to pay for the broadcast of its contents. Everything went from a local company to a national company.
In parallel, it has invested all its assets in improving its product, with the expectation that the leap forward in terms of production and talent will definitively distinguish it from the rest of the regional leagues. That’s when he shot to legendary stardom Hulk Hoganwho turned it into his first sword.
The rest is history. The charisma and popularity of Hogan McMahon helped combine the New York feud with a growing number of shows across the country. rely on strength small screenHe succeeded in making his product the most popular wrestling league in the United States. In the 1990s, his business had already begun to internationalize, in the midst of new talents such as El Enterrador (Undertaker).
What McMahon did not count on was the challenge posed by Ted Turner, the creator of CNN and responsible for channels such as TNT or TBS. Whoever would later head the Warner conglomerate saw the potential of wrestling and pulled out his checkbook to create World Championship Wrestling or WCW. McMahon’s rivalry with WWE was particularly intense from 1995 to 1999, but it ended between 2000 and 2001, when WCW’s popularity began waning and WWE exploded to the point of becoming a cultural phenomenon. Turner ended up selling the company to McMahon, who also got rid of ECW, the third most popular league at the moment, to establish himself as a reference company.
The bubble WWE in the late ’90s had a lot to do with McMahon’s commitment to more violent, fun, and dangerous content. It was his new review Dwayne Johnson “The Rock” (The Rock), who today is one of the biggest stars in Hollywood, or Stone Cold Steve Austin, as well as Triple H himself, who today holds positions in the company’s top management. McMahon used this moment to declare himself and become a billionaire.
In the early 2000s, the promoter brought back old stars such as Ric Flair also Shawn michaels But he continued to prove his ability to find new talents, so CambricAnd the Brock LesnarAnd the John Cena also Roman times. Without a doubt, the 21st century has been the global expansion of WWE, which has television deals almost all over the world.
But the key came less than a decade ago, when McMahon made two major moves: On the one hand, I expected bubble Content platforms, create their own channels (WWE Network) ended up being sold in 2021 to NBC for more than 1,000 million; secondly, He cleverly renegotiated broadcasting rights In the United States based on the fact that its programming is much more profitable than elite sports, to the point that it is broadcast continuously throughout the year and achieves a very satisfying audience for a lower cost.
If we add to this Millionaire agreement with Saudi Arabia To celebrate two annual $100 million events, it seems clear that McMahon’s retirement moment couldn’t come in a better financial position for the company. And that despite the fact that Since 2019, a competitor has emerged: All Elite Wrestling, or AEW, which funds another billionaire, Tony Kahn.And it managed to create a stir by signing some WWE Superstars who were seduced by a less demanding schedule of events.
McMahon’s departure was accelerated after a confidentiality agreement he had signed emerged as a former employee with whom he was to have an extramarital affair. The billionaire chose to step back from his executive duties and, after making several televised appearances in recent weeks, has now announced his retirement.
Anyway, McMahon’s daughter is taking over a global entertainment company that comes from restrictions record profit levels for three consecutive exercises. Even the pandemic hasn’t affected WWE’s business, since her clever commitment to television has greatly reduced the weight of the box office, which was once the main source of income. Investors reacted positively to the delivery of The company’s share has increased by more than 30%. over the past year.
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