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World Wrestling Entertainment
Inc. and hundreds of results come up per year. That is normally a good thing for over-wrestling promoter-violence is part of its schtick. But the coincidence of this keyword and a vital new customer, Saudi Arabia, has put the company into a delicate situation.
WWE's stock is up 276% in the past year in large part due to a lucrative new television-rights agreement, but a deal with the Gulf Islands is also a big boost to its bottom line. Analysts believe it is worth around $ 40 million to $ 45 million a year for 10 annual events held in Saudi Arabia. WWE's projected operating income this year is just over $ 100 million, according to FactSet. The event is part of the country's image by Prince Mohammed bin Salman.
The alleged murder of journalist Jamal Khashoggi has prompted mass defections from another Saudi showcase, the Future Investment Initiative dubbed "Davos in the Desert." Canceling was tricky for some business leaders who covet Saudi business, but pulling the plug on the follow-up to the Greatest Royal Rumble will be a dicier for WWE.
It is not just a bottom-line consideration. The White House 's Strenuous Efforts to Rape the Cause of the Khashoggi affair and the closeness of WWE' s main shareholders to President Trump would make cancellation an overtly political statement. WWE co-founder Linda McMahon is a member of the Trump administration. Keeping the wrestling event for Nov. 2 is symbolically important for Washington and for Riyadh.
WWE Chris Harrington of Wrestlenomics Radio says Chris Harrington of Wrestlenomics Radio. Conversely, some stars anonymously told Sports Illustrated that they were uncomfortable performing in Saudi Arabia.
Influential Republican senator Lindsey Graham has weighed in, saying "there should be a break." Even a delay of the Nov. 2 event would send a political message, though, and could breach WWE's lucrative contract. The company would only say that it is "monitoring the situation."
The timing of the controversy could not be more unfortunate for WWE, but the odds seem to be towards the event and pointing to the progress it is said to be in the audience (though not to wrestle in the ring.) WWE is fortunate to have a domestic audience, which is more important than any other country in the world.
However uncomfortable, the show must go on.
Write to Spencer Jakab at [email protected]
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