U.S. Senators Ask WWE NOT to go to Saudi Arabia
As reported yesterday here at Rumbling Rumors, the tension is high in regards to The #CrownJewel PPV.
Not just because of the matches, but, because of the political overflow going into the event.
As noted in the previous article (Which you can read HERE)
The political blowback to WWE could be bigger than once thought.
As I predicted in my article, many politicians are having misgivings about the said event (Mainly due to the McMahon’s relationship with the Trump Administration.) and are asking WWE to rethink their strategy.
In a recent interview with Independent Journal Review (IJR) many US Senators sounded off on this topic:
Sen. Bob Menendez (D-N.J.) said,
“Private enterprise is private enterprise, different than a governmental entity, but because (Linda McMahon*) is part of the president’s cabinet, it falls into the grey area where the administration really should give it some thought and maybe even prevail upon them not doing it.”
(* For those of you who may not know, Linda McMahon is Vince McMahon’s Wife and head of the Small Business Administration.)
Sen. Chris Murphy (D-Conn.) who is not only the Congressman for the home state of WWE, but also has a seat on the Senate Foreign Relations Committee said,
“This is a brazen assault on the freedom of the press and a slap in the face to the United States, if this murder occurred as it seems it did,”
Sen. Murphy also added, “I’d hope that they (WWE) would be rethinking their relationship with the kingdom especially with respect to events coming up in the next weeks like (WWE Crown Jewel),”
WWE’s 10 year, multi-million-dollar deal with Saudi Arabia is not only on shaky ground with US Senators, but, with WWE Superstars as well.
Bryan Alvarez, of Wrestling Observer stated that, “I can’t speak for everybody on the #WWE roster. I haven’t talked to everybody on the WWE roster but I can tell you that a lot of the people that are scheduled to go to Saudi Arabia, they don’t want to go to Saudi Arabia.”
Doubling down he also said, “In fact, the majority of the talent doesn’t want to go to Saudi Arabia but the office wants to go to Saudi Arabia and they have shareholders that they want to please with all of these big money deals that they’re getting. We’ll see what happens.”
The shareholders are the ones who are at a real risk right now.
In the past two weeks, WWE stock has lost over $1 Billion, it went from being (Roughly) $91.00 a share to just over $82.00 a share. As of October 13 it sits at a little over $85.00 a share.
Financial analyst Chris Harrington took to twitter and said what he thought of the WWE stock prices.
(Authors note – the image attached to the tweet was omitted.)
So, according to his model, the stock would drop from a (Roughly) $90.00 a share and become $60.00 on average. One can deduct from that that the average price for WWE stock would become (Roughly)
$75.00 on average with a +/- 5% margin.
That means the superstars may not get the kind of money they are/were making on past deals such as PPV’s, TV appearances, etc.
Take for example, Brock Lesnar who stands to make a small fortune from Crown Jewel.
Lesnar, Michaels, Cena, and other performers of that magnitude stand to make a great deal of money just for walking in the door at Crown Jewel.
If the stock projections stick, then you may be seeing a lot LESS of such legends as The Undertaker, Sean Michaels, etc.
Even though WWE has many lucrative ventures going on right now, if the Saudi Arabia situation explodes, then WWE may not be able to recover.
There is a rumor floating around that WWE has a backup plan if they DO cancel Crown Jewel, but, sadly not much is known about it.
The question WWE has to ask itself is simple:
If WWE goes to Saudi Arabia, could their stocks go lower?
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