Recently, PWMania.com reported that actor and former WWE writer Freddie Prinze Jr. claimed to have a source at ESPN who indicated that the network is dissatisfied with its WWE pay-per-view deal.
According to Dave Meltzer in the latest Wrestling Observer Newsletter, ESPN should have anticipated that they would not turn a profit on this deal. Meltzer pointed out that the financial figures never added up, and it should have been clear that the deal would result in a loss. He stressed that there was no way for ESPN to recoup its investment and that anyone unable to recognize this must not understand basic math.
Meltzer also mentioned that Peacock lost money on the deal as well. He explained that the objective was to attract attention to the brand while the service was still being developed, acknowledging that the losses were not solely due to WWE but were partly a result of that strategy.
Furthermore, Meltzer emphasized that this is not just a WWE issue; it extends to TKO as well. Both WWE and UFC are brands associated with rights that are very difficult to break even on, but they are perceived as valuable for the recognition and branding they provide. Ultimately, Meltzer advised that if streaming services hope to make a profit from these brands, they should first take a closer look at the numbers.
