PWTorch.com - MAR. 24 IN HISTORY: PWTorch Cover Story

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MAR. 24 IN HISTORY: PWTorch Cover Story - WCW TV cancelled

Mar 24, 2015 - 2:48:42 AM

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This Day In Wrestling History - March 24

Date: March 24, 2001 (14 years ago)

Feature: This issue of the PWTorch Newsletter dated March 24, 2001 included a Cover Story on the cancellation of WCW Nitro and Thunder, one of the most significant headlines in Torch history. This was soon followed by WWE buying out WCW, which has been a significant talking point on WWE TV building to this year's WrestleMania.

PWTorch Back-Issue: PWTorch Newsletter #646.

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PWTORCH #646 Cover Story
March 24, 2001
HEADLINE: Nitro and Thunder cancelled, WCW for sale again
SUBHEADLINE: USA, Fox, and others are moving quickly to fill the programming gap being created by cancellations

By Wade Keller, Torch editor

A major chapter in the history of professional wrestling is about to come to a close. Since WTBS was a small, low-powered station in Atlanta, Ga., pro wrestling has been one of the top rated programs on the network. Along with Atlanta Braves baseball, it was the popularity of Championship Wrestling from Georgia that helped make TBS a marketable superstation that expanded to cable systems across the country.

Last week Jamie Kellner, new head of TBS, TNT, and all channels under the AOL/Time Warner conglomerate, decided to cancel Nitro and Thunder effective at the end of this month. Brad Siegel sent a memo to WCW employees on Friday announcing that he will be holding a company-wide meeting on March. 28 at the Power Plant to discuss their futures.

The cancellations are being spun publicly as a desire by Kellner to create an image for TBS and TNT as "upscale networks," an image that WCW is not consistent with. Had Fusient been willing to and able to purchase WCW under the original terms as agreed to in January when a press conference was held to announce the sale, WCW would still be carried on TBS and TNT despite the "image conscious" Kellner.

The Fusient deal falling apart in recent weeks was the final straw for AOL/Time Warner. WCW lost over $60 million last year and was on pace to lose tens of millions this year. WCW's ratings had sunk enough that it no longer justified the operating losses it was incurring.

Kellner and WCW head Brad Siegel had options. Jerry Jarrett had put together an investment group to purchase WCW in case the Fusient deal fell apart. There had been an official conference call weeks ago involving Siegel, Jarrett, and others representing both sides, paperwork was subsequently exchanged, and a formal purchase proposal was submitted last week - at the same time that Kellner was pulling the plug.

WCW is not technically being shut down at this point despite the cancellations of Nitro and Thunder since AOL/Time Warner still wants to sell it. If a deal cannot be reached within a few months, it would likely be quietly shut down rather than restarted since Kellner has made it clear wrestling does not fit his programming plans.

Fusient, Jarrett, and the WWF are the top three contenders to purchase WCW, with the WWF being the leading contender right now.

What is being offered for sale by AOL/Time Warner has drastically changed in the last week. No longer are the valuable TV timeslots on TNT and TBS part of the deal. That drastically reduces whatever value WCW had to a prospective buyer.

The WWF is negotiating to purchase WCW with the intent of running WCW as a separate full-time promotion, but air it likely on TNN or perhaps a weekend UPN slot. The goal would be to rebuild WCW into a profitable full-time promotion and see if it could become a sustainable second promotion . Then eventually the big money would come with an eventual "combined PPV" down the line featuring, perhaps, Goldberg vs. Steve Austin, Kevin Nash vs. Triple H, and The Rock vs. Scott Steiner would likely do record-breaking business.

All of the major cable trade journals have covered the WCW situation over the past several days. The New York Times ran a story on Monday. "The cancellation of wrestling marked the end of an era at Turner Broadcasting, the cable franchise built by Ted Turner, in part, on the strength of professional wrestling," said the Times article. "It was the first programming move made under Mr. Kellner's leadership and is an indication that he wants to attract more affluent viewers to TNT and TBS."

Although the landscape of the business is being radically changed by WCW programs being cancelled, the wrestling landscape won't be desolate for long. If the WWF purchases WCW, it will lead to perhaps one of the most memorable angles of all time with the "dream WWF vs. WCW matches." Meanwhile, it is almost a lock that by the fall season, if not within a couple of months, at least one new national promotion will be launched to pick up where WCW left off.

USA Network, despite its public stance, is extremely interested in airing pro wrestling again. Despite doing strong ratings without wrestling, their attitude is that with WCW out of the picture, it changes the entire ballgame since there is proven to be an audience for a second promotion - when run competently.

Fox has a similar attitude. Eric Bischoff and Fusient executives had a conference call with Fox last Friday and at least one more meeting scheduled this week. Fox is extremely interested in wrestling programming, at least on FX and possibly on the main broadcast channel. Bischoff and Fusient are trying to purchase what's left of WCW and basically pick up where they left off on Fox as soon as possible.

Meanwhile, there continue to be indications that at least two other major players have prospective new national promotions in the works. WCW's cancellation has left a gap, and many people believe it's a profitable gap to fill.

Bischoff appeared on Nitro via telephone on Monday to announce that next week's program on March. 26 will be the final episode of WCW on Turner networks. He said he was booking a "Night of Champions" to give the wrestling tradition on Turner a proper sendoff. The scheduled main event is Booker T vs. Steiner.

With Bischoff the leading contender to purchase WCW, Siegel left him in charge to oversee the final two weeks of WCW programs. Johnny Ace, who had been Bischoff's messenger and appointed booker since the Fusient deal was announced in January, ran the show at the PPV Sunday and Nitro this week.

Bischoff sounded like a defeated man during his brief phone speech on Nitro. He has been through a roller coaster ride the past three months, and now is in the midst of further negotiations to try to purchase what he once thought he had, plus he has to find a new cable home.

Over the last two weeks WCW began exercising escape clauses in wrestlers' contracts who have 90 day rollover clauses. Those with guaranteed contracts will continue to get paid. If the company is purchased, they will likely be part of the deal, although some contracts may prohibit a transfer to new ownership. If WCW is not sold, or if only the name is sold, Time Warner will have to continue to pay wrestlers for the duration of their guaranteed contracts or offer them a buyout which would include a lump sum and the rights to wrestle and earn money elsewhere.

WCW's demise will at least temporarily make it a one-horse race in the U.S., but inevitably there should be at least one major new competitor soon.