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WWE News
WWE News: WWE planning to cut at least $20 million; Linda McMahon explains why (w/VIDEO) Nov 10, 2008 - 12:29:55 PM
As detailed in our previous report on Linda McMahon's interview with FOX Business, WWE's expanded international touring that is expected to take place over the next two years will come at the expense of $20 million in budget cuts.
McMahon told FOX Business that the company recognized adverse economic issues in the second quarter, then did a full-scale budget review in the third quarter. The effect in the current fourth quarter (October - December) has already been realized with several WWE wrestlers released within the time WWE reported earnings last week.
"We are reviewing all of our business lines, going through all of our operational structure, and we will take out $20 million in our operational cost structure next year," McMahon said. "We are looking at at least $20 million operational cost structure cut."
Asked how WWE can still get fans to open their wallets for live events during tough economic times, McMahon said they are careful not to run too often in a market and manage ticket prices.
"We are looking across all of our revenue lines and we're going to keep costs down to manage that bottom line," McMahon said.
Caldwell's Analysis: There will most likely be rounds of behind-the-scenes cuts in terms of office employees and overall budget expenditures that we won't see publicly. The visible public cuts will be WWE wrestlers released from their contracts.
WWE has decided international touring is the future of the company, which means fewer wrestlers will be needed to fill out chartered plane trips to Europe, China, and India over the next one-to-five years.
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