Fox’s interest in WWE programming could sharply drive up price for NBC Universal to retain rights, but ownership interest complicates story

The TV future of WWE isn’t just in play, but so is its ownership. With WWE’s TV rights deal with NBC Universal expiring next year, WWE’s negotiations with potential suitors is heating up. Fox is interested in not just TV rights, but potentially becoming an owner, reports Dave Meltzer of the Wrestling Observer.

WWE’s live programming draws enough viewers to be the reason USA Network remains a top five cable network. Without WWE, USA Network – once the king of cable ratings – drops into the next tier. The prestige of being a top network is important for not just pride reasons, but for setting the price USA can charge cable distributors to provide their network to subscribers.

The reports indicate Fox is interested in airing Raw on its broadcast network, including Monday Night Raw live on Monday nights, not one of its cable networks. (This would mean Raw moving back to a two-hour format, as Forbes noted in its story that Fox affiliates air local news five days a week starting at 10 p.m. ET, the slot now filled by Raw’s third hour.)

While Fox being interested in airing WWE programming is a huge story, being a potential suitor for ownership is an even bigger deal. Financial analysts have looked at WWE’s strategy as showing signs of positioning themselves to look attractive to an outside buyer.

The appeal of WWE’s programming isn’t just viewership (it averaged a 2.07 rating in 2017), but the year-round audience it attracts with original live programming every week. With more and more viewers switching to on-demand programming, most of which is evergreen and can be binge watched, WWE programming keeps viewers coming back to the network it’s on week after year throughout the entire year without an off-season.

When UFC was purchased by WME-IMG last year for $4 million, eyebrows were raised in the pro wrestling industry. Top executives in WWE, surely including Vince McMahon, suddenly imagined the value of WWE might be higher than they previously figured. When Vince McMahon launched Alpha Entertainment, it only further fueled rumors he was setting himself up for something post-WWE in terms of an ownership role.

Keller’s Analysis: What a Fox purchase could mean for WWE’s corporate structure would be another aspect of this story to watch. Would it follow a similar pattern as WCW did after Ted Turner purchased it from Jim Crockett Jr., employing executives without prior knowledge of pro wrestling? Would Fox insistent on Vince McMahon remaining in a position of full power at least creatively? Where would that leave Shane McMahon, Stephanie McMahon, and Paul Levesque? Another question is whether Fox would want an even more “family-friendly” version of WWE’s PG product and how it would affect the violence and language and tone of the program overall. NBC Universal is likely to fight hard to retain the programming. WWE having a second major suitor is the key to scoring a TV rights fee increase, and these reports indicate that looks to be the case this time around.