WWE is no stranger to making big bucks, often flaunting new financial milestones. However, with their television deal with Fox set to expire in 2024, the sports entertainment giant’s strategy may have to adapt.
The renewal of WWE’s domestic television rights is scheduled for later this year, with a new contract set to take effect in September 2024. In light of this, Vince McMahon has returned to the company’s board of directors to explore the possibility of selling to a distribution partner who can bear the high cost of sports media rights. Despite Comcast being a potential buyer, the media company has not shown interest in purchasing WWE.
Adding to the complexity of the situation, recent reports indicate that should Fox decide to renew their contract for “WWE SmackDown,” it would not come at a higher rate than the current $205 million per year.Forbes SportsMoney editor, Mike Ozanian, tweeted a screenshot from a Wells Fargo Securities analysts’ presentation, revealing this development.
With negotiations set to begin in 2024, WWE will need to reevaluate its strategy to ensure continued financial success. Whether this involves exploring new distribution partnerships or adapting to a potentially lower renewal rate with Fox remains to be seen.
As WWE approaches another pivotal timeframe, speculation surrounding the potential streaming options for SmackDown continues to circulate. While various choices are available, none offer the same prominent real estate or network exposure as Fox. It’s essential to note these developments as the company navigates its next move.
During the negotiations with Fox in 2018, Rupert Murdoch, the chairman of Fox Corporation, reportedly exploited the McMahon family’s insecurities. He allegedly stated that Comcast/NBC Universal was “embarrassed” by WWE’s product. His son, Lachlan Murdoch, added that the deal “would herald the marriage of the Murdochs and the McMahons, rebel outsiders who had built media empires.”
With WWE’s domestic television rights due for renewal later this year, what the company will do with its television product remains to be seen. The possibility of a new owner by September 2024 adds another layer of uncertainty to the mix.
