Network defends $325 million WWE partnership amid criticism from analysts
Summary
– Dave Meltzer questioned ESPN’s $325 million-per-year WWE deal on Wrestling Observer Radio
– ESPN issued a statement saying the partnership “started strong” and is performing well
– Debate continues over whether WWE’s presence on ESPN Unlimited is financially sustainable
ESPN is pushing back after reports suggested that its massive WWE streaming deal may already cost more than it’s worth. During Wrestling Observer Radio, Dave Meltzer analyzed early data from ESPN Unlimited’s partnership with WWE and estimated the network’s return falls well short of its $325 million annual investment.
Based on recent subscriber growth tied to WrestlePalooza, Meltzer claimed that the platform generated roughly $35 million yearly in revenue directly from WWE content. “They’re spending $325 million a year for $35 million a year of revenue coming from having these WWE events,” Meltzer said, calling it “a very bad number.” He added that ESPN is likely betting on long-term growth, aiming for a larger subscriber base.
In response, ESPN issued a short but confident statement via Steven Muehlhausen: “Things are going well and we have started strong. We don’t provide the viewership specifics, but things have been going well.” The company did not directly address Meltzer’s financial breakdown, focusing on overall performance and momentum.
While ESPN insists the WWE partnership is off to a positive start, Meltzer’s analysis raises legitimate concerns about the network’s long-term strategy. The success of ESPN Unlimited will depend on sustained subscriber growth and whether WWE’s fanbase can drive enough engagement to justify the hefty price tag.
The real test of ESPN’s optimism will come with the next major WWE premium event, where viewership and subscriber metrics could determine if the investment is truly paying off.
