WWE has been around for more than three decades. During its tenure as the premier organization in professional wrestling, it has witnessed both highs and lows business-wise. Vince McMahon took the administrative reigns of the company after purchasing the company from his father.
For a period in 1993-1994, Vince McMahon was indicted by the federal government in the USA for distributing steroids to WWE talents. Three out of the six cases made it to court. Details on 'The Steroid Trial' were covered in an episode of Dark Side of the Ring. The trial was a crucial standpoint for the company given its rise in popularity and on the verge of it becoming a global phenomenon with the introduction of The Attitude Era.
McMahon's close friend Jerry McDevitt was his attorney during the trial. The gravity of the situation was not to be taken lightly as Vince McMahon could have been sentenced to 11 years in prison in addition to a $1.5 million fine. Hulk Hogan was also a part of the trial and made major claims against the former WWE Chairman given their turbulent relationship.
Between 1980 and 2009, Linda McMahon was heavily associated with the company as President and CEO respectively. She then proceeded to venture into other business aspects of the company. The impact of the trial was so damaging that Linda McMahon had to cut down on costs for a plethora of services.
Former WWE photographer Tom Buchanon took to Facebook to share details of the memo Linda McMahon had initiated called 'the profit improvement plan'. This included suspending sales of bottled water, no over-time payments for workers going past lunch hours, and ceasing cafeteria services, among others.
Additionally, he cited how Hall of Famer Sunny's popularity was used for the upliftment of the Connecticut-based promotion.
WWE has been under the microscope for multiple legal issues since its inception. These issues are not limited to Vince McMahon's sexual harassment lawsuit last year but also pertain to trademark matters, and the most recent one on racial discrimination.
WWE CEO Nick Khan recently cited more cost cuts were set to be in place
WWE recently underwent one of the biggest mergers between two sports-related companies. Following Vince McMahon's retirement last year, there were rumors of his intention to sell WWE. That came to fruition last month when UFC's parent company Endeavor put together a deal to purchase the Stamford-based company.
While ownership of shares took place, there were a few internal changes reported as well. Vince McMahon returned to administrative duties earlier this year and following the merger with Endeavor, has insisted that multiple changes to be made creatively. This allegedly did not sit well with his son-in-law Triple H and others in the administrative and creative circles.
During an interaction with LightShed Partners, Nick Khan claimed that cost cuts worth nearly $50 million would be effective soon:
“If you look at what Endeavor was able to take out, cost-wise, from UFC in 2016 or shortly after that deal was done, we have the same expectation here. We think 50 (million) is a really conservative number. We have integration teams now, we’re going to get those in shape, I think we’ll have a better sense of it in a month or two." [H/T TJR Wrestling]
The last time WWE released a number of notable talents was a couple of years ago. Many stars were let go with budget cuts cited as the reason during the pandemic years.
A few of the released stars worked under Triple H and were instantly reinstated upon his return. However, with the drastic and last-minute modifications one can never be too certain on what to expect with Vince McMahon in creative control.