WWE Rumour Mill: How much could Saudi Arabia controversy cost WWE?

What's the story?

The WWE could lose up to $16 million if they were to pull out of their Saudi Arabia deal following the alleged murder of journalist Jamal Khashoggi.

In case you didn't know...

In early 2018, the WWE formed a deal with the Kingdom of Saudi Arabia, with several shows planned to be hosted in the country.

The first of these was the Greatest Royal Rumble, which was a financial success, though the WWE were criticized for having no women appear (due to the nation's strict laws against women) as well as Syrian-Canadian star, Sami Zayn.

A second show, WWE Crown Jewel has also been announced but has faced a similar backlash.

Earlier this month, known critic of the Saudi Royal Family Jamal Khashoggi went missing after entering a Saudi consulate in Turkey to obtain a marriage document.

Khashoggi is alleged to have been murdered, with all security footage removed from the building, though the Saudi government have denied involvement.

The heart of the matter

According to Dade Hayes of Deadline, moving or postponing Crown Jewel could cost WWE up to $2 million - $3 million in their fourth quarter cash flow.

Exiting the deal entirely would obviously cost the company a lot more.

Were the company to go beyond the Crown Jewel event and walk away from its 10-year, multi-platform partnership, the hit to 2019 operating income would range from $12 million-$16 million, Eric Handler of MKM Partners estimates.

He called that “not an inconsequential number, but far less impactful than WWE’s new TV contracts” with networks including Fox.

What's next?

WWE Crown Jewel is currently scheduled to take place November 2 at the King Saud University Stadium in Riyadh, Saudi Arabia.

The show will feature a WWE World Cup tournament, as well as the in-ring return of Shawn Michaels, who will have his first match in over eight years, after retiring at WrestleMania 26.