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WWE's Vince McMahon's Assets Get Slammed
By: Shawn Paul Wood
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A funny thing happened to Vincent Kennedy McMahon, chairman and CEO of World Wrestling Entertainment, Inc., on the way to work the other day — he lost one-third of his entire net worth. Yes, in one day! Was there a robbery? Kinda. Did he forget to lock his safe? Somewhat. He leave his wallet on a subway or something? You're getting warmer. 

Last week, WWE announced its progression of global domination as it would continue its fruitful relationship with NBC Universal over the next several years. Its Monday episodic show "Raw" would stay on the USA Network and its Thursday lollapalooza "Smackdown" would remain on the SyFy Network. And then, in separate statements, executives from both companies said they were pleased to be able to continue their partnership and estimated that on a weekly basis, "WWE programming reaches more viewers than the NBA, NASCAR, MLB, NHL and UFC." Good times, right? Wrong. Dead wrong. 

A while ago, WWE thought they would pull a fast one on cable and satellite providers everywhere — take away all pay-per-views. Them's fightin' words because that is about 400,000 people purchasing $59.99 PPVs each. However, with the creation of the WWE Network, Vince thought that by asking the entire "WWE Universe" to purchase said network for $10 a month, and include the PPVs, the body slam would be in a big pile of cash. PR was nasty because the aforementioned companies were trading barbs with the WWE. Of course, Vince thought he had them all pinned. That is, until he had to release new valuations of the network as a result of this deal. 

Business Insider reports WWE said that it will need 1.3 million to 1.4 million subscribers more to its over-the-top service to replace revenues it is losing from its monthly pay-per-view events, which previously cost around $50 but are now available to WWE Network subscribers as part of their $9.99 monthly fee.

Currently, the WWE Network only has 670,000 subscribers. Yeah, hurts to miss that one. To wit, WWE stocks crashed from $19.93 a share to close at $11.25 a share. In one day. That's $350 million to you and me. More than 30% of the McMahon dynasty to him. No longer a billionaire. No longer the man. Sure, Vince is the undisputed King of the Ring, but King of the Mountain? Yeah, he's been clotheslined smooth off that thing. Bad PR indeed. 

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About the Author
Shawn Paul Wood is a hack-turned-flack with more than 20 years of collective journalism, copywriting and marketing communications experience. Shawn Paul is founder of Woodworks Communications in Dallas, Texas. If you need him, ping him here or follow him on Twitter @ShawnPaulWood
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