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The ongoing pandemic has put the entire world on notice. Even well-established companies such as WWE have been impacted by it. Back in April, WWE released/furloughed dozens of Superstars, announcers, producers, and other backstage personnel.
Initially, wrestling fans took to social media to question why WWE didn't just offer the top talents considerable pay cuts instead of relieving several employees and contractors of their duties. However, it has recently come to light that asking a wrestler to take a pay cut would allow them to compete for other wrestling organizations including AEW while still remaining signed to WWE.
On one of the latest editions of the Wrestling Observer Radio, Dave Meltzer took up this issue and shed light on the technicalities involved:
“The thing is the talent is under contract. If the talent is asked to take a pay cut then they become free agents and then they can go to AEW. So the talent is gonna be the last ones. Perhaps the undercard talent, I mean they may offer people who they don’t think will go, or they don’t think will be interest, or they don’t care if they go. Then you’re breaching contracts. I don’t see them breaching contracts with talent. That will be the last one that they do, but yeah, it’s another one. They gotta keep those profits up." (h/t: WrestleTalk)
Now, it is understandable why WWE hasn't followed in the footsteps of many other organizations by offering its contractors reduced pay for the time being. Seeing someone like Braun Strowman answer Cody's TNT title open challenge on an upcoming Wednesday is something WWE shouldn't be in favor of. However, this is exactly what the top talent would be able to do if they are asked to take a pay cut.
WWE Executives are taking massive pay cuts
While it's true that WWE ended up releasing and furloughing a considerable portion of its workforce, it looks like the cost-cutting measures are just getting started. Even though professional wrestling Superstars contracted by WWE can't be asked to take a pay cut, executives can be.
In fact, this is what's happening. This past weekend, PWInsider reported that numerous officials and executives in the company were notified recently about their salaries getting cut due to the inconveniences caused by COVID-19.
Moreover, Dave Meltzer revealed that certain referees and producers are already taking reduced pay (20% down from their original salary). However, the cuts imposed on officials and executives aren't known yet.
In a press release issued by WWE concerning the cost-cutting measures, the leading wrestling corporation stated:
The Company’s reductions of employee compensation and headcount result in an estimated monthly savings of $4 million along with cash flow improvement of $140 million primarily from the deferral in spending on the Company’s new headquarters. Additionally, the Company has substantial financial resources, both available cash and debt capacity, which currently total approximately $0.5 billion, to manage the challenges ahead. Management continues to believe the fundamentals of the Company’s business remain strong and that WWE is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term.
The company is estimated to record impressive profits in 2020, even if it doesn't run another house show or travel to the Kingdom of Saudi Arabia for its second show of the year. This became the reason behind people's outrage regarding the recent releases.
How WWE superstars are handling the departure of their friends
While a number of Superstars haven't spoken up on the issue in question yet, others have been quite expressive. AJ Styles was deeply affected after his real-life friends Luke Gallows and Karl Anderson were let go. The Phenomenal One, during his recent appearance on After the Bell, had this to say:
I brought their names to WWE and when they got released, I immediately felt responsible for them because I helped them get here and I wanted them to stay. I thought, if I hadn't encouraged them to stay maybe they wouldn't be behind right now. A lot of it fell on me and I felt like I let them down. I talked to them about this and I was just crushed. I'm the oldest and I didn't take care of them. That really bothered me. And it still does.
Additionally, Becky Lynch took to Instagram to dedicate a post to Fit Finlay. Also, Dolph Ziggler has been promoting the Pro Wrestling Tees pages of Matt Cardona (FKA Zack Ryder) and Brian Myers (FKA Curt Hawkins).
Thus, if WWE is to make sure that its Superstars don't work for any other company, then the talent must be paid in full. Full-time employees such as referees, producers, and other executives, on the other hand, can continue to witness a further reduction in their pay over time.
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