JohnCenaFan28
12-19-2008, 08:19 PM
WWE has been offering long-term contracts to several big starts with clauses that strongly favor the company. WWE has offered Rey Mysterio a 5-year contract and Randy Orton a 10-year deal, where they don't provide many ways out of the contracts for the wrestler, but are filled with clauses that would let the company out of the deal.
For example, if there is a three-year contract, WWE could break it at any time with just 90 days notice. Some top stars have enough leverage to broker better deals, but the company still is strict about protecting themselves with out clauses.
In Mysterio’s case, the company would be protected if Rey suffered another injury or Randy Orton had a behavioral incident and the company wanted out of the deals. In the case of an injury, WWE merely pays the downside guarantee, so there is incentive for the wrestlers to continue working. The policy was put in place in response to various wrestlers who abused WCW’s guaranteed contract system. This leaves the performers with very little leverage.
If the talent is locked in for a long-term deal, but the company can opt out at any time they please, it’s basically a no lose situation for WWE.
Source: WZ
For example, if there is a three-year contract, WWE could break it at any time with just 90 days notice. Some top stars have enough leverage to broker better deals, but the company still is strict about protecting themselves with out clauses.
In Mysterio’s case, the company would be protected if Rey suffered another injury or Randy Orton had a behavioral incident and the company wanted out of the deals. In the case of an injury, WWE merely pays the downside guarantee, so there is incentive for the wrestlers to continue working. The policy was put in place in response to various wrestlers who abused WCW’s guaranteed contract system. This leaves the performers with very little leverage.
If the talent is locked in for a long-term deal, but the company can opt out at any time they please, it’s basically a no lose situation for WWE.
Source: WZ