Kemo
04-03-2023, 08:41 PM
https://i.imgur.com/PsXwJK3.jpg
The era of Vince McMahon being the sole owner and the only decision maker to all things WWE is coming to an end.
WWE and Endeavor released a joint statement earlier today to announce an unprecedented deal. The agreement will see the two parties forming a new company. Endeavor which also owns UFC will bring the MMA league under this banner as well. They will hold 51% stake in this new company while the remaining 49% will go to current WWE stockholders.
PWInsider provided some Insight on this deal and explained why McMahon chose Endeavor over other potential options. According to them, a major factor in this agreement is the fact that Vince and Endeavor head Ari Emanuel have known each other for over 22 years. There is a great level of familiarity between the two and Endeavor has an understanding of the workings of WWE:
"One source described it as each knowing the "shorthand" of the other and that it was very much "the devil you know" in that there was a great understanding of what each side and each personality brings to the table as opposed to starting off scratch with a new entity that might not understand what the WWE product brings to the table, why and how it works and that with Emanuel and Endeavor, there's no fear of someone coming in to try and 'reshape the wheel.'"
The fact that Endeavor allows UFC to run with autonomy despite owning the company was also a big part of the decision. This favors McMahon as all signs point to WWE operating in the same way. The creative team, production team and others will likely remain in place and operate independently without major interferences. They will however utilize their own staff for the 'back office' to cut costs. This will lead to more WWE releases. For example, if Endeavor's accounting team can handle it, WWE won't need a separate accounting office anymore.
This was still a surprising announcement as Emanuel had previously claimed that they were not in the race to buy WWE. Despite this, the two sides started clicking in terms of a sale and late last week, they locked in the plans. Regarding his earlier comments, it was noted that Ari either had a change of heart or he probably downplayed the idea to prevent a bidding war.
On the business end of things, the success Endeavor has had with UFC has to be one big factor behind the decision. The belief is that Endeavor will be able to create a synergy between UFC and WWE to increase the value of the wrestling company. In this regard, Endeavor would prove to be a far better home for WWE compared to any other big organization where the promotion would become just another asset:
"There was a feeling on the WWE side that given their success with growing UFC since acquiring the company, that Endeavor would likely be able to "supercharge" the WWE Intellectual Property. Endeavor is not only a major force in Hollywood and can help WWE tap even deeper into that DNA, but have lots of other holdings and properties that WWE can use to their advantage"
WWE will remain headquartered in Stamford and all signs point that for fans it will continue being the brand they have always known. Of course, the fact that Vince McMahon is retaining a good amount of power has to be a big motivation for the majority stockholder to make the deal. From being forced to retire from the promotion to returning and getting himself such a strong position with the company has to be counted as a big personal win for McMahon.
The era of Vince McMahon being the sole owner and the only decision maker to all things WWE is coming to an end.
WWE and Endeavor released a joint statement earlier today to announce an unprecedented deal. The agreement will see the two parties forming a new company. Endeavor which also owns UFC will bring the MMA league under this banner as well. They will hold 51% stake in this new company while the remaining 49% will go to current WWE stockholders.
PWInsider provided some Insight on this deal and explained why McMahon chose Endeavor over other potential options. According to them, a major factor in this agreement is the fact that Vince and Endeavor head Ari Emanuel have known each other for over 22 years. There is a great level of familiarity between the two and Endeavor has an understanding of the workings of WWE:
"One source described it as each knowing the "shorthand" of the other and that it was very much "the devil you know" in that there was a great understanding of what each side and each personality brings to the table as opposed to starting off scratch with a new entity that might not understand what the WWE product brings to the table, why and how it works and that with Emanuel and Endeavor, there's no fear of someone coming in to try and 'reshape the wheel.'"
The fact that Endeavor allows UFC to run with autonomy despite owning the company was also a big part of the decision. This favors McMahon as all signs point to WWE operating in the same way. The creative team, production team and others will likely remain in place and operate independently without major interferences. They will however utilize their own staff for the 'back office' to cut costs. This will lead to more WWE releases. For example, if Endeavor's accounting team can handle it, WWE won't need a separate accounting office anymore.
This was still a surprising announcement as Emanuel had previously claimed that they were not in the race to buy WWE. Despite this, the two sides started clicking in terms of a sale and late last week, they locked in the plans. Regarding his earlier comments, it was noted that Ari either had a change of heart or he probably downplayed the idea to prevent a bidding war.
On the business end of things, the success Endeavor has had with UFC has to be one big factor behind the decision. The belief is that Endeavor will be able to create a synergy between UFC and WWE to increase the value of the wrestling company. In this regard, Endeavor would prove to be a far better home for WWE compared to any other big organization where the promotion would become just another asset:
"There was a feeling on the WWE side that given their success with growing UFC since acquiring the company, that Endeavor would likely be able to "supercharge" the WWE Intellectual Property. Endeavor is not only a major force in Hollywood and can help WWE tap even deeper into that DNA, but have lots of other holdings and properties that WWE can use to their advantage"
WWE will remain headquartered in Stamford and all signs point that for fans it will continue being the brand they have always known. Of course, the fact that Vince McMahon is retaining a good amount of power has to be a big motivation for the majority stockholder to make the deal. From being forced to retire from the promotion to returning and getting himself such a strong position with the company has to be counted as a big personal win for McMahon.