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The whole XFL thing is complicated. To fund the league, VKM sold a total of approximately 500m worth of WWE stock to provide a runway for the XFL. Estimated losses for year one are estimated around 130m which was slightly more than anticipated. So what happened?
The whole XFL thing is complicated. To fund the league, VKM sold a total of approximately 500m worth of WWE stock to provide a runway for the XFL. Estimated losses for year one are estimated around 130m which was slightly more than anticipated. So what happened?
WWE released guidance immediately after “postponing” mania with the goal of calming investor fears and stopping the stock price from going in the tank. In that guidance, $WWE stated that between cash-on-hand and available credit, WWE has .5 billion on hand
which is a really strange way to say 500m but whatever, it’s what they said. So, the question becomes... why pull the plug? I think the answer is fairly clear, but it’s not good.
First thing to keep in mind- our current POTUS only has a handful of people he considers friends 3/
First thing to keep in mind- our current POTUS only has a handful of people he considers friends 3/
VKM is very much among those friends, and to think he knows more than we do currently wouldn’t be a stretch.
With 370m of runway left, it seems premature to terminate league functions. Unless...
He believes WWE may need that capita. It’s a hypothesis, but let’s dig in
4/
With 370m of runway left, it seems premature to terminate league functions. Unless...
He believes WWE may need that capita. It’s a hypothesis, but let’s dig in
4/
a bit. The exact number lost on mania (projections minus reality equals) Mania is unknown right now, so I’m going to ballpark it at 50m based on previous financials. House shows are break even or a loss. So that leaves... tv...
People are hella pissed that WWE is still running and they feel that it puts athletes at risk (which is true). That said, if they stop running TV, either NBC or FOX COULD (that’s the big word here: COULD not would) terminate their current television deals.
That would be an absolute disaster for everyone involved (especially since the majority of WWE talent signed new deals in 2019, and many got a significant raise).
To tie it all together, I don’t believe that VKM terminates the league because he felt like he had to or was
To tie it all together, I don’t believe that VKM terminates the league because he felt like he had to or was
pressured to. He did it (IMO) because cash is king when the market is down, and it’s very realistic to believe that WWE, his baby, could quite possibly need that money as well.
Sorry for not numbering these- Chasing around 4 kids and 2 dogs while trying to gather thoughts.
Sorry for not numbering these- Chasing around 4 kids and 2 dogs while trying to gather thoughts.
I feel absolutely awful that some really bright, talented people lost their jobs. I also believe that without that extra capital, WWE could have some major issues if our current circumstances continue.
/end.
/end.
Please ignore the typos and grammar errors. I typed this out while pushing a playground swing 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Face with tears of joy" aria-label="Emoji: Face with tears of joy">
tl;dr: I believe it’s quite possible that VKM shuttered the XFL to make sure his cash-on-hand would be enough to support WWE if this crisis extends much further.
Title could also be: How VKM learned from his past mistakes, did everything right, and had his dream venture knocked off by the 2020 version of a bubonic freaking plague.
