April 27, 2011
World Wrestling Grapples With Competitive Threat
WWEs Unsustainable Dividends
Boasting a ravishing 12% yield, WWE's Class A dividend may be cut as early as the Q1 report on May 5. WWE earned 71 cents per share for all of 2010, while paying out a 36 cent dividend per quarter. Unless profit grows or the controlling McMahon family waives their Class B shares, the dividend must be cut and the shares will tumble further.
Several operational factors are making WWE an unattractive accidental high yielder. In fourth quarter of 2011, operating income declined by 22% and earnings fell as live event attendance dropped 15% in North America. Like WWE, Live Nation Entertainment (NYSE:LYV) is another company that depends on gate revenues, which experienced a difficult 2010. That might mean it was simply a down year for most companies that host live events. Unfortunately, a business that is closely related to WWE battled its way to a great year - and that doesn't speak well for WWE.
UFC Slams Wrestling
WWE dominates a very niche segment of the entertainment market, but professional wrestling is grappling with privately held Ultimate Fighting Championship's growing shadow. Some argue that the two companies don't compete with each other; that one is sports (UFC) and the other is sports entertainment (WWE). This is not true. Fans are clearly crossing over from the WWE's ring to the UFC's octagon
Here We Go Again
In addition to competitive pressures from the UFC, investors need to be concerned about WWE's intentions to diversify away from the ring. On April 7, World Wrestling Entertainment officially rebranded itself as "WWE." The new company will be a diversified entertainment company, featuring a TV network with scripted and reality shows, and animated programs, along with wrestling events. The concern for investors is that WWE has a dubious history of businesses outside core wrestling operations. The failed XFL football league and wrestling-themed restaurant in New York City do not portend well for WWE's latest attempt at reincarnation.
The Bottom Line
The impact of WWE's rebranding won't be fully realized until the details of a potential TV deal are released. In the meantime, investors should prepare themselves right away for a shock when the dividend gets slammed...More?
source: investopedia.com
Kevin Nash Gives Update On Scott Hall's Condition
Kevin Nash posted the following on his official Twitter: "BTW: just talked to Scott. He was watching the Bulls game and sounded ok to me."
Scott Hall's ex-wife, Dana, has still been very vocal on her own Twitter page and had a different opinion of Scott's condition after a recent phone call: "We finally got him 2 answer phone, NOT a nice call, basically he could care less about kids/getting well- he was drinking".
Dana has even been sending links of her recent open letter printed in the Post and Courier to Dog the Bounty Hunter, Dr. Drew, Shawn Michaels, Kevin Nash, Sean Waltman and even TMZ, begging for their help with the situation.
source: wrestlezone.com
Chris Jericho Eliminated from DWTS
Chris Jericho and his dance partner Cheryl Burke were eliminated from ABC's "Dancing with the Stars" earlier tonight. Jericho wrote on Twitter:
"Had an amazing time on DWTS! Thx @cherylburke for being a great teacher and friend and Thx to all of u for voting-6 weeks ain't too shabby!"
This Day in Wrestling History
Happy Birthday to Frank Gotch
April 27, 1878 - December 16, 1917
Frank Gotch is truly one of the original pioneers of professional wrestling. Long before the money, fame, and glitz of modern wrestling, long before the post WWII boom of Gorgeous George and "TV wrestling," before Lou Thesz, before Ed "Strangler" Lewis, before there was even a such thing as a "federation" in wrestling, there was Frank Gotch.
During this fleeting time of legitimacy in wrestling, Gotch was renowned for his great skill and power, despite his deceivingly small stature, and became perhaps wrestling's first true box-office attraction. As crafty and ruthless as he was skilled, Gotch held the undisputed World Title until he retired, undefeated as champion. His professional record was an impressive 132 victories out of 140 total matches...with several of his losses coming in handicapped matches. His bouts with Hackenschmidt, Jenkins, Stanislaus Zbysko and others were truly legendary...and can be traced back to the earliest days of what we now know as professional wrestling...More?
source: wrestlingmuseum.com
April 26, 2011
WWE 2011 Supplemental Draft
1. Daniel Bryan to SmackDown
2. Jack Swagger to Raw
3. The Great Khali to SmackDown
4. Ranjin Singh to SmackDown
5. Jimmy Uso to SmackDown
6. Kelly Kelly to Raw
7. JTG to Raw
8. Alicia Fox to SmackDown
9. William Regal to SmackDown
10. Yoshi Tatsu to SmackDown
11. Drew McIntyre to Raw
12. Curt Hawkins to Raw
13. Chris Masters to Raw
14. Natalya to SmackDown
15. Jey Uso to SmackDown
16. Kofi Kingston to Raw
17. Ted DiBiase to SmackDown
18. Tyler Reks to Raw
19. Tyson Kidd to SmackDown
20. Tamina to SmackDown
21. Alex Riley to SmackDown
22. Beth Phoenix to Raw
23. Sheamus to SmackDown
John Cena Sidesteps WWE Draft Move
John Cena was moved to SmackDown in a fascinating WWE draft special — but returned to Raw within two hours.
The nine-time world champion was the first name announced as shifting from the red brand to its blue counterpart after Smackdown's Big Show and Kofi Kingston won a battle royal to open this week's Raw.
However, in the main event — a match Cena actually competed in for SmackDown — the red team of The Miz, CM Punk and newly-drafted Alberto Del Rio emerged victorious, earning another pick.
This turned out to be Cena, who destroyed the heels and celebrated to close the show...More?
source: the sun
WWE Changes Autograph Policy
WWE recently issued a memo to talents, notifying them that they can no longer sign autographs on money, clothing or people's skin. This comes after a top WWE star recently signed a fans' expensive leather jacket. The next day, an angry parent called WWE officials and complained that the jacket was ruined, forcing WWE to reimburse the parent for the jacket.
source: pwinsider.com
Rumor Mill - CM Punk Leaving WWE?
Apparently Punk has also been telling people close to him that he's interested in taking some time off. He is burnt out from being on the road and may not re-sign when his contract is up.
Jim Ross Injured at Raw
WWE announcer Jim Ross commented on his hand injury suffered during his match against Michael Cole on Monday's Raw episode.
"Hand's throbbing. Xrays tues. Cole's tooth went to the bone on my fist. Not an artistic masterpiece. Dropping bombs. Leather straps sun. Ugh," Ross posted on his Twitter page following Raw.
source: pwtorch.com
