TNA having financial problems?

[CrazySting]

One oft-overlooked factor in TNA's destiny to compete with rival promotion World Wrestling Entertainment are the added expenses entailed.

Since January, the company has ballooned its roster to over 70 performers with the notable additions of high priced stars such as Ric Flair, Rob Van Dam, Jeff Hardy and the former Mr. Kennedy. Furthermore, the company has added the costly expense of going live every other Monday night and promotion of said move (i.e. airing commercials during Monday Night Raw and running Billboards in Times Square). Other than slight bumps in house show attendance and merchandise sales, TNA has to little to show for its efforts. In fact, ratings are at its lowest levels in four years due to the move to Monday nights.

Wrestling Observer editor Dave Meltzer cryptically said during a recent episode of Wrestling Observer Radio that TNA is having bigger financial problems than most realize.

"I'm worried about my friends who work for TNA because they have bigger financial problems than anyone knows," Meltzer said

wrestling-radio.

Well, for a start they can get rid of Waltman and Hall who add absolutely nothing.

[TheDarkestKnight]

Mar 26, 2010 18:47:12 GMT -5 CrazySting said:

One oft-overlooked factor in TNA's destiny to compete with rival promotion World Wrestling Entertainment are the added expenses entailed.

Since January, the company has ballooned its roster to over 70 performers with the notable additions of high priced stars such as Ric Flair, Rob Van Dam, Jeff Hardy and the former Mr. Kennedy. Furthermore, the company has added the costly expense of going live every other Monday night and promotion of said move (i.e. airing commercials during Monday Night Raw and running Billboards in Times Square). Other than slight bumps in house show attendance and merchandise sales, TNA has to little to show for its efforts. In fact, ratings are at its lowest levels in four years due to the move to Monday nights.

Wrestling Observer editor Dave Meltzer cryptically said during a recent episode of Wrestling Observer Radio that TNA is having bigger financial problems than most realize.

"I'm worried about my friends who work for TNA because they have bigger financial problems than anyone knows," Meltzer said

wrestling-radio.

Well, for a start they can get rid of Waltman and Hall who add absolutely nothing.

Other than the fact Hall is probably more known than half the roster? It's a double edged sword with TNA. If you get rid of the older guys you lose the name recognition which does pull in fans, keep them around and it adds to your wage bill.

If I was clearing out TNA's closet here is who I would get rid of without hesitation.

Shannon Moore, Consequences Creed, Shark Boy, Kiyoshi, Nasty Boys, Raven, Dr Stevie and Rhino.

Now the above isn't a list of who I dislike, rather the weight I would shed.

[Deleted]

I am the foremost "TNA makes a ton of mistakes" guy here, but even I got to call NEWZ on this one.

Meltzer's comments could relate to the guy in craft services for all we know.

[deeks]

Got to call NEWZ on this one too. Sounds like Meltzer is just speculating, which he has done numerous times before about TNA. TNA is not a public company like WWE nor are they WCW which was owned by Time Warner. So there is no way for him to know. He just figures they are spending lots of money on talent and can't make back that investment. So to him that equals financial problems. Without facts, it's a non-story.

The main problem with this is almost all TNA contracts are not guaranteed. So the talent isn't making what you think. You don't work, you don't get paid. So this is not WCW where everyone from Buff Bagwell to Disco Inferno was on the gravy train.

[Andrew is Good]

It's not just speculation on his part.

Bill Behrens talked about this recently too on his Who's Slamming Who podcast.

Basically, TNA is extremely top heavy. They have too many top stars for their own well being, and is a company that tends to cut from the bottom, the guys who aren't on major deals.

Take this into consideration. Shark Boy. He hasn't been on tv in ages, yet he still wrestles on house shows, and is a huge merchandise seller at those shows. I'm not sure how much he gets paid, but I'm sure it's a great deal less then say, the Nasty Boys. So, you have an extremely over and less expensive talent at House Shows, but the bigger talent who may not wrestle at all the house shows are with major tv deals.

Jerry Jarrett said in a shoot interview that he would not have signed Kurt Angle to the money TNA signed Kurt Angle, simply because Kurt wasn't drawing enough at the time to warrant. Now, it's been said that Jerry has been a big tight with his money, but I do understand what he's saying.

TNA last year had a large influx of relatively little known talent (on a national basis anyway). The British Invasion, Desmond Wolfe, Cody Deaner, Sarita, Jesse Neal, Lacey Von Erich, Amazing Red who returned, Kiyoshi, No Limit, Daniels returning, Hamada and probably others who I'm forgetting. And talent that did come in from WWE, were separated from their WWE past (Dr. Stevie, D'Angelo Dinero). TNA also did better ratings wise in the first half of 2009 in relation to the second, which according to Bill Behrens, Russo was the head of the second half, and I'm assuming Dirty Dutch was the first half.

Since TNA has brought in Hogan, the only guys who aren't known on a national basis were Generation ME. And the ratings have taken a heavy tumble. And for what TNA is drawing at house shows and tv, they probably shouldn't have had the big name talent they did, like Kurt Angle, Mick Foley, Kevin Nash, etc. But, a few of those names are good in my opinion. But, now with Hogan at the helm, he's sucked the money out of everyone.

I remember Hogan did an interview and said you have to spend money to make money. And I was thinking, he's spending Bob Carter's money, not his. He would probably say the same thing if it was his money. And yeah, I really hope Bob Carter realizes what's going on, and gets rid of Hogan soon. And yes, I like some of the new guys coming in, but I've also seen them before. I mean, at least with D'Angelo Dinero, who got a new look and a new gimmick. Most everyone who has come from the WWE pre-Hogan ended up becoming TNA stars. Now, TNA is filled with former WWE stars.

[Crusty Ruffles]

Correct me if I'm wrong, but isn't Spike picking up part of the tab for Sting and Angle? Who knows if they may be in on a few others.

[Andrew is Good]

I remember reading Flair wanted a contract with Panda.

Anyway, if TNA is getting too top heavy, and needs to let people go, they should let go most of the guys Hogan brought in. I'm interested with what their doing with OJ, Mr. Anderson is pretty good and Brian Kendrick could re-establish himself, but he can't because there are so many people around. But the rest, even Jeff Hardy and RVD, should go to save money. They need to build main event stars from within, and bring in the random WWE guy. It's ok sometimes, not ok in one big influx.

[Krimzon]

Toss out the Nasty Boys, Jimmy Hart, Bubba the Love Sponge, Orlando Jordan, Hall, Waltman, Jesse Neal, Raven, Rhino, Rob Terry (who isn't really needed), Tomko (who isn't worth it this time around), Shark Boy, Creed (if they aren't going to do anything with him), & Taz (don't need him at all). I'm sure they could save a few bucks that way. Weed out the crap/useless talent. Dump the people that should be dumped.

[Deleted]

The Times Square billboards are owned by Spike so TNA didn't pay a dime for them and the commercials weren't nation or ever carrier wide so they were not nearly expensive as Dave wants us to believe.

Are the wrestlers costing them more, without a doubt (well, the ones not on a pay per appearance deal like Shark Boy, Creed and others) but, they are having nearly as many expensive as he is implying.

[AriadosMan]

All I know is, going from a time when Sting was your only really highly paid guy (possibly Kurt as well) to a time when you're having to shell out for Hogan, Flair, Jeff Hardy, and RVD without getting a huge ratings/sales boost from it is bound to take a chunk of your companies' financial health.
TNA is doing the exact opposite of what any sensible company is trying to do, staffing-wise, in the middle of a recession. It was bound to take a hit sooner or later.

Still not too late to move Mondays 8-10 or back to Thursdays to cushion the blow though.

[Dave at the Movies]

I'm going to call major newz on this. TNA has been making a profit for like almost four years now. Sure they may not be doing big business like WWE but they are far from suffering financially. How in the hell would Meltzer or Behrens know about how TNA is doing financially? I know they have stooges on the inside but even those backstage wrestling ring crew guys wouldn't know about TNA finances.

[bob]

Mar 26, 2010 19:40:34 GMT -5 Crusty Ruffles said:

Correct me if I'm wrong, but isn't Spike picking up part of the tab for Sting and Angle? Who knows if they may be in on a few others.

Spike pays a chunk of the contract for the higher paid guys like Angle, Hogan, Sting etc.

howver it wouldn't really surprise me they are having problems or at least concerns because it costs a lot to have live tv

that and I heard they are cutting down on house shows

[AriadosMan]

Just to clarify something about the murky world of TNA finances...

why exactly would a contract with Panda (which owns TNA) be better than a contract with TNA?

[TheDarkestKnight]

Mar 26, 2010 20:44:57 GMT -5 bob said:

Mar 26, 2010 19:40:34 GMT -5 Crusty Ruffles said:

Correct me if I'm wrong, but isn't Spike picking up part of the tab for Sting and Angle? Who knows if they may be in on a few others.

Spike pays a chunk of the contract for the higher paid guys like Angle, Hogan, Sting etc.

howver it wouldn't really surprise me they are having problems or at least concerns because it costs a lot to have live tv

that and I heard they are cutting down on house shows

Read that on a few sites over the last few months. Wouldn't surprise me really as some house shows have a really poor turnout. I have joked before that some proms have more paying guests than a TNA houseshow. I have read reports of TNA handing out free tickets to houseshows which must be a killer for the profit margin.

[Deleted]

Mar 26, 2010 20:50:33 GMT -5 AriadosMan said:

Just to clarify something about the murky world of TNA finances...

why exactly would a contract with Panda (which owns TNA) be better than a contract with TNA?

If TNA were to go under, no one under a TNA Entertainment LLC. contract would be due payment, unlike if they were under a Panda Energy contract.

It'd be like having a WCW contract in 01, instead of an AOL Time Warner one.

[kropotkin]

I wouldn't be surprised if their profit margin is razor thin, but there seem to be few signs of financial distress as such. They were definitely hit by the crisis and they cut back on house shows and out of town PPVs but that's about it. A large chunk of their talent seems to be on a pay as you go contract anyway.

Mind you, that totally blows for the lower card guys who are underpaid but I think the logic is that TNA lets them pick up indie bookings while giving them national exposure thus increasing their earning power.

[Michael Coello]

I doubt the story. They've had a sucesful UK tour, their house shows have been doing well from most reports, and while the ratings aren't as high as desired, Spike is fine with them and they still have their viewers who tune in.

[AriadosMan]

I still don't think they should be going on a hiring spree in the current environment, and if anything, they should at least be trying to take their PPVs out of the Impact Zone to at least start to get some national exposure if they want a "war'.

[lildude8218]

not to cause anymore grief with this, but I did notice that Stevie mentioned sending out resumes on Twitter only a few days ago.

[AriadosMan]

Mar 26, 2010 20:59:20 GMT -5 lildude8218 said:

not to cause anymore grief with this, but I did notice that Stevie mentioned sending out resumes on Twitter only a few days ago.

That may be paranoia about getting fired rather than the state of the company overall, especially if they decide to break the bank to hire Warrior or Macho Man (I honestly wouldn't put it past them).