Post by "Evil Brood" Jackson Vanik on Apr 12, 2019 9:28:03 GMT -5
From WON:
Brandon Thurston at Fightful.com did an analysis that it would cost the company $28.5 million annually (which is actually a high estimate as we’d have it at $22.6 million) to make their wrestlers employees rather than independent contractors, like athletes in the major sports leagues are listed as. Given the WWE’s $178.9 million in OIBDA, a number that many analysts believe will top $500 million in 2020, that would be an easily affordable expense. Using the IRS’ ten-point test to determine whether someone is an independent contractor or an employee, pro wrestlers with WWE qualify on eight of the ten points, and debatably on a ninth, when generally, five or six of the ten makes you an employee. As noted before, the number of WWE pro wrestlers in the grand scheme of things is so small that it’s a fight that nobody has bothered in politics to touch because they’d be accused of wasting their time worrying about such a small number of fake actors. If we go with the idea that wrestlers are getting eight percent of the current revenue, which would make a $72 million payroll, the contributions to FICA tax, Medicare tax, unemployment tax and Connecticut state tax would be $2.36 million. Howard listed $3.6 million when he figured his numbers based on $118 million in salary payments to talent., estimating it at 13 percent. He estimated giving the wrestlers health insurance would be $25,000 per wrestler per year with 215 wrestlers under contract, or $5.4 million. If a retirement plan consists of five percent, when he figured it based on $118 million in salaries as just under $6 million, although it’s more likely closer to $3.6 million. He estimated $8.3 million in 401K based on seven percent, but seven percent of $72 million is $5 million. He also estimated based on the number of performers on the road, based on numbers of $315 per night for a hotel room (which sounds extremely high to me on average), $100 per day for meals (also high, as wrestlers are usually not eating in fancy restaurants regularly since the majority watch their diets closely and dinner at Chipotle’s a favorite of a lot of the talent because it’s quick and healthy, is not that expensive), $65 per day for rental cars (again high since most don’t travel on their own and usually travel in groups cutting way down the average expense per day although the per day for the car would actually be higher if someone travels alone), $28 in fuel and tolls (again a high number on average because of people traveling together) and $15 per day for gym fees they would list $5.23 million. This is harder to estimate but my feeling is the total would also be significantly lower. One WWE star told us the daily hotel average is about $150, the food estimate isn’t that far off, rental cars can be higher, plus even though plane tickets are covered, talent has to pay baggage fees to check bags for the trip which would be about $25 per flight, there are either parking fees at the airport or Uber fees going to and from the airport which would be $50 to $100 per week, not to mention wrestlers being unique for uniformed and costumed performers as far as having to pay for their own gear and boots, plus there is the expense of makeup and tanning no the road and clothing because WWE requires having to look professional on the road and show up at the arena in dress clothes unless you are a performer with a gimmick that gives you an exemption. The NXT crew, because they earn far less in salary, when they go on the road outside of Florida their expenses are taken care of as far as hotels, as the company has them all staying at the same hotel, like a sport team would, and picks up the bill. They are also bussed together going from city-to-city, again, just like a sports team would be, so the idea that it can’t be done or there is something wrong and wrestling is different, God only knows why, is more because even though nearly every touring sports and entertainment like franchise of even close to the same market value does exactly that, WWE’s main roster doesn’t simply based on the idea when wrestling was a hand-to-mouth business they didn’t do it that way and, like with pay based on the houses, it’s a system that made sense but hasn’t for a long time but simply never got changed.
