World Wrestling Entertainment (WWE) has reached the conclusion of an exclusive negotiating window with FOX Corporation and Comcast, and the entity was unable to come to terms on a new broadcast deal. The revelation, reported by Andrew Marchand of the New York Post, brings the deal to the open marketplace and creates a litany of possibilities about the future of the property. The company recently merged with Endeavor, the parent company of the Ultimate Fighting Championship (UFC), and will soon create a new publicly traded company. WWE shareholders will have a 49% minority stake in the firm, while Endeavor and UFC will possess the 51% majority.
The Walt Disney Company reportedly has interest in acquiring WWE broadcast rights for FX, a channel it acquired in its purchase of 21st Century Fox in March 2019. Its addition to the Disney portfolio was part of the same deal that required the company to divest the FOX-branded regional sports networks, which are now in a state of turmoil after Diamond Sports Group declared Chapter 11 bankruptcy protection earlier this year. Now, the WWE will continue its quest for a new broadcast home, and has postulated deals with various over-the-top (OTT) streaming platforms as a potential move.
At the moment, Friday Night Smackdown is televised by FOX for about $205 million annually, while Monday Night RAW is presented on USA Network, owned by Comcast, for $265 million per year. Both deals expire in October 2024, and while the expectation is that both are ultimately renewed, perhaps at different price points, there is a chance of some variation in the landing spots. The combined value of those contracts over the life of the deal is $2.35 billion, and the company has seen steady viewership gains perseverating in the present-day.
NBCUniversal’s Peacock streaming service inked a five-year, $1 billion streaming contract with WWE until March 2026, which is just before Wrestlemania 42. No conversations regarding the future of those rights are currently up for discussion; however, it will be something to keep an eye on as the impending negotiations play out. The company also recently revealed a new, multi-year partnership with Twitch that includes the relaunch of the WWE channel. It is the home of an alternate presentation of Monday Night RAW featuring WWE superstars and a rotating panel of hosts. Personalities also have been granted the ability to stream so long as they do so under the company’s rules and regulations, including revenue sharing.
Amazon Prime Video could be a potential candidate to land the WWE, similar to what it did for Thursday Night Football. The entity tried to gain media rights for Big Ten Football on Saturday nights, but Comcast-owned NBCUniversal secured those rights, leaving the streaming outlet empty-handed. WWE chief executive officer Nick Khan previously stated that the streaming service would be open to broadcast Smackdown on a different night if necessary. Moreover, Khan expects a 150% price increase in the forthcoming television rights negotiations, and has mentioned pairing with Netflix as an ideal way to immerse the streamer into live sports.
There is a chance Apple and Warner Bros. Discovery strive for the rights, although both are intriguing candidates for National Basketball Association (NBA) media rights. The deal expires after the 2024-25 season, and NBA Commissioner Adam Silver hinted that it could represent the impetus for the exploration of the Association’s expansion. According to Marchand, Warner Bros. Discovery does not have an exclusivity clause in its contract with All Elite Wrestling (AEW), a property that recently announced expanded programming at the company Upfront event.
