LightShed’s business analyst Brandon Ross has addressed the possibilities of either Endeavor or the CAA buying WWE in the near future, naming Nick Khan as a key player for the operation.
It has been two weeks now since the pro wrestling world found out about the news of Vince McMahon’s retirement from the WWE.
Vince’s retirement from his role as WWE Chairman and CEO led to the naming of his daughter Stephanie and Nick Khan as WWE Co-CEOs, as well as the recent announcement of Triple H’s new role as the company’s Head of Creatives.
Now, after many speculations about the company’s future, LightShed’s business analyst Brandon Ross has given his thoughts on a potential sell-out from WWE.
While speaking with Wrestlenomics’ Brandon Thurston and Jesse Collings, Ross explained that Endeavor- a holding for talent and media agencies who acquired UFC in 2016-and the Creative Artists Agency (CAA) are the strongest options to buy WWE right now. He said:
“I think this actually syncs with the conversation we were just having,” Ross said. “If you look at the UFC acquisition and how that was handled. They allowed Dana and UFC to kind of run as their own separate entity while leveraging all the infrastructure of Endeavor to help make them better and unlock revenue opportunities. I think a really good example of that is on the sponsorship side.
We all know that WWE has really been under-monetized from a sponsorship perspective for a long time. If you look at it like, where does the profitability of this business come from? It’s on those kinds of rights deals. Nick [Khan] is amazing at that as we all know. His history with CAA [Creative Artists Agency] and the involvement that he’s had in the past on this. But Ari Emanuel is certainly no slouch, and the idea of teaming those two, you basically have a dream team kind of approaching all these negotiations as well.”
Ross also stated that, even though they are not looking there right now, it would be no surprise if the CAA shows more interest in buying WWE in the near future:
“I don’t think that’s kind of where they’re [CAA] looking right now,” Ross explained. “Endeavor obviously has public currency, and part of the compensation for the deal would be stock. Knowing what the stock is worth and having a public mark on it is kind of generally a big deal. I don’t think it’s a stupid idea, especially as CAA recently bulked up. But you also don’t get those synergies between UFC, on the infrastructure side, and WWE that you would get with the existing business sitting there and frankly, other live entertainment businesses there.”
You can click here to watch the full interview.
Transcript Credit – WrestlingInc
Photo Credit – World Wrestling Entertainment (WWE)