Is the bankruptcy of XFL and WWE’s falling stock values a signal for worse things to come for Vince McMahon?
Who would have thought that Vince McMahon, the Chairman of World Wrestling Entertainment (WWE) can be at risk of bankruptcy? However, as per recent events, things could pan out that way if McMahon does not take wise decisions.
The stock prices of WWE have gone down the drain as they continue to plummet. Furthermore, concerns rise for Vince McMahon as his own league, XFL, just filed for bankruptcy.
XFL is a competitor to the NFL just like Impact Wrestling and All Elite Wrestling are competitors to the WWE. Hence, the simultaneous rise of such concerns certainly tightens the grip on Vince McMahon.
Highlights: Vince McMahon at Risk of Bankruptcy:
- WWE Stock Prices Plummeting.
- Lack of Major Draws the Prime Reason for Falling Stock.
- WWE has Increased Competition now.
Decrease in Stock Prices of WWE by 30 %
Recent times have definitely been devastating for WWE as their stock prices have decreased by 30 % within a few months of 2020. As a result of continuous falling stock prices, WWE has already lost a billion dollars.
Falling Stock Prices due to WWE’s Lack of Major Draws
Since WWE is an entertainment live show, its superstars’ persona is crucial in entertaining fans. And to say that was terrible last year is an understatement.
In the recent past, WWE has had several big names such as Batista, John Cena, and Triple H, but currently, it only has talent, but no fan favorites.
For example, the likes of Becky Lynch and Roman Reigns have the potential to captivate audiences, but WWE’s poor talent management has not allowed that to happen.
Therefore, WWE has needed to rely on its past stars to continuously bring fans to its product. The more WWE resorts to older stars, the worse the current product will become.
All Elite Wrestling a Growing Concern for WWE
Although WWE is the longest-serving wrestling entertainment show, the rise of other wrestling shows is a concern. For example, All Elite Wrestling (AEW), founded in 2019, is a new competitor to the WWE.
After signing WWE’s major stars, Jon Moxley (known as Dean Ambrose in WWE) and Chris Jericho, AEW have announced their name as a strong competitor.
Hence, WWE needs to ensure that they deliver a strong product, because if they don’t, then not only will they lose fans but also star performers like Jon Moxley, who could have potentially gotten them several fans.
Vince McMahon faces a strong financial crunch currently. After losing his XFL league due to bankruptcy, Vince McMahon cannot afford to lose WWE as well.
In order to prevent his WWE stock from further decreasing, he needs to make quick and wise decisions to prevent WWE’s competitors from grabbing a greater market share.