Perhaps of the three “combat sports” that I write about, the world of pro wrestling gave us some of the most interesting legal and business stories in its industry.
First, WWE secured a deal with streaming provider Netflix in a first of its kind deal which would take WWE’s main show, Monday Night Raw, off of terrestrial television and move it to subscription-based Netflix. The move will pay WWE $5 Billion over the next 10 years to allow Netflix to air Raw live as well as access to its archives. The broader goal was for WWE to expand its international base via Netflix. The U.S., Canada, UK and Latin America would all benefit from the new deal. One has to think that this consolidation of media rights through Netflix might stifle its continued popularity overseas but it would seem that TKO was bullish on the strategy. WWE has been an early adopter with many of its ideas and technology. Some have not turned out well (remember Tout?) Yet, it hit with its own WWE Network and was able to grow it into something in which Netflix was willing to make this deep investment.
Also of note, 2024 marked the return of Saturday Night’s Main event to NBC.
Next, Vince McMahon was hit with a salacious lawsuit by a former employee accusing McMahon of sexual battery and sex trafficking. The details implicated WWE executive John Laurinaitis who was accused of participating in sexual trysts with McMahon and the accuser Janel Grant. Initially, Laurinaitis came out against McMahon claiming that he also was a victim. He then reversed course siding with McMahon in the attempt to move the lawsuit to arbitration. But the damage was done. A day after the lawsuit, McMahon was ousted from his position at TKO. The lawsuit was put on hold pending an investigation by the U.S. Attorney which likely was based on the allegations of sexual trafficking and perhaps financial issues related to payments made to other women to sexual misconduct incidents. This fall, the stay on the lawsuit was lifted and the lawsuit continues.
In September, the Netflix documentary, “Mr. McMahon” came out which included interviews with McMahon. The interviews occurred prior to the Grant lawsuit and apparently McMahon was not privy to how he would be portrayed. According to a report, McMahon attempted to purchase the Netflix documentary to shelve it from public consumption. It didn’t happen.
Another lawsuit was filed this past fall related to allegations of sexual abuse made by a WWE employee in the 1980s on “ring boys” that worked for the company. The lawsuit was filed in Maryland under the 2023 Child Victims Act. The Act removes the statute of limitations for civil lawsuits involving sexual abuse of a child. Before the state supreme court is the constitutionality of the law. The court will not be expected to issue a ruling until August 2025. The lawsuit was brought up about the same time that Linda McMahon was being considered for a cabinet position in the president-elect’s new administration.
While this may not mean anything to many, Wrestlenomics added pressure on the State of Texas to release records related to the City of San Antonio acquiring the 2023 Royal Rumble. The release of information signifies a check against governmental use of influence/funds to acquire events to come to its cities.
For AEW, the biggest news for in 2024 was a new media rights deal in which it renewed with Warner Brothers Discovery which includes streaming on Max.
On the other end, former AEW talent filed a lawsuit against the company claiming that they were mischaracterized as contractors and not employees.
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