The Hamilton Ave Journal 10.08.09: Volume 2 – Issue 107

Posted by JP Prag on 10.08.2009

Are the networks finally getting behind wrestling for good? Does Deep South Wrestling still have a case against the WWE? How much is Ric Flair’s NWA Championship being sold off for? What market has just lost SmackDown? Did ratings rebound from last week? How much merchandise is DX selling? All this and more is answered in this week’s edition of the Hamilton Ave Journal!

THE HAMILTON AVE JOURNAL
By JP Prag

Volume 2 – Issue 107

ABOUT THE JOURNAL

The Hamilton Ave Journal is the only wrestling news report focused solely on the business of wrestling. Here in the Journal we not only look at the stories that are important to the investor and business-minded person, but also delve deeper into stories that most fans of wrestling would overlook. That is because the Journal is about getting the heart of the matters that affect the companies and outlooks of the wrestling world.

And where is Hamilton Ave? That is the location of the WWE Production Studio in Stamford, CT, and thus the most powerful place in the wrestling world. Besides, The East Main Street Journal just does not have the right ring to it.

Who am I? I am JP Prag: consultant, entrepreneur, businessman, journalist, and wrestling fan.

Now, ring the bell because the market is open.






The Journal's front page area known as What's News isn't just about telling you what has happened. The stories in this section are about what will have an effect on the wrestling industry, individual federations, and the wallets of the fans.

LEAD STORY: Networks support wrestling

In the past, despite airing wrestling programming, many stations have not been happy to have it on their airwaves. One glaring example was the Turner Broadcasting family which owed much of its success to NWA and WCW, yet always treated the programming terribly within the organization. When AOL bought Time Warner, the new owners opted to cancel their highest rated program simply because it did not fit in to their vision of what TNT and TBS were supposed to be.

Of course, they are not alone in that opinion. Despite signing a deal with ECW, the then TNN (now Spike) did not enjoy the product and could not be rid of it fast enough. In more recent times, the CW network as upset to inherit SmackDown from UPN and moved it to Friday nights before not renewing their contract with the organization.

So when a network actually supports their wrestling product, it is seen as a major sign of good faith. NBC/Universal has been quite vocal in their support of the WWE products, especially RAW. But they are not alone in that. MyNetworkTV Executive Vice-President Paul Franklin recently had this to say about his company's relationship with the WWE:

"From the network's perspective, it's [the relationship between the station and the WWE] been an A+. The McMahon's & everybody associated with the WWE & SmackDown in particular have been fantastic partners. We have had a great working relationship. We have been thrilled with the direction of the program, and we feel very fortunate… We couldn't be more pleased with what they are going to do with the show. The bulk of the ten years aired somewhere else, but yet here we've gone through our first season, and at the same time, they have lost no momentum, maybe even gained some momentum. It continues to be the cornerstone of what MyNetworkTV is all about."

Being the only original programming on the station and the highest ratings grabber has been important, too. Continues Mr. Franklin:

"As long as the people that are currently here at MyNetworkTV...as far as we're concerned, it's not going anywhere. It is helped put MyNetworkTV on the map with the viewer. Our audience growth over the last year has been phenomenal. Here, we were perceived as a sort of small little network, and SmackDown remains the #1 program amongst all broadcasting cable networks in men 18-34... They've lost nothing in terms of their viewer base. All we have done is manage to grow. Our affiliates are happy with us, the network is certainly happy with us, and the corporation is happy with this particular program, so certaily [sic] for the foreseeable future, as long as we can be involved, we are gonna be involved."

Obviously, MyNetworkTV would like to keep their cornerstone program that is brining in much of their revenue. Despite not being available in all markets (more on this below), the WWE having a supporting partner like this one who pays the bills is more important than a harassing partner who may not support the product in the same way.

The WWE is not the only one benefiting from a good relationship with their network partner. Despite having a poor relationship with ECW and a strained relationship with the WWE, Spike seems have learned their lesson and is working closely with TNA. After negotiating their new contract just a month back, TNA has now been given the green light to air Global iMPACT 2 tonight and have a three hour iMPACT next week leading in to Bound For Glory. From the press release:

On Thursday, October 8 at 11:00 PM, ET/PT, immediately following the regular weekly telecast of TNA "iMPACT!," Spike will present "Global Impact 2," a one-hour special featuring an international showdown between TNA Wrestling and New Japan Pro Wrestling from the world-famous Tokyo Dome in Tokyo, Japan.

"Global Impact 2" matchups include "Main Event Mafia vs. New Japan Main Event" featuring Kurt Angle, Kevin Nash, Mashahiro Chono and Riki Choshu vs. Giant Bernard, Takashi Iizuka, Tomohiro Ishii and Karl Anderson; "IWGP Tag Team Championship Match" with Team 3D going up against Togi Makabe and Toru Yano and "IWGP Junior Heavyweight Tag Team Title Match" featuring the Motor City Machineguns vs. Yujiro and Tetsuya Naito.

The following week, on Thursday, October 15, Spike will present a three-hour (9:00 PM - Midnight, ET/PT) super-sized installment of "iMPACT!" as the superstars of TNA make their final preparations before TNA's "Bound For Glory" pay-per-view event taking place that weekend.

Spike has had great success with the UFC recently, including the episode featuring Kimbo Slice garnering a higher rating than RAW. Despite this, Spike still continues to work with TNA to make them a stronger organization.


Developing Lawsuit

As first reported in Issue #85 of the Journal and covered more in depth in Issue #91 and Issue #96, owner of former WWE developmental territory Deep South Wrestling Jody Hamilton filed a lawsuit against his former partner. Mr. Hamilton alleges that the WWE breached their contract with DSW and himself when they ceased their relationship in April 2007, among other charges.

On October 2, 2009, the discovery phase came to an end with several components of the case being dismissed, but others allowed to move forward. In summary, those were:

Judge Walter Johnson of the United States District Court of Georgia found there was enough evidence to explore of the WWE was in breach of contract of ending their relationship with DSW without a required 90-day notice. The judge felt the WWE did not provide enough evidence that they did not breach a contractual agreement.

For the $320,000 in liability charges for DSW and $56,000 in personal damages for Mr. Hamilton due to having to cancel shows, Judge Johnson sided with the WWE. Since Mr. Hamilton was unable to prove there were any contracts that promised WWE contracted wrestlers to DSW events, then there was no case for Mr. Hamilton. Also, the WWE did prove that the wrestlers were in DSW only because they assigned them there, so they had the say on where the wrestlers would be. On top of that, Mr. Hamilton provided no evidence that the WWE coerced other wrestlers to not appear, making there no grounds for this component.

For the emotional distress, the judge again sided with the WWE. Since Mr. Hamilton filed his complaint two days after the statute of limitations, the judge had no choice but to eliminate the charge. Despite this, Judge Johnson noted that he would have dismissed the case anyway because "WWE's alleged actions do not rise to the requisite level of extreme and outrageous conduct".

With much of case being thrown out, it does not look like there would be too much to move forward with. Despite this, the break of contract may be the most provable point and could result in a win for DSW and Mr. Hamilton. The question is, without the other charges what is the monetary loss to DSW because of breach of contract?

In other words, are the damages from this one charge going to amount to much? Or, will the WWE just settle to get this case out of court and pay Mr. Hamilton off? And if they do the latter, would Mr. Hamilton accept? Is money all that Mr. Hamilton is seeking, or is he trying to make a point?


Newsbites

Some items of note in the rest of the wrestling business world:

In more from the lawsuit front, Highspots and Ric Flair's attorneys were not able to come to an agreement on what he owes the company for services not delivered. Because of this, Highspots is now selling Ric Flair's original NWA Championship belt that Mr. Flair put up as collateral at auction. Opening bids start at $75,000.

The case between the WrestleReunion and Live Nation continues as both sides want the other to pay their attorney fees. Live Nation contends since they won the original decision that they should not have to pay while WrestleReunion says the original settlement should still be paid to them.

In their continual growth into other areas and markets, AAA out of Mexico has signed a deal with Playmates to make action figures of their wrestlers. The toys will begin to be available in Fall 2010.

Sticking in Mexico, the WWE has signed an expansion of their PPV deal to make all 14 of their PPVs available in 2.3 million homes and 100 cinemas. Says WWE Executive Vice President of Global Media Shane McMahon:

"The expansion of our pay-per-view network in Mexico is a testament to the dramatic increase in popularity that WWE is enjoying. Our new partnerships with Cablevisión and Cinépolis will not only deliver pay-per-view events into more households, but also into cinemas, where fans can enjoy the action-packed excitement of WWE on the big screen."

The WWE is going to need all the PPV buyrate help they can if recent number prove true. Preliminary figures for SummerSlam have the buyrate coming in below 380,000 buys, down from 500,000 buys in 2008. The final numers will be available in late November, when the WWE released the Q3 results, so stay tuned to the Journal until then.

WrestleMania 26 in Phoenix has gained a new sponsor in Slim Jim. Slim Jim has long been a sponsor of wrestling events and persons, most notably in their long campaign with Randy Savage.

TNA's annual end-of-cycle PPV Bound For Glory will be sold this year at $39.99, $10 higher than a normal TNA PPV. This is in line with the price increase seen last year.

With MyNetworkTV losing their network status, even markets that did not have the station but were airing on local Fox affiliates are dropping program. First up in Fox 64 in Providence, RI which has dropped its late night airings of MyNetworkTV, including SmackDown. Cox Cable has added a MyNetwork station, but those on other providers—including this reporter—will no longer have SmackDown.




In the Marketplace we look at the trends in television ratings. This section is less for critical analysis by the Journal but more for the reader to see what is really going on and to draw their own conclusions.

As with stocks, here in the Journal we track the progress of television ratings. If ratings are the barometer by which we judge the product, then over the course of 52 weeks we should be able to see patterns, trends, and anomalies.

For the week ending Wednesday September 30, 2009, here are the current standings of our shows:





RAW
Close (This Week's Rating): 3.3
Open (Last Week's Rating): 3.1
Percentage Change: ▲ 6.5%
52-Week High: 4.5
52-Week Low: 2.9
All Time High: 8.1
All Time Low: 1.8

SmackDown*
Close (This Week's Rating): UNAV
Open (Last Week's Rating): 1.9
Percentage Change: N/A
52-Week High: 2.3
52-Week Low: 1.6
All Time High: 5.8
All Time Low: 1.0

* SmackDown! ratings may include fast overnight if final ratings are not posted. Also, SmackDown! ratings are for the prior week as overnights are not available before this article goes to print.

ECW
Close (This Week's Rating): 1.1
Open (Last Week's Rating): 1.0
Percentage Change: ▲ 8.2%
52-Week High: 1.4
52-Week Low: 0.7
All Time High: 2.3
All Time Low: 0.6

TNA iMPACT**
Close (This Week's Rating): 1.1
Open (Last Week's Rating): 1.0
Percentage Change: ▲ 10.0%
52-Week High: 1.3
52-Week Low: 0.9
All Time High: 1.3
All Time Low: 0.6

** TNA iMPACT's are for the prior week as ratings may not be available at the time of the Journal's posting

SuperStars***
Close (This Week's Rating): 0.8
Open (Last Week's Rating): 0.8
Percentage Change: UNCH
52-Week High: 1.0
52-Week Low: 0.7
All Time High: 1.0
All Time Low: 0.7

*** SuperStars ratings may include fast overnight if final ratings are not posted. Also, SuperStars ratings are for the prior week as overnights are not available before this article goes to print.

Analysis:

With MyNetworkTV being downgraded from a network, the ratings for SmackDown and the rest of their shows only come out on a weekly basis. It remains to be seen what that delay will mean yet, but already this week the ratings are unavailable. This week would be especially interesting with the 10th anniversary special, so the Journal will endeavor to get that rating as soon as it is available.

Meanwhile, the other shows all showed small rebounds this week, but are tracking below summer averages. RAW managed to do quite well with a 3.3 rating against Monday Night Football's over 15 rating, the highest rating in cable television history (note "cable", not all television).




We all know that wrestling is a business, but we don't often pay attention to what sells and makes money. Money and Investing looks into the top selling items in the world of wrestling and any interesting figures that may have come out this week.

What are the top selling items for the WWE? WWEShopZone.com releases a list of varying numbers to show what is selling for them:

1. D Generation X Camouflage Cowboy Hat ($20)
2. Are You Ready: The Unauthorized History of D Generation X Paperback Book/DVD Package ($50.95, on sale $19.99)
3. John Cena 2009 YOUTH Halloween Package ($36.99)
4. D Generation X Worlds Biggest Member T-Shirt ($25)
5. Rey Mysterio 2009 YOUTH Halloween Package ($33.99)
6. Are You Ready: The Unauthorized History of D Generation X Paperback Book ($16, on sale $10.53)
7. D Generation X 2009 YOUTH Halloween Package ($68, on sale $36.99)
8. John Cena You Can't See Me Skull Cap ($20, on sale $5.98)
9. Jeff Hardy 2009 YOUTH Halloween Package ($70, on sale $36.99)
10. D Generation X 2009 Halloween Package ($42.99)
11. John Cena Rubber Bracelet ($4.99, on sale $3, on double sale $0.98)
12. John Cena 2009 Halloween Package ($42.99)
13. Best of SmackDown 10th Anniversary DVD ($34.95, on sale $18.90)
14. D Generation X Basics YOUTH T-Shirt ($9.99)
15. John Cena Attitude Adjustment Baseball Cap ($20)
16. D Generation X Shock Skull Cap ($20, on sale $5.98)
17. Jeff Hardy White Armbands ($20, on sale $10)
18. WWE Plastic Undisputed Championship Title Belt ($19.98, on sale $9.98)
19. D Generation X Air Freshener ($2.49, on sale $0.98)
20. D Generation X Army Cadet Cap ($20)

Although some other sources may try to report on the WWE's top selling items, those who do would be quick to learn that the list changes on a daily basis. Today, there are only two Jeff Hardy items and both are on sale. On the other end of the spectrum, DX took over 50% of the list with the addition of their new books, hats, and various older items that have continued to sell. John Cena, SmackDown, and Rey Mysterio rounded out the list, leaving little room for anything else.

Also, despite reports to the contrary, the beach towels on WWEShop.com have been available since July or earlier. Some sites report irresponsibly on the what is selling when (even saying the WWE has a top ten list, which is not true anymore). When you want to know what is selling in the world of wrestling, remember that the Hamilton Ave Journal is your premier source.


TNA sometimes releases a list of top selling items on ShopTNA.com. According to the site the top selling items were:

1. Victory Road 2009 DVD ($14.99)
2. X Division Special DVD Set ($120, on sale $24.99)
3. Cross The Line Triple Pack 2.0 ($24.99, on sale $14.99)
4. Slammiversary 2009 DVD ($17.99, on sale $14.99)
5. Cross The Line Triple Pack ($24.99, on sale $10.88)
6. Bound For Glory 2009 Event T-Shirt (Pre-Order) ($19.99)
7. Bound For Glory Fan Interaction General Admission ($55)
8. Beer Money T-shirt ($19.99)
9. Jeff Jarrett - King Of The Mountain DVD Set ($29.99)
10. The Best of NWA-TNA Title Matches ($19.99)

In such an exciting week for product information, TNA neglected to update their list.




Wrestling isn't just about watching and reading. The best way to be a wrestling fan is to experience it live. Where is wrestling coming to in the next 2 weeks? The Personal Journal answers that question.

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday
11 (Oct) RAW Live (Toledo, OH) SmackDown / ECW Live (Huntington, WV) TNA Live (Mankato, MN)	12 RAW (Indianapolis, IN) SmackDown / ECW Live (Pikeville, KY)	13 SmackDown / ECW (Lexington, KY)	14	15 SmackDown / ECW Live (Monterrey, Mexico)	16 RAW Live (Huntsville, AL) SmackDown / ECW Live (Puebla, Mexico)	17 RAW Live (Columbus, GA) SmackDown / ECW Live (Mexico City, Mexico)
18 TNA Bound For Glory (Irvine, CA) RAW Live (Dothan, AL) SmackDown / ECW Live (Mexico City, Mexico)	19 RAW (Jacksonville, FL)	20 SmackDown / ECW (Columbia, SC) TNA iMPACT (Orlando, FL)	21 TNA iMPACT (Orlando, FL)	22 TNA iMPACT (Orlando, FL)	23 TNA Live (Chicago, IL)	24 WWE SuperShow (State College, PA) TNA Live (Racine, WI)

Do you know a wrestling event coming up? Send one in to The Hamilton Ave Journal and we'll be sure to add it to the list.




The Editorials section is designed for you, the readers, to respond to the views presented in the Journal, send an important news item, or talk about another overlooked business related item in wrestling. Just beware: the Journal reserves the right to respond back.

From the commentary section last week, with the RAW rating down everyone had an opinion, including JUSTINW:

Ratings are a pattern of the shows, not the show in itself. To blame the show for a bad rating is just an 'out', as people didn't know the quality of the show, thus not tuning in. It would reflect previous week's content and whether people wanted to come back and view it again or not.

True, too often commentators seems to think that the content during a show is the determining factor. Most people do not turn off a show once they are tuned in. Once you have the customer, it is much easier to keep them. But the true cost is get them to tune in in the first place. If the customer is turned off by the product on one week they are less likely to make it back the next.

wombat3269 provides the perspective of someone who is not as dedicated to the product as many people who read the Journal and other wrestling news resources:

On the Raw rating: as a casual fan the product is EXTREMELY stale and the up and comers (minus Evan Bourne who is too small to headline unfortunately) don't inspire greatness. They are good, but no reason for me to casually tune in between MNF commercials.

You IWC people need to understand that the casuals (like me) like what you don't. We like short squash matches, funny promos, and ridiculous guest host attempting to wrestle. My biggest nightmare is y'alls wet dream of a 45 minute submission match between Kurt Angle, Sean Michaels, and/or Dean Malenko. Give me Goldberg, the Ultimate Warrior, Jeff Hardy, Stone Cold, the Hulk, etc. Average workers who ENTERTAIN. I need them to be technically perfect like I need a genital wart. The WWE universe has left us (and you guys were never there) and therefore, so have the ratings...

The product is much more geared towards the younger audience now, so even the casual base you claim to represent would not be interested in the product. On the other end, the WWE has grown in ratings since last year, so they have found some replacement audience.

Of course, Iron Knee has his theory on the core WWE audience:

Why would the McMahons think Sharpton would appeal to their fanbase? As far as I can tell, most WWE fans are more conservative than the average American and a hell of a lot whiter. Look at their biggest recent star, Austin. He was a redneck gimmick not done for comedy and the audience loved him. I have a sneaking suspicion that many WWE fans are equally as rednecky.

The Rock was far more recent than Austin and just as big. Where does your theory fit with him?

Leaving behind the ratings (though there was quite a bit more written about it and the product in general) there is another topic of interest in merchandise. nwa88 states:

I don't disagree at all with your assertion that inflation has made the comparison between Hogan/Cena/Austin impossible to judge, but I do take exception with the idea that Hogan only had "one t-shirt for the 80s" Didn't he get a cut of all the other merchandise too, or was it for just what they sold at house shows? I only ask because he certainly had a huge line of products for sale from the 1980s through the 1990s, t-shirts, toys, lunchboxes, etc. Just look at an old WWF merchandise catalog.

It was an oversimplification as Hulk Hogan had an action figure, light switch, lunch box, underwear, etc…. However, he did not have the depth of products available today. For instance, John Cena has 105 items for sale today, not including group products he is a part of like video games and DVDs. Also, the prices for similar items have grown in expense far outpacing inflation. So not only is John Cena selling different items than Hulk Hogan and Steve Austin, but the similar items are not priced the same way.

To top it all off, the WWE is far more available nowadays then 25 years ago. At one time, there were few outlets to get WWE merchandise but they are available in almost every country in the world today. Also, the sales model just 15 years ago consisted of squash television used to sell house show tickets. Today, the model is reversed with television being a much bigger driver of revenue. This has changed salaries and merchandise sales strategies.

Although "wrestling" may be the product, the delivery methods have made the product of yesteryear have little in common with today's methods. Thus, the products themselves hold very little areas for comparison when you are talking about dollar figures.


Plenty more was written, so be sure to take a look. And if you enjoy the Journal, why not bookmark 411mania.com and make it your home page? You can do that by clicking here.




This concludes Issue #107 (Volume 2) of THE HAMILTON AVE JOURNAL. Join us next week as we get ready to ring the bell again.

Till then!