The Hamilton Ave Journal 11.05.09: Volume 2 – Issue 110

Posted by JP Prag on 11.05.2009

Will Ric Flair and the Ultimate Warrior share a table in a court of law? Is the McMahon family still collecting a large dividend payout? Has Hogan already brought ratings success to TNA? Which TNA Knockout is outselling everyone else on the roster? 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 110

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: Lawsuit updates

In the constantly suing world of professional wrestling, there are many lawsuits to keep track of. Recently, news broke from the Ultimate Warrior that he had lost his state-level case against the WWE because he violated the terms of the original agreement by posting disparaging remarks about the WWE. While Mr. Warrior had decided to move ahead with the federal-level case, there is no further clarification on how that case would differ from the state-level if they were based on the same contracts.

What is happening, though, in the land of the Warrior is that he filed a motion of appeal in the state-level case. Not swayed by just the motion, Judge Roslyn Silver has given Mr. Warrior until November 27, 2009 to present any new evidence that would give reason for the case to be re-opened. If he I unable to provide anything, the case will be dismissed with prejudice, which means that Mr. Warrior can never again bring up similar charges against the WWE. It may also mean the WWE can sue him to recoup their loses during the defense of this case, but the WWE does not seem interested in such a tactic.

A star from the same era has been in financial trouble recently. Ric Flair has allegedly received several high dollar loans from companies and he has put up personal property as collateral. Highspots.com tried to auction off the original NWA belt that Mr. Flair put up as collateral against the loan he allegedly took from them and never paid back, but were deterred when they learned that Combraco actually already had a lien against the belt for a $300,000 loan.

According to Highspots.com's press release:

After speaking with our counsel, Combraco, Inc. has informed us that they decided to give Mr. Flair an additional six months in which to repay the more than $300,000 that he owes to them. While we are disappointed by the delay, we respect the legal process and continue to work to resolve the issues with Mr. Flair's other creditors to protect the interest of our customers.

For what reason Combraco has decided to add this grace period remains to be seen, but for now that belt is going no where. Because of this, Highspots.com may once again try to go after Ric Flair for the cash itself. Since they have six months, there is no reason to not at least try to get back the compensation, no matter how slim that possibility may be.


Newsbites

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

The WWE declared their normal quarterly dividend of $0.36 a share for Class A stock with Class B stock getting $0.24 a share. The Class B stock is the one majority owned by the McMahon family. Although cash flow from operations does not support this amount, the WWE has continued to stand by this figure and has no plans to change the dividend in the future.

The WWE is running into an issue with removing their copyrighted material from YouTube. The specific clips they chose to remove were referenced by opponents of former CEO Linda McMahon's campaign for a Senate seat. This has caused Nancy DeNardo (who is head of the Connecticut Democrats) to file a complaint because she believes the removal of these videos was intentionally part of the campaign and that is prohibited under the "in-kind corporate contribution" policies.

With the success of tours in the UK this year, the WWE has decided to release another "Live in the UK" special DVD set. This will feature the shows taped in the UK this year and give the WWE the opportunity to cash in on a hot market for them.




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 November 4, 2009, here are the current standings of our shows:





RAW
Close (This Week's Rating): 3.4
Open (Last Week's Rating): 3.7
Percentage Change: ▼ 8.1%
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): 2.0
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): 1.0
Open (Last Week's Rating): 1.0
Percentage Change: UNCH
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): 1.3
Open (Last Week's Rating): 1.1
Percentage Change: ▲ 18.2%
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): 0.9
Open (Last Week's Rating): 0.9
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 the news of Hulk Hogan joining the organization, TNA jumped up to their all-time high of a 1.3 rating (though not the most number of viewers). This is the highest ratings since July 30, 2009 and has certainly continued the upward trend throughout the entire month of October.

Sneaking up in the background, two weeks ago SmackDown saw a 2.0 rating, their highest since the anniversary show on October 2, 2009 and the highest regular show since September 18, 2009. Despite MyNetworkTV being delisted as a network, SmackDown still shows up around the 17th spot in the syndicated list every week.




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. Survivor Series Anthology Vol 1 and Vol 2 ($119.90, on sale $59.99)
2. Superstars Reusable Bag ($1.99)
3. D Generation X Worlds Biggest Member T-Shirt ($25.00)
4. John Cena Attitude Adjustment Basics YOUTH T-Shirt ($9.99)
5. Superstars Collectible Cup ($1.99)
6. John Cena Holiday 2009 Youth T-Shirt Package ($26.99)
7. WWE 2009 Topps Trading Cards ($3.00)
8. Are You Ready: The Unauthorized History of D Generation X Paperback Book ($16, on sale $10.53)
9. D Generation X Basics YOUTH T-Shirt ($9.99)
10. Triple H Eversoris T-Shirt ($28, on sale $17.98)
11. John Cena Holiday 2009 T-Shirt Package ($29.99)
12. John Cena Ruthless Aggression #38 Action Figure ($17.99, on sale $13.99)
13. DX Holiday 2009 T-Shirt Package ($29.99)
14. Rey Mysterio PPV #20 Action Figure ($19.99, on sale $14.99)
15. WWE Superstars Party Pack ($27.99)
16. Divas Pink Logo Ladies Tee ($25.00)
17. Jeff Hardy Purple/Black Armbands ($15.00)
18. Randy Orton Deluxe Aggression #22 Action Figure ($15.99, on sale $12.99)
19. Are You Ready: The Unauthorized History of D Generation X Paperback Book/DVD Package ($50.95, on sale $19.99)
20. D Generation X Army Sweatband Set ($12.00)

There are weeks where one can tell that not much volume is moving due to small items jumping high on the list, and this was one of those weeks. A reusable bag showed up at number two for $1.99, a cup showed up at number five for $1.99, and a pack of trading cards showed up at number sever for $3. These items typically are being used to get orders over hurdles for free shipping, bonuses, or the like. Since the volume on them is so high to merit their placement on the charts (and multiple placements at that), the other product volumes must be lower as well. Despite this, a list like this week's gives a chance to odd products to shine through, including number sixteen's Diva's T-shirt. It is rare that a Diva item make it on this list, so the accolades must be put forth when they do.


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

1. Don's Insane Brown Bag Special ($20)
2. Velvet Sky Limited Edition Matted Photo With Hand-Signed Autograph ($27.99)
3. Sting Plastic Mask ($4.99)
4. Complete 2008 PPV DVD Set & Autographed Sting Card ($240, on sale $79.99)
5. Sting "Discharge" T-shirt ($19.99)
6. TNA Logo T-Shirt Special ($24.99)
7. Beer Money - Daily Buzz Shirt ($19.99)
8. Christy Hemme Limited Edition Matted Photo With Hand-Signed Autograph ($24.99)
9. TAZ Beat-down Hoodie ($39.99, on sale $34.99)
10. Hard Justice 2009 DVD ($19.99, on sale $14.99)

The women also made a strong appearance on TNA's list with both Velvet Sky and Christy Hemme placing in the top ten. Most of the other items were recycles from the prior week, including a dominance by Sting and appearances from Taz and Beer Money. Beer Money has consistently appeared on this list for the better part of the year save a few weeks, so one hopes the focus remains on growing new talents like them and not just on the acquisitions, no matter how well they sell.




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
8 (Nov) RAW Live (Liverpool, England, UK) SmackDown / ECW Live (Nottingham, England, UK) TNA Live (Jackson, TN)	9 RAW (Sheffield, England, UK) SmackDown / ECW Live (Cardiff, Wales, UK) TNA Live (Nashville, TN)	10 SmackDown / ECW (Sheffield, England, UK) RAW Live (Cardiff, Wales, UK)	11 RAW Live (London, England, UK) SmackDown / ECW Live (Stuttgart, Germany)	12 RAW Live (Birmingham, England, UK) SmackDown / ECW Live (Leipzig, Germany)	13 RAW Live (Lyon, France) SmackDown / ECW Live (Hamburg, Germany) TNA Live (Wayne, NJ) ROH Live (Novi, MI)	14 RAW Live (Lyon, France) SmackDown / ECW Live (Dublin, Ireland) TNA Live (Scranton, PA) ROH Live (Mississauga, Ontario, Canada)
15 SmackDown / ECW Live (Belfast, N. Ireland, UK)	16 RAW (New York City, NY) TNA iMPACT (Orlando, FL)	17 SmackDown / ECW (Philadelphia, PA) TNA iMPACT (Orlando, FL)	18	19	20	21

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 (or the week before), Indiaguy had us mull over this thought:

Its an obscure biz type question… but what are your opinions on the Wrestling and MMA market vis-a-vis Shane maybe trying to enter these? Do you think they are saturated already? Stuff like barriers to entry, the economic conditions a small 6 factor / Porter like analysis... I mean for all I know he might just decide to chill for a year or two... but it allows me to get a business view and especially your view on these markets.

While the MMA market is growing, there is one dominant player with the vast majority of the market share with a oligopoly of 3-4 other players who have deals. MMA has not reached its saturation point yet, but it has passed by the point where a new national organization would have a unique value proposition to offer. More likely, we are about to enter a period of consolidation where the MMA companies start to buy each other or fold entirely until there are just two to three.

There are two main areas that MMA has specific growth potential outside of what they are doing now. First, there is a very loose "minor leagues" system that could use organization. MMA companies actually do have trouble finding qualified talent, especially in the heavyweight class. A better organized development system in conjunction with a major organization could help find better talent and give people a rank system to move through.

The other area for growth is internationally. MMA has exploded on the domestic scene, but is only now beginning to touch overseas markets. The UK, Canada, Mexico, Japan, and Australia all have a lot of access, but—like wrestling—the true growth is in the larger developing nations like China and India. This happens to be Shane McMahon's specialty and could be an area he could add value to an MMA organization or where he could grow one of his own.

From a wrestling perspective, the barriers to entry to getting a new international promotion going are astronomical. Everything from acquiring the talent (which, believe it or not, there is a lack of quality openly available), getting arena contracts, setting up television deals, creating a whole back office system; there are just too many difficulties. Even the regional promotions and smaller independents that don't have those issues have a saturated market. There is no deep longing call for more professional wrestling domestically, and only slightly larger calls internationally. Shane has skills he could offer to another organization like NSW, but would most likely not want to compete against the family business that he still owns a considerable share (literally) of.

Moving on to other wrestling organizations, diz wants to talk about TNA's latest UK addition:

An additional note on TNA - they're moving from a Saturday night slot on Bravo to a Friday night slot on Virgin 1, which means there's no competition from the big hitters like Strictly Come Dancing, The X-Factor (no, not THAT X-Factor) and the iconic Match of the Day. Friday nights in the 9-11 timeslot are a lot lighter on competition. However, there's the advertising aspect as well - Sky Sports News (two guesses who runs that) are on Freeview, and they tend to trail every WWE PPV, and occasionally their TV product. And SSN is seen a lot, going by BARB's ratings

Just to clarify something: iMPACT is not moving away from their Saturday night timeslot on Bravo; they are just adding the freeview show on Virgin 1 on Friday. In the USA, Fridays and Saturdays are generally not competitive nights for television, but they used to be. Shows like All in the Family, the Jeffersons, Mary Tyler Moore, and others had major ratings on those nights. In other countries like the UK, a show could have a lot more competition and do very well.

And if ry is any indication, it looks to be a good move on TNA's part:

I'm from the UK and will now be frequently watching TNA now that it's available on freeview, all dependant on whether the spoilers sound promising.

Of course, the other big news out of TNA was the signing of Hulk Hogan. This brought up FACT, who may or not be saying factual things:

Hogan has to be getting paid a lot, but as usual TNA isn't ponying up the big bucks, Spike TV is. That is a problem because TNA, not Spike TV, needs to be spending some of Dixie's money. Remember it takes money to make money?

Just read an interview where Christian says when he returned to WWE earlier this year, the next week a fan stopped him in the airport and asked him why he came out of retirement.

Another interview I heard was with Kevin Nash talking and he said he was eating lunch, and a fan asked him what he had been up to since filming The Punisher in 2003. What was his answer? I am on iMPACT on Thursday nights every week on cable TV still wrestling for TNA.

Sad. But true. TNA needs to give up some money, whether they have turned a profit or not, to get their name out there some more.

TNA's audience is much smaller than the WWE's, but it is not tiny. Having 1.5 million people view the product domestically plus several million more around the world is nothing to sneeze it, so let us not discount that. Hogan's job would seem to be to bring that visibility to the company. Of course, that will only work if TNA can advertise that Hogan is there in places that do not already know it. Over the years, TNA has managed to go from a few thousand viewers when they came to Spike TV to 1.5 million, but they have been stagnant. Is Hulk Hogan the cure? Only time will tell. Or perhaps Iron Knee:

Hogan will likely have a major impact on TNA. Hervey and Bischoff have good relations with Viacom and might be able to expand TNA's brand across to other networks. MTV, BET, and CMT all have audiences which enjoy wrestling and might be home to TNA programming.

That is all the backstage stuff that most people do not understand. Bischoff wanted to do so much more with the Time Warner family of media, but he was hindered. Perhaps now, too, he can take advantage of the synergies in another organization.

And finally, Good Robot Cena has some questions about Hogan's other contracts:

I have a question...

Last I heard, Hogan had a long term merchandising deal with Vince, thus meaning Vince could still put out Hogan DVDs, put Hogan in the SmackDown vs. RAW games, make Hulkamania T-Shirts, what have you.

How is that deal affected by Hogan signing with TNA? Could Vince sell Hogan Sucks shirts if he wanted? Contract Rick Bogner to be "The New Hulk Hogan"?

(admittedly, that last is unlikely, but...)
Hulk Hogan owns all the copyrights and trademarks on his character and likeness, so no, the WWE could not create a "new" Hulk Hogan. However, Hogan mentioned in an interview this week that he was in negotiations with Vince McMahon about the WWE being able to license those trademarks. This was most likely a "legends" contract like Jim Duggan has where the WWE uses a wrestler on a pay-per-appearance deal, gets a cut of merchandise, and acts as an ambassador.

This is most likely where Hogan got his comments about being put out to pasture. He does not see himself as someone who should be an "ambassador" and just gives permission for a cut of his revenue. He believes he has more to add both behind the camera and in front of it, and it looks like he found a place that will let him do so for the right price.


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

Till then!