wrestling / Columns
The Hamilton Ave Journal 07.22.10: Volume 2 – Issue 147
THE HAMILTON AVE JOURNAL
By JP Prag
Volume 2 – Issue 147
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.
TOP STORY: TNA roundup
TNA has been making moves all around the world. Close to home, TNA Founder Jeff Jarrett sat down with the Miami Herald recently to talk about the growth of the company. When asked about the move to Monday’s and the mistakes from it Mr. Jarrett said:
“The mistake would be not learning from that experiment. We are about to take another step and change on how the company does business. We don’t want to sit back and rest on our accomplishments. We are always trying and always pushing ourselves not just talent in the ring, but all facets of our business.”
Mr. Jarrett is obviously taking a positive attitude to what transpired and if he speaks the truth, TNA has areas for growth. The issue for TNA has been in the past, though, that they often repeat the same mistakes ad nauseum. Sometimes there are risks to take, but TNA does not necessarily calculate the risks and costs associated with them. These have often been costly, which led to the next part of the interview. The article continued:
With the recent money invested, there would be a number of cost-cutting measures, including roster cuts. Without confirming or denying, Jarrett believes it’s the nature of the beast for any company.
“We run a business and in the business of making money,” Jarrett said. “So what needs to be done needs to be done in order for us to be in business.”
Much like the WWE, TNA is in the business of making money. Still, letting a domestic mistake dominate the headlines undermines what TNA is going around the world. Right now, Kurt Angle, Mick Foley, and Jay Lethal are on a six day tour of India, traveling to four cities. Says Dan Steverson, Director of International Marketing for TNA:
“India has always been an important market for us.”
As for the goals of this trip, Mr. Stevenson said elsewhere:
“We have three objectives. The first is to promote our partnership with ESPN Star Sports through promotional events. The second objective, though, is to go beyond the TV screen. We want to bring the TNA experience to our fans. Therefore, we are looking at doing live events. We are talking to several promoters.”
The third objective is covered by indiantelevision.com:
The third objective is to look for an Indian wrestler. The company in association with ESPN Star Sports is searching for the next great Indian wrestler. It is clearly taking a cue from the fact that the Great Khali has helped its rival World Wrestling Entertainment (WWE) gain viewers. The search will take six months. TNA is looking for the look, ability to entertain and an athletic talent and whoever wins will get a contract with TNA.
This seems similar to the talent search in Australia, although that ended up going nowhere as TNA never had their tour and therefore never signed anyone to a contract. While looking for an Indian talent could just be a publicity stunt, it could still do what TNA intends: create buzz and interest.
India is one of the hotbeds of the modern wrestling era and TNA is looking to make sure they have a foothold for all the future potential growth.
Newsbites
Some items of note in the rest of the wrestling business world:
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 time we should be able to see patterns, trends, and anomalies.
For the week ending Wednesday July 21, 2010, here are the current standings of the shows:
Analysis:
On this week, it appears that SuperStars is the big winner as the show jumped another 16% to a 0.74 rating. While still off the last high of a 0.8 on June 10, 2010, the show has continued to rise the return of iMPACT. Speaking of iMPACT, the show once again held above a 1.0, the first time it has been above a 1.0 for most than one week since before the Monday move. Once again, it appears that TNA is repairing their lost audience, a process that is going to be long and arduous for them.
Also on the rebuilding front, RAW came in with a 3.39, a slight tick above the last two weeks. The show continues to hang out in the 3.3 to 3.4 range, but that is much better than when they were averaging a 3.1 back in May. SmackDown, too, has held on well despite preemptions and no network support, coming in at a 1.9 two weeks ago.
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. John Cena Never Give Up T-Shirt ($25, on sale $19.95)
2. Randy Orton Lobotomy TOP ROPE T-Shirt ($45, on sale $37.95)
3. Nexus Logo T-Shirt ($25, on sale $19.95)
4. Miz I’m Awesome T-Shirt ($25, on sale $19.95)
5. John Cena Never Give Up YOUTH T-Shirt ($20, on sale $17.95)
6. Randy Orton Lobotomy T-Shirt ($25, on sale $19.95)
7. Triple H Return to Fear T-Shirt ($25, on sale $19.95)
8. Bret Hart Since 1984 T-Shirt Package ($75, on sale $35.99)
9. John Morrison Sunglasses ($12.00)
10. Bret Hart Emblem T-Shirt ($25, on sale $14.98)
11. CM Punk Salvation T-Shirt ($25, on sal e$19.95)
12. Bret Hart Emblem Basics T-Shirt ($14.99, on sale $6.98)
13. John Cena Never Give up Beach Towel ($19.99, on sale $14.99, on double sale $9.99)
14. Bret Hart Emblem Skull Cap ($20, on sale $9.98)
15. WWE 11 Piece School Accessories Value Pack ($9.99)
16. John Cena Never Give Up Baseball Cap ($20.00)
17. John Morrison Revolution T-Shirt ($25, on sale $14.98)
18. Hart Dynasty T-Shirt ($25, on sale $14.98)
19. WWE Red/Blue Reusable Bag ($2.99)
20. John Cena Never Give Up Sweatband Set ($12.00)
Have a sale and the merchandise flies. In a rare event, the WWE is having a sale on their high margin t-shirts which has caused a large volume to start moving. Despite this, most of the list remained unchanged with John Cena, the Miz, and Randy Orton dominating. Both Bret Hart and the Hart Dynasty saw a resurgence after Bret’s appearance on Monday as well as the sale, and John Morrison even doubled up his space on the list. CM Punk, too managed to secure a place on the list coming in at number eleven. But coming in at number three is the Nexus, showing the group is more than just angle: they can sell product as well. If the Nexus can keep up a place on this list, it will go a long way to securing long-term futures.
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. Mr. Anderson… People Are Fake T-Shirt ($19.99)
3. Jeff Hardy Enigma T-Shirt (Glow In The Dark) ($19.99)
4. The Best Of America’s Most Wanted DVD ($24.99, on sale $15.99)
5. RVD – Video Wall T-shirt ($19.99)
6. Hogan H Squared Limited Edition T-shirt ($29.99)
7. Destination X 2010 DVD ($19.99, on sale $15.99)
8. Unbreakable 2005 DVD ($9.99)
9. “Hulkamania” T-shirt ($19.99)
10. Beer Money / MMG “FANDIMONIUM” DVD ($19.99, on sale $14.99)
With Mr. Hogan and Mr. Bischoff of vacation, the folks at the TNAShop.com are also resting easy. Not that they do updates even when they are around.
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 upcoming weeks? The Personal Journal answers that question.
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, we begin with a game of logic courtesy of Miss Lindsie:
I am surprised that the WWE NXT got a good rating, since the battle royal stunk because of six winners.?
To this Miss Brookey gave the apropos response:
How would the ENDING of a TV show affect that show’s rating AT ALL?
There does seem to be a misunderstanding in the IWC of what ratings are. Ratings are lagging indicators of a shows overall performance. The reaction of the audience from one week is not reflected until the next week. Yes, there will be some trends in the show and a decreasing rating during a broadcast is never a good sign, but the real testament is what happens in the following week.
Now to something more based in reality gpjunk asks:
I knew WWE is profitable (despite all the commenters on this site who like to declare its dying) and I was glad to hear TNA is profitable even if it’s a small margin. A few million is still a few million.
My question is what about ROH?
I have to assume they are profitable because they’ve been around awhile but is there room for growth or would a three month slump kill them? Also how would you estimate the overall health of the pro wrestling industry is the US?
I keep hearing about how threatening the rise of MMA is to the wrestling business but I would estimate between the big three and all the independents there is at least $50 million in profits in the wrestling industry in a down economy no less and that doesn’t sound like a threatened industry to me. Wrestling may have contracted some from the heyday of the Monday Night Wars but it seems to me that the money is still there.
ROH was in trouble for a while, which is why they started to only use local talent, cut back on the number of tours, drop PPV entirely, and go to VOD web model instead of most regular DVDs. These efforts appear to be working as the company is stable and is likely profitable my a small margin. Their numbers cannot be anywhere near TNA’s, but they stand the chance to be doing well especially since they have few fixed costs and regular staff. Also, HDNet has made some investment in the company that has eased their burden.
As for competition, forget about MMA; everything is competition to wrestling. At the end of the day, wrestling–like any sport whether real or predetermined–is a form of entertainment that is in competition with every other form of entertainment.
With the profitability, the WWE alone last year had Operating Profits Before Taxes, Depreciation, and Amortization of nearly $78 million, so your estimate is quite low. What a lot of people do not realize is the WWE makes far more in revenues and profit now than they did during the Monday Night Wars Era. At the time, the WWE did not have the controls it has now, the product diversification, nor the global reach. The reason the WWE went public in the first place was to raise money to start new ventures, so they did not have all of the leverage they have today.
Moving on to trademark law, Guest#1062 states:
“On top of that, trademark law only works where the products are similar. So another wrestling organization already called NXT like SWA had could have a case. But what does a golf ball have to do with wrestling?”
What do pandas have to do with wrestling? Nothing, but they still won.
Sorry, Guest, but that case was not about trademarks. In the early 1980’s, the World Wrestling Federation and the World Wildlife Fund came to an agreement on how either company could use the initials “WWF”. They had a contract that specifically outlined the use and that contract was signed in perpetuity. In the mid-1990’s, the WWE launched WWF.com. Obviously, a contract signed in the 1980’s would not have a provision for websites, but that is what the World Wildlife Fund sued over. They said that the use of the initials WWF for WWF.com went beyond the original contract and the that the World Wrestling Federation did not have the rights to use them. The British courts agreed (re: in the UK, this case never came to the USA) and said the WWE had violated the original contract.
The case took years and was finished in 2001/2002. By that time, the WWE decided they were ok with rebranding their entire company instead of just doing something special in the UK. As such, they volunteered to change their name and image. Despite this, the WWE has several “WWF” and “World Wrestling Federations” trademarks on file today and can use them as they please, pursuant to the original contract with the World Wildlife Fund.
Jumping over to TNA, several people have been commenting about TNA’s supposed buyrates. The Journal has not commented on them because there has been no confirmation that the buyrates are real or any secondary sources confirming them. As such, consider the buyrates that are out there to be rumors at best. That said, Guest#4917 sums up everything the Journal has said about TNA and PPV:
TNA’s business model does not depend on PPV revenues, so changing their business model is not necessary.
Dixie Carter has been on record and it has been repeated here at least twice a month saying that TNA is leaving the PPV business when their contracts are over.
So that is the end of that topic.
Moving on to a more interesting and topical discussion, Andy asks:
During the closing angle on Impact this week, the commentators regularly referred to “the guys from ECW”. How is it that TNA can refer to ECW, and clearly attempt to use the trademark for their own creative purposes, when it is completely owned by WWE? Is this legal? And if it is illegal, would WWE realistically attempt legal action, and risk giving TNA exposure?
It’s not “illegal” in the sense that someone can be arrested, but it is against trademark law. The WWE clearly owns the rights, history, logo, and video library of ECW. Saying that someone once “worked in ECW” is fine because that is the truth. However, TNA is presenting the ECW crew as coming from ECW and representing ECW. That is where they will get in trouble as presenting someone as a representative of ECW implies the WWE condones the actions since they own ECW.
To get a real world example, look no forward than the original Outsiders in WCW. At the time, WCW presented Scott Hall and Kevin Nash as being under contract to the then WWF and that they were literally invading WCW. The WWF sued WCW because by presenting it so, it made it look like the WWF was in support of WCW using their trademarks. Although the case was settled out of court and no fault was admitted by WCW, it was a case the WWE had a full right to make.
The difference between WCW and TNA is that WCW had large pools of money, especially after the lawsuit when they were at their peak. TNA cannot handle a very large lawsuit from the WWE and the WWE can use this as a reason to go after them. The question for the WWE is if it is worth their time and resources, or if they will just send a cease and desist order?
Back when NXT launched, there was a small independent wrestling organization that was advertising Billy Gunn and Jesse James. The WWE sent them a very stern cease and desist letter that the company in turn posted on their website. The WWE may just do the same to TNA here and TNA will back down because they do not want to go to court on this. There are plenty of other things they can call the ECW guys, although naming a PPV “One More Stand” was probably not the best way to show they are moving away from using WWE trademarks.
As for the exposure, the case would not get very much attention outside of these circles, so the WWE has little to worry about there. Again, it is just a question of effort and dollars and if it is quicker and cheaper to use a cease and desist letter and TNA complies, then everything will come to an end quickly.
Plenty more was written, so be sure to take a look. And if you enjoy the Journal, why not bookmark 411wrestling.com and make it your home page? You can do that by clicking here.
This concludes Issue #147 (Volume 2) of THE HAMILTON AVE JOURNAL. Join us next week as we get ready to ring the bell again.
Till then!
