The Hamilton Ave Journal 07.05.08: Volume 1 – Issue 41

Posted by JP Prag on 07.05.2008

TNA signs huge deals in the UK, creates a new program with IGN, and expands their house show circuit all while the WWE contemplates making SmackDown live and Mexico invades the California. All that, plus the WWE sees a ratings bonanza, TNA sells trading cards, and Ric Flair fights it out with Jeff Hardy, Edge, Shawn Michaels, John Cena and Triple H in the Top Ten.

THE HAMILTON AVE JOURNAL
By JP Prag

Volume 1 – Issue 41

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.




WHAT'S NEWS

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: TNA makes big deals, expands house shows

Although ratings were down for another week of TNA iMPACT in the USA (see Marketplace below), TNA has continued to forge ahead and sign deals to bring them more revenue that is hopefully translating into a positive bottom line. This has been especially true outside of the US market, where significant growth is occurring.

First up, TNA signed a new deal with Bravo in the UK to air TNA iMPACT in its full two-hour format on Saturday nights. Bravo2 already has the rights to air TNA PPVs the Wednesday after they are shown in the USA, and that deal has been extended as well.

Concurrently, TNA signed a Video-on-Demand (VOD) deal with BT Entertainment, also in the UK. BT will have the exclusive rights to TNA Xplosion and will also gain TNA PPVs 14 days after they are shown on Bravo2. For £4-a-month, viewers will have access to the least expensive amount of commercial-free TNA programming in the world.

All three components of these deals were negotiated by RDA TV: "TNA's exclusive worldwide media rights agency". The terms of the contract started July 1, 2008 and run through December 31, 2009. Says TNA President Dixie Carter about these deals:

"TNA is delighted to have reached agreement with two of the world's largest media companies. TNA programming on Bravo gives our brand a strong presence in the UK and good accessibility to viewers on PAY TV. Our relationship with BT Vision will provide wrestling fans an alternative media to watch our programming, as well as the first launch of TNA Xplosion in the UK."

Also this past week, TNA signed a deal with IGN.com to provide a new magazine style show called "TNA on IGN". The show is described by TNA Chief Marketing Office Steve Allison (who recently joined TNA from Midway Games, makers of the TNA iMPACT video game due out this September) as a chance to tie together the IGN audience with the TNA audience with:

"… exclusive interviews, viewer interaction, video game reviews from TNA Superstars and a behind-the-scenes look at ‘iMPACT' that will give IGN viewers access that no sports entertainment company has ever given their fans,"

IGN.com, according to Mr. Allison, has an audience of nearly 30 million people that TNA would like to tap in to. TNA obviously sees marketing and growth potential from the gamers market, and this relationship with IGN just before the official launch of their own video game can help corral those site visitors into television viewers and potentially PPV buyers.

With all of these big deals, TNA has also been working on their core business by expanding the house show circuit. A large tour was announced for August that includes:

August 14, 2008: Estero, FL

August 15, 2008: Dallas, TX

August 16, 2008: Lawton, OK

August 17, 2008: Muskogee, OK

August 22, 2008: Salina, KS

August 23, 3008: Topeka, KS

August 24, 2008: Wichita, KS

While expanded house show business is a good sign of growth, TNA needs to be careful with how many new shows they add. One of their key selling points for workers is the lighter schedule, and they need to continually balance that. In the past, after these long tours TNA has given the crew one and half to two weeks off, so that pattern may be repeatable here as well.

Of a similar note, ticket sales for the UK tour in January 2009 (which went on sale on June 30, 2008) are said to be doing surprisingly well. TNA booked a number of arenas that were 5-10 times larger than the arenas they went to the first time. It looks like TNA has found a strong base in the UK and the two deals noted above should help expand that audience.

Currently, there is no word on how ticket sales are going for Hard Justice in New Jersey which also went on sale on June 30, 2008. TNA drew well for Lockdown in Lowell, MA, but Massachusetts and New Jersey are very different communities. This reporter will be on hand for Hard Justice just as this reporter was for Lockdown, so a true comparison by the same eyes will be possible.


SmackDown going live?

Word began spreading this week that the WWE is contemplating having at least some episodes of SmackDown be live after the show moves to MyNetworkTV on October 3, 2008. Originally, UPN wanted the show taped because it gave them time to evaluate the product before it came on the air. During that time, the WWE discovered that they saves a lot of money on production costs and time on the road, so it worked out well for both parties.

One episode has been confirmed live, and that is the April 3, 2008 edition of SmackDown before WrestleMania 25. Other than that, SmackDown is scheduled to be taped every Tuesday now through September (although when ECW leaves them still remains up in the air; perhaps September). That said, the WWE has no scheduled SmackDown tapings for October, a sign that they are still considering this idea.

The main option that is floating around is that SmackDown will normally be taped on Tuesdays as normal but that on PPV weekends the show would be live. Either way, changing the taping day means an extra day on the road for the already overworked production crew. Kevin Dunn would have to make another live show happen and stretch his workers to the max while adding additional costs. It remains to be seen if SmackDown being live would increase ratings, but live episodes have traditionally done better in the past.


Newsbites

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

After having their Triple-Mania event available on some PPV outlets in America, Mexico's AAA promotion is planning on holding two events in the United States. These shows will be on July 26, 2008 in San Jose, CA and July 27, 2008 in Los Angeles. This is a rare occurrence as normally a promotion will trade workers with an American promotion to gain ground state-side. AAA must have done commendable work in order to overcome visa and travel issues which have plagued TNA when dealing with foreign workers.

On the subject of visa issues, TNA was unable to get Volador Jr. and Averno to the last set of iMPACT tapings due to not processing immigration paperwork in time. TNA needs to get better organized with their paperwork and processes. More office help may be needed, especially with the growing number of international contracts and planned events.

Shortly after gaining a bathroom two weeks ago, WWE development organization FCW did an empty building test for television recordings. The story is that they now have a timeslot on a local CW affiliate station (the soon-to-be former home of SmackDown), but that they will not begin airing tapings until after WrestleMania 25, over nine months away. As a note, just before WrestleMania 24 there was a rumor that FCW was going to begin tapings just after that event, but that has not come to fruition. This story (via PWInsider) may have been combined with the previous story and that is why the timeline does not make sense.


MARKETPLACE

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. Please note that gaps in the chart below are due to data not being released/available.

For the week ending Thursday July 3, 2008, here are the current standings of our shows:





RAW
Close (This Week's Rating): 3.5
Open (Last Week's Rating): 3.4
Percentage Change: ▲ 2.9%
52-Week High: 4.1
52-Week Low: 2.5
All Time High: 8.1
All Time Low: 1.8

SmackDown*
Close (This Week's Rating): 2.3
Open (Last Week's Rating): 2.2
Percentage Change: ▲ 4.5%
52-Week High: 2.9
52-Week Low: 2.2
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): 1.4
Open (Last Week's Rating): 1.2
Percentage Change: ▲ 16.9%
52-Week High: 1.7
52-Week Low: 0.6
All Time High: 2.3
All Time Low: 0.6

TNA iMPACT**
Close (This Week's Rating): 0.9
Open (Last Week's Rating): 1.0
Percentage Change: ▼ 12.6%
52-Week High: 1.2
52-Week Low: 0.9
All Time High: 1.2
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

Analysis:

This past week was certainly a ratings bonanza as all three WWE brands so a bump up. While Smackdown and ECW are still in their annual range, RAW managed to retain viewers from the three-hour show, an important note. That said, this has only been one week and there is not much of a trend yet. As shown in the Journal a few weeks back, mid-June through early September is traditionally a cycle up month for the WWE. These ratings gains could just be part of the normal cycle and not reflective of a substantial audience gain. In several months, the Journal will revisit the projected ratings and compare to the actual averages thus far.

Meanwhile, TNA iMPACT was the only loser of the week, slipping 12.6%. This week's ratings will be fighting against the holiday weekend, so it is not likely to climb at all. TNA has traditionally done well on holidays, so there is no worry of a major loss this year.


MONEY AND INVESTING

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 ten selling items for the WWE? From WWEShopZone.com:

1. Jeff Hardy Armbands ($15)
2. Hardys Purple Logo Pendant ($10)
3. The Rock: The Most Electrifying Man In Sports Entertainment DVD ($34.95, on sale $19.62)
4. Shawn Michaels Faith T-Shirt ($25)
5. WWE Black Gift Bag ($3)
6. Triple H Hammer T-Shirt ($25)
7. John Cena 8-Bit T-Shirt ($25)
8. Edge Easy Being Sleazy T-Shirt ($25)
9. Nature Boy Ric Flair DVD/T-Shirt Package ($59.95, on sale $25.63)
10. Nature Boy Ric Flair- The Definitive Collection ($34.95, on sale $19.80

Here is something that has been missing from the WWE Top Ten list for some time: a mix of active performers. This week, Jeff Hardy, Shawn Michaels, Triple H, John Cena, and Edge were all represented. The remainder of the list went mostly to the Rock and pre-orders for the new Ric Flair DVD. Ric Flair is not that far removed from being an active performer, so that is not as bad as the Rock dominating the list for weeks. It is a good sign to see other performers in the mix, but history has shown that this will most likely not last.

TNA releases a list of Top Ten selling items, but the list has not been updated to current products in quite some time. Until TNA updates the list, the Journal will be take the list of featured products and sorting by most popular. When done so, the list comes up as:

1. TNA Global iMPACT DVD ($19.99)
2. Autographed TNA Wrestling Program ($79.99)
3. AJ Styles "Unim Phenomenous" T-Shirt ($19.99)
4. Nash "Big Sexy Tour" T-shirt ($19.99)
5. Complete 100 Card Set ($24.99)
6. Samoa Joe "Drastic Times, Drastic Measures" T-Shirt ($19.99)
7. Sting "Logo" T-Shirt ($19.99)
8. Blaster Pack ($24.99)
9. TNA "Cross The Line" T-Shirt ($19.99)
10. Shark Boy "24:7" T-shirt ($19.99)

Once again, there was not much movement on the TNA list except the continual rise of the Blaster Pack. TNA has found a strong growth product in their cards lines. Don West's history of selling collectable trading cards is most likely helping in their marketing efforts.


PERSONAL JOURNAL

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
6 (Jul) SmackDown/ECW Live Pensacola, FL	7 RAW New Orleans, LA	8 SmackDown/ECW Baton Rouge, LA	9	10	11 RAW Live Lexington, KY	12 RAW Live Charleston, WV SmackDown/ECW Live Savannah, GA
13 TNA Victory Road Houston, TX RAW Live Roanoke, VA SmackDown/ECW Live Augusta, GA	14 RAW Raleigh, NC SmackDown/ECW Live Asheville, NC	15 SmackDown/ECW Charlotte, NC TNA iMPACT Orlando, FL	16 TNA iMPACT Orlando, FL	17	18 TNA Live Tyler, TX	19 WWE SuperShow Springfield, MA TNA Live Monroe, LA

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.

EDITORIALS

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, the Journal has a correction to make. A pointed about by VickieGuerrerois HOT!!!!!!!!!!:

CSI isn't on USA Network.

paladin181 came back with the corrected response:

I think perhaps you mean Law and Order, as CSI is run on Spike.

That is exactly what was meant by the Journal. The USA Network gets much of its ratings success by Law and Order reruns. Spike, as noted, does get much of its rating placement by CSI reruns.

To new topics, Steve307 makes a request:

I demand a Curry Man shirt from TNA!

There actually is a Curry Man T-shit and it is featured on TNA's online shopping homepage. This item has yet to reach the Top Ten, though. Still on the topic of merchandise, Hardys reiterates (again and again and again):

You do realise that that Jeff Hardy has had the Armbands & Purple Pendant in the top ten list just as long as John Cena's t-shirt.

By the way I check the WWE Shop list everyday, and Cena wasnt even on the top ten list mid-week, Hardys merchandise has never fallen out of the top ten all year, so a little bit more credit to the Hardys instead of lauding it over Cena would be nice.

Hardys, as explained to you before, a prop for John Cena is in no way a knock for Jeff Hardy. As a matter of fact, in the Journal last week it was written in the thought before Cena:

Jeff Hardy added yet another item! It will be very interesting to see if the move to SmackDown increases or decreases Hardy's sales potential.

That said, you are incorrect in your analysis. Even checking back through issues of the Journal and Jeff Hardy has not consistently had both items in the Top Ten. You are correct in that Hardy has always had a presence, but it was not always with the same consistency of items. John Cena has had one item in the Top Ten while Hardy has had several items fluctuating in and out. These are both accomplishments, but there is another factor here that thehomewrecker! brings up:

Hardy's merchandise is 10-15 $ LESS than anything else WWE offers, (except the handbag)-- maybe that's why he's selling more... even so his armbands & pendant combined are the same as Cena's t-shirt, $25... I don't mind Jeff Hardy, He's great so credit to him for moving cheap merchandise! yay!!!

Point exactly. John Cena is selling one item that is more expensive the combination of Hardy's items. More importantly, John Cena's T-shirt has a gross margin in the neighborhood of 80% (if the shirt costs $5 to produce, then there is $20 in gross profit). Now look at Pendant. If that costs $5 to produce, then there is a 50% margin. In other words, Cena's merchandise consistently makes more top and bottom line for the company that Hardy's. That does not mean Hardy does not sell well. His sales surpass the likes of Triple H, Chris Jericho, Batista, Rey Mysterio, Shawn Michaels, and almost everyone else. He should be commended for such excellent sales, but there is no need to drag Cena's accomplishments down either.

Someone else who wanted more last week was Kris:

This was a very lazy analysis for the week. A keen eye should have been given to the fact that Mysterio and Carlito basically swapped brands so that Smackdown would have a Hispanic wrestler to satisfy one of their key demographics while using Rey's talents on WWE's flagship show. Or how about the fact that Henry was moved to Raw to become a headliner so that speculation of WWE's alleged racism won't become a public matter (as it relates to Hayes)? What about the fact that WWE invested its biggest star (Triple H) to a new brand? That says a hell of a lot to WWE's intentions to improve Smackdown, piss off the CW for dropping them, and exciting the Mytvnetwork so that WWE will be that network's cornerstone.

Well there is the analysis for you. In all honestly, there were 14 other articles on 411mania alone about the draft, making all of those points well covered. The Journal had nothing more to add, especially from the business perspective. As noted above, TMZ picked up the idea about Mark Henry, but everything else you listed is just a rumor or a thought. The Journal tries to stick to factual news and market analysis. It appears that you do not consider researching items like the history of WWE executive Lisa Richards or doing weekly analysis of ratings and merchandise sales as productive, and therefore that made last week's article a "lazy" edition for you.

Last this week is Sly Reference who is also considered about Mr. McMahon not being familiar with modern entertainment and trends:

"It would not surprise me if Vince not only has not seen anything produced by other companies in years, but that he has not seen much of his own product. Is Vince going to watch a DVR copy of RAW after he spent 10 hours at the arena? Most likely not. The questions remains if it is anyone's job to watch these shows and provide feedback; and if so, how critical are they?"

Actually, I was wondering if Vince has watched anything other than sports shows. He didn't get the Pirates of the Caribbean reference with Paul Burchill, and who knows how many other ideas he's shot down because he didn't "get" them. Most of the characters he approves are reworks of WWII-era stereotypes that worked in the 70s and 80s, but the world has shifted dramatically since then. Can you think of any character that's been introduced in the last five years that actually seems to be playing off of current events or current trends in show biz? Aside from Mohammed Hussein, and that's only because terrorism has been too big to ignore.

The only modern trend that he seems to have gotten into is reality TV, and that's probably because he thinks of wrestling as some odd form of it because it's done live. I wonder when the last time he saw a scripted performance, be it TV, movie, musical or play.

That is a good question, and the Journal will endeavor to find out from Mr. McMahon's own mouth.

Plenty more was written, so be sure to take a look. And of course, a week would not be complete without a good dose of JP Prag's own HIDDEN HIGHLIGHTS!!


CLOSING BELL

This concludes Issue #41 (Volume 1) of THE HAMILTON AVE JOURNAL. Join us next week as we get ready to ring the bell again.

Till then!