wrestling / Columns

The Hamilton Ave Journal 07.26.08: Volume 1 – Issue 44

July 26, 2008 | Posted by JP Prag

THE HAMILTON AVE JOURNAL
By JP Prag

Volume 1 – Issue 44

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 Hamilton Ave Journal

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: TV-PG for the WWE

After years of risqué storytelling, simulated fellacio, bloody brawls, swearing, and late primetime hours, the WWE has decided to scale back all programming (RAW, SmackDown, and ECW) and make them more “family friendly”, earning a TV-PG rating.

Although blatant crassness is often uninteresting and shock TV wears thin, one must believe that part of this is a mistake. Launching WWE Kids Magazine, creating kid-friendly versions of programming, having a kids website, and having some wrestlers be more appealing to younger viewers (Rey Mysterio, CM Punk, Jeff Hardy, etc…) is one thing, but completely changing the entire program for one demographic is a different story all together.

The WWE needs younger viewers, that much is sure. The average age for a viewer is over 25 and viewers drop off significantly in their older age block. Over the years, the WWE has not been able to backfill with younger viewers and therefore has seen an overall domestic audience decline. That said, targeting this audience may alienate the current one, risking more years of down ratings before they can be replaced.

The WWE tried to be more family orientated in the early 1990’s and nearly went into bankruptcy as a result. At the time, they were reeling from a steroids controversy and needed a way to take attention off of them. They began to put smaller guys in the main spotlight (Bret Hart/Shawn Michael, compared to CM Punk/Rey Mysterio), had more cartoonish characters (Doink the Clown compared to Hornswaggle), lighter tones storylines, and less blood. But it was not until Steve Austin, the Rock, and the rise of the Attitude Era that the WWE because the financial juggernaut it is today. Not saying the WWE needs to repeat that style, but they do need to learn and grow from it, not go backwards.

The other concern is that WWE is programming too much for American audiences. Right now, 30-35% of revenues come from non-domestic sources, and that number is growing every year. By programming just for American audiences instead of for larger and different global markets, the WWE may be seriously harming their international growth hopes.

WWE updated Wellness

On July 21, 2008, the WWE released a list of changed to the Wellness policy and reiterated changes already made this year. The changes are from the WWE in italics.

Retaining ImPACT Inc. to manage operations and administration of the Talent Wellness Program. Through ImPact, WWE obtained the services of Dr. Joseph Maroon as the program’s Medical Director. He will coordinate a team of physicians and medical personnel for program implementation.

This is a change from the WWE’s Dr. Black who came under incredible scrutiny following the Chris Benoit double murder/suicide. Skepticism has been running rampant on Dr. Black’s effectiveness since so much testosterone had been found in possession by Mr. Benoit, prescribed to him by Dr. Phil Astin. It looks like the WWE has finally acquiesced to another first and doctor to do their analysis.

Publicly announcing suspensions of performers. As of November 1, 2007, suspensions resulting from violations of the Talent Wellness Program have been announced publicly. More than 30 suspensions have been issued since the start of the Talent Wellness Program.

Although still at this time the reasons for the suspension remain unknown.

Adding new drugs to the list of banned substances in the program. Anti-estrogens have been added to the list of banned substances due to their ability to be used to mask the effects of steroid use.

This is a good step as new drugs and tricks are being thought up all the time. Still, no effective test for HGH has been found, which is the most abused enhancement drug right now.

Mandatory pre-contract cardiovascular, drug screening and physical exams for potential new performers.

Why sign a contract with someone who is unhealthy? The WWE should not take on liability for a performer who is damaged for what they did on their own time.

Mandatory cognitive tests for performers to monitor brain conditions. WWE is now using The ImPACT™ Concussion Management Program for all WWE performers. The ImPACT program is used by the National Football League, the National Hockey League, Major League Baseball, Major League Soccer, and the NCAA.

This is interesting, as the WWE vigorously denied that concussions had anything to do with Chris Benoit and practically disowned Christopher Nowinski because of his insistence otherwise. Despite their denial, the WWE has added the exact test that Nowinski wanted, showing that they actually do see a link and want to be prepared for it.

Expanding drug treatment services to former performers. For the past 20 years, an important component of WWE’s efforts to deter its performers from abusing drugs has been its commitment to assist performers in receiving appropriate drug rehabilitation and treatment programs. WWE has expanded this offer to include any individuals who had ever performed under contract to WWE during their careers. More than 500 letters were sent out to former performers in September 2007. So far, more than a dozen former performers have sought assistance, and we continue to receive calls to our 24-hour hotline inquiring about the program.

This is the most generous program the WWE has. Despite whatever the motivations may be, this program is far more effective than any suspension, public humiliation, or depush could ever be.

All and all, there are positive changes for the Wellness program. The WWE needs to continue to update and grow the policy as the years move on to be an effective and strong organization. There are still too many questions about the holes in the program and too many performers with questionable bodies, especially in the developmental system in FCW.

TNA bringing it in house

For the past year, TNA has successfully been expanding their house show market, having sell out and near sell out shows in England, Canada, New York, the mid-Atlantic, the mid-West, and hopes to add California, Texas, Southeast, and Australia soon to the list. During this time, they have also taken over the independent bookings of all of their talent, sending them all over the globe for extra cash and goodwill. Now that the company is expanding house shows even more and looking to raise talent pay, they are reconsidering how much, if any, outside bookings they will allow.

Although not under contract, Moose Knuckles broke her leg at a high school show in front of a crowd of less than 100. When with the company, Judas Mesias also suffered serious injury in Mexico. With less control over their talent, TNA is fairing for the talents’ health and their own long term plans and bottom line.

So long as TNA can support their talent, this seems like a sound idea. The balance question remains, though, as many wrestlers come to TNA for a lighter schedule and less travel. Travel wears on the body just as much as being in the ring, and the more these guys are on the road for TNA, the greater risk of injury and/or burnout. TNA must continue to balance their own financial interest versus the health and well-being of their contracted talent and crew.

Newsbites

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

  • The NWA had to cancel an event in South Texas due to Hurricane Dolly. The area where the show was to be held has been declared a disaster area.
  • FCW TV tapings continue to sell well as the second week sold out of tickets in ten minutes. Still no word on when and where the show will premier on TV.
  • Despite initial low buyrates, ROH is set to return to Canadian PPV on August 1, 2008 with Respect is Earned. It remains to be seen if this is a one-time test or the beginning of a new contract.
  • WWE Films is being renamed WWE Studios as the division focuses on direct-to-DVD movies and some television specials. The plan for the division now is to produce four to six films a year with a budget of around $5 million per film.
  • Dawn Ostroff, entertainment president of the CW Network, recently sat down with the Television Critics Association and was asked why the CM was dropping comparatively high rated SmackDown in favor of low-rated Gossip Girls while also moving their “urban comedies” to Friday night. Ms. Ostroff said that even though the ratings were high, the audience was wrong for what the new CW wants (Women 18-34). Specifically she said,

    “There was virtually no flow between the audience that watched WWE and anything else on CW. We decided the most important criterion is branding the network.”

    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 24, 2008, here are the current standings of our shows:

    Ratings

    RAW
    Close (This Week’s Rating): 3.3
    Open (Last Week’s Rating): 3.2
    Percentage Change: ▲ 3.1%
    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): 2.4
    Open (Last Week’s Rating): 2.3
    Percentage Change: ▲ 4.3%
    52-Week High: 2.9
    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): 1.5
    Open (Last Week’s Rating): 1.4
    Percentage Change: ▲ 5.6%
    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): 1.1
    Open (Last Week’s Rating): 1.0
    Percentage Change: ▲ 5.0%
    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 was quite the positive momentum week for wrestling ratings as everything went up 3-6%, a rare case indeed. Still, the percentage increases put the shows in line or behind where they were just a year ago, with one exception. In July 2007, the average ratings for each show were:

  • RAW: 3.3
  • SmackDown: 2.6
  • ECW: 1.3
  • iMPACT: 1.1

    Compared to July 2008 (to date):

  • RAW: 3.3
  • SmackDown: 2.1 (this was affected by Independence Day)
  • ECW: 1.4
  • iMPACT: 1.0

    So the big winner thus far is ECW, which is showing a year-over-year increase of 7.7%.

    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. Hardys Purple Logo Pendant ($10)
    2. Hardys WWE Shop and Jakks Pacific Exclusive Action Figure ($34.99, on sale $24.99)
    3. WWE Superstars Binder with Pencil Case ($15, on sale $9.98)
    4. Hardys Backpack ($25)
    5. Triple H Hammer T-Shirt ($25)
    6. Jeff Hardy Armbands ($15)
    7. Jeff Hardy Self Portrait T-Shirt ($25)
    8. WWE Party Supplies Pack ($25)
    9. WWE Black Gift Bag ($3)
    10. Shawn Michaels Faith T-Shirt ($25)

    It was a landmark week for Jeff (and by extension) Hardy as he not only added 2 more items to the top ten and knocked John Cena out, but added items that were far above the price point he normally sells at. First, coming in at number four is the Hardy Backpack, a higher priced item with a lower margin. Bigger than that is a new Jeff Hardy T-shirt coming in at number 7, a higher priced item with a very large margin. Congratulations to Jeff Hardy for making such merchandise improvements and breaking a barrier he has been upable to for months. Now, if these items have longevity or are knocked out in the next week will be the interesting thing to watch.

    As mentioned above, the other major milestone is the loss of the John Cena 8-bit t-shirt. This is the first time the item has been missing from the list since John Cena’s return in January. It is quite possible that the shirt has finally reached market saturation and that John Cena is need of a new item. How soon Cena premiers a new shirt remains to be seen, or if this is just an aberration and there is another surge about to come.

    More details about the WWE’s Top Ten are covered in the Editorials section below.

    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. AJ Styles “Unim Phenomenous” T-Shirt ($19.99)
    3. Complete 100 Card Set ($24.99)
    4. Nash “Big Sexy Tour” T-shirt ($19.99)
    5. Samoa Joe “Drastic Times, Drastic Measures” T-Shirt ($19.99)
    6. Sting “Logo” T-Shirt ($19.99)
    7. Blaster Pack ($24.99)
    8. TNA “Cross The Line” T-Shirt ($19.99)
    9. Shark Boy “24:7” T-shirt ($19.99)
    10. Curry Man T-Shirt (B) ($19.99)

    Over in TNA was the complete opposite of the WWE in that there was almost no movement save one: Curry Man made his first appearance in the Top Ten. The masked warrior from the orient who competed with Team TNA in the World X-cup has seen his shirt quickly rise up the charts. Will Curry Man be able to surpass his sometimes partner Shark Boy and the current TNA Heavyweight Champion Samoa Joe? Only time will tell.

    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

    27 (Jul)

  • RAW Live
    Altoona, PA
  • SmackDown/ECW Live
    White Plains, NY
  • WWE Misc Live
    Hyannis, MA
  • TNA Live
    Kenansville, NC
  • 28

  • RAW
    Washington, DC
  • TNA iMPACT
    Orlando, FL
  • 29

  • SmackDown/ECW
    Hershey, PA
  • TNA iMPACT
    Orlando, FL
  • 30 31 1 (Aug)

  • RAW Live
    Springfield, IL
  • TNA Live
    Corpus Christi, TX
  • ROH Live
    Manassas, VA
  • 2

  • RAW Live
    Evansville, IN
  • SmackDown/ECW Live
    Johnson City, TN
  • TNA Live
    Laredo, TX
  • ROH Live
    New York City, NY

  • 3

  • RAW Live
    Bowling Green, KY
  • SmackDown/ECW Live
    Chattanooga, TN
  • 4

  • RAW
    Knoxville, TN
  • SmackDown/ECW Live
    Macon, GA
  • 5

  • SmackDown/ECW
    Atlanta, GA
  • 6 7 8

  • RAW Live
    Wildwood, NJ
  • TNA Live
    Ashbury Park, NJ
  • 9

  • RAW Live
    Newark, DE
  • SmackDown/ECW Live
    Syracuse, NY
  • 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, Steve307 remembered how popular the Big Gold Belt is in sales:

    I was at the first Pistons home game after they won the championship in 2004. When they came out with the replica big gold belts, I’ll admit that I marked out a little.

    Basketball and Football players seem to be especially appreciative of championship belts, but TNA has demonstrated that baseball players often think the same.

    Davis wants to jump to the current FCW roster:

    Just went to FCW’s website. Thankfully there are a few guys there who look like they have gimmicks and interesting names.

    What’s weird is almost all the white guys have Randy Orton style tattoos but only on one part of their bodies.

    Seriously if these guys want to look tough why not get skulls or animals or something? The tribal tats are just going to make them look like Randy Orton Wannabes.

    Remember a few years ago the WWE actually warned many of their younger wrestlers about the amount, size, and style of their tattoos, but that does not seem to have deterred anyone. And yes, there are a few guys in FCW that have a unique look for now, but will that last when and if they are called up to main roster?

    Jumping into sales, Alex ponders:

    I’m surprised the new Ric Flair dvd isn’t on the top 10. It’s been out for a few weeks already, and I’m sure there were a bunch of pre-orders before the release date.

    Especially since so many other Ric Flair packages sold very well in the weeks leading up to the DVD. But overall, DVD sales are generally behind t-shirt sales. Still, wait a few weeks more as sometimes there is a lag when it comes to sales numbers for DVDs.

    Sticking with the money, Dingo want to know:

    Just a random question: Has CM Punk been in the Top Ten for WWE shop? Also who do you think is more marketable: CM Punk or Mr. Kennedy?

    On the days that the Journal has pulled the Top Ten, CM Punk has not appeared. Not to say he has not been there, but there is no record in the Journal. As for marketability, at current CM Punk is for several reasons. First, he is on the main show and the World Champion, giving him far more exposure. Second, he connects with the varying demos of the audience (marks, smarks, kids, women) while Mr. Kennedy connects with a smaller set at the moment. Third, CM Punk is more colorful. Literally, with his look and style, there are more options for different products to different demographic. That does not mean Mr. Kennedy cannot become more marketable in time, as Stone Cold Steve Austin showed. When Austin premiered in the WWE, one would say that Shawn Michaels was by far more marketable. But t the end of the day, Austin ended up being the most marketable individual person since Hulk Hogan.

    Also on the Top Ten, He, John D, Jeremy, and Well to be fair tracked the WWE’s list all week, keeping track of Jeff Hardy and John Cena items. At various points, the score was (respectively) 4-1, 4-3, and 5-0. Like said above, Jeff Hardy has had an incredibly successful week and John Cena is starting to reach market saturation. One week does not make a pattern, but it is still extremely (no pun intended) impressive. John D summed it up best:

    Based on this list it’s pretty obvious who the big merch sellers are.

    That it is.

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

    Till then!

  • article topics

    JP Prag