The Hamilton Ave Journal 08.02.08: Volume 1 – Issue 45

THE HAMILTON AVE JOURNAL
By JP Prag

Volume 1 – Issue 45

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 expands offices and tour but loses talent

TNA has had an extremely busy week, starting off with an expansion of their tour of the UK (now through the British Isles). On Friday January 16, 2009 a show has been added to Dublin Ireland. Since there are four days between this show and the next on January 20, 2009 in Manchester, England, TNA may be looking to add one or two more shows or at least hold a fan fest. Otherwise, the talent will be trapped in England for eight to nine days for only five shows.

The tour was not the only thing that expanded in the world of TNA as the company announced the construction of a new 20,000 television production studio near their offices in Nashville, TN (which also recently expanded into additional space in the building). The studio will be used for post-production work on iMPACT (which will still be taped in Orlando, FL), Xplosion, and online shows, as well DVD and other media creation. The space will also house several meeting rooms, the tape library, and serve as storage for the growing merchandise department. Overall, this space will be used similar to the production studio the WWE has on Hamilton Ave in Stamford, CT.

During this expansion phase, TNA has been moving many of their employees to Nashville in an effort to have all office workers together. The notable exception is Rich Baker who serves as the live events coordinator. Mr. Baker is based in Stamford, CT and worked for many years under the WWE’s Ed Cohen. Since TNA has no one in Nashville to replace Mr. Baker and Mr. Baker is uninterested in relocating, he will most likely remain in Stamford for the time being. Still, his job is most likely in peril as TNA looks for a live-events coordinator who will report to their growing corporate office.

Meanwhile, TNA and Midway have begun a major media blitz to promote the TNA iMPACT video game set to arrive this September. Two trailers were released by Midway this week, to be followed up with video game footage taped for CMT and Spike for upcoming specials. At the same time, it was reveled that Midway—which has had several quarters of losses and has been going through major reorganization since January—absorbed the costs of the game and that TNA did not have a financial stake. Midway has made a large bet with the TNA iMPACT video game, and Journal wished them the best of luck with sales. Look for more late breaking information on the video game over Hard Justice weekend when this reporter and Jeff Small will be on hand for the official unveiling.

While there have been many positive signs in TNA, not everyone is happy. Tomko has been in disagreement with the creative team for some time and decided to part ways with the company this week. TNA also released Dustin Runnels (aka Black Reign) since they have nothing for him. At the iMPACT tapings this week, Kevin Nash got upset with the booking of his match and actually walked out of the arena, forcing a re-write of the show on the spot. Things appear to have calmed down, but that is a rather radical move for a contracted employee.

During the same match, Kurt Angle suffered a hard-way shot and was bleeding profusely, requiring medical attention. This is Mr. Angle’s nearly 10th major injury this year and a growing concern for TNA as they expand touring and shows. Although the lore of profit is great, TNA will need to again consider the balance of rapid expansion and workers health, especially in the long run. The Journal has long recommended a slower growth strategy instead of trying to create giant leaps, but thus far TNA looks more willing to make several large steps at one time.

ECW’s future still shuffling

For the past three months, rumors have circled that ECW would be moved to tape with RAW. At first, this was going to happen just after Night of Champions in June, but those plans were delayed until August. The WWE began selling RAW/ECW shows for August, but those changed a couple of weeks later to just RAW shows and the SmackDown shows at the time regained ECW. The story then seemed to be that RAW and ECW would tape once SmackDown moved to MyNetworkTV in October because SmackDown may be going live at least once a month (before PPVs), if not more often.

Now, the story coming from the office seems to be that the idea is dropped and ECW will tape indefinitely with SmackDown except during some international tours for SmackDown in the late fall and early winter. The reason for this stems from RAW being a hectic show since it is live every week so having another taped show before RAW could be an issue. This seems odd since until just a couple of months ago HeAT was taped before RAW and did not seem to hinder production.

But during all of this, it was reveled in a press-release on the WWE going TV-PG that ECW would be moving back to 9:00pm starting September 30, 2008 (the week SmackDown premiers on MyNetworkTV). Since ECW tapes before SmackDown, this will actually give less time to post-edit ECW before it goes on the air. This also seems to contradict earlier reports of the WWE wanting more time to edit the show, but may lend credence to the show being taped before RAW more often in the future.

WWE really goes Hollywood

In a major coup, the WWE was able to sign Freddie Prinze Jr. to a creative team contract. Although the WWE has hired many Hollywood writers in the past (most of whom were unfamiliar with the product), this is the first major name they have signed to the company in a writing role. Mr. Prinze seems generally excited about joining the company and has been demonstrating his knowledge of the product and history on WWE.com and in several media outlets. Other mainstream news organizations have picked up on the story as well, which has sat well with many WWE’s offices.

Still, it remains to be seen how long Mr. Prinze will stay with the company. WWE creative team members travel on the road to television tapings with the talent, have fast paced deadlines, and have no breaks. Mr. Prinze is more used to writing and producing movies and limited episodic TV. This job may end up being too much a time commitment for Mr. Prinze and he will be forced to leave the company in short order.

Newsbites

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

Recently, WWE granted stock options to all Senior Vice Presidents. This addition of stock came just in time for the latest quarterly dividend of $0.36 a share of Class A stock. Per usual, the McMahon family will only receive $0.24 a share of Class A and B stock.

WWE has a new lawsuit on their hands as Twyla Riley of Kansas City has filed a complaint against the WWE for a fall she took at the SmackDown tapings on May 19, 2007. According to Ms. Riley, a railing gave way that the was leaning on and the WWE is at fault for this. The WWE will most likely file for a complete dismissal due to not being the pertinent party in the case—the arena owners being the most likely party.

Stu Hart’s former home in Calgary, Alberta, Canada is up for vote to become a local historic monument. If the resolution is passed, any future owner of the home would be barred from making significant exterior and interior modifications. The Hart home contains the basement “dungeon” where Stu and his sons trained many of today’s top wrestlers.

The ratings rise in TNA in recent weeks (see Marketplace below) may be heavily thanks to the Knockouts division. The July 17, 2008 edition of iMPACT featured a Knockouts gauntlet match scored a 1.25 quarter hour rating, the highest quarter hour rating in TNA history. The match also gained 264,000 viewers from the previous segment.

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 31, 2008, here are the current standings of our shows:

RAW
Close (This Week’s Rating): 3.6
Open (Last Week’s Rating): 3.3
Percentage Change: ▲ 9.1%
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): 2.4
Percentage Change: UNCH
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): 1.4
Open (Last Week’s Rating): 1.5
Percentage Change: ▼ 6.7%
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): 1.1
Percentage Change: ▲ 4.8%
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:

Another overall positive week in the ratings world as RAW gained back nearly everything it lost last week while SmackDown remained unchanged and ECW only lost 0.1 (6.7%). On the same front, TNA also saw an increase of 0.05, a 4.8% gain, putting them in line with another chance of a hitting their all-time high of 1.2. Still, TNA has not shown the ability to consistently grow and maintain ratings, as well convert viewers to PPV purchasers. With the fall rapidly approaching, all wrestling shows are in for some stiff competition with many shows that did not return after the writers’ strike starting fresh. Having this strong momentum coming into the fall will be extremely important and a challenge for all of these wrestling brands to undertake.

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 WWE Shop and Jakks Pacific Exclusive Action Figure ($34.99, on sale $24.99)
3. John Cena 8-Bit T-Shirt ($25)
4. Great American Bash 2008 DVD/T-Shirt Package ($49.95, on sale $18.65)
5. Shawn Michaels Faith T-Shirt ($25)
6. Hardys Purple Logo Pendant ($10)
7. WWE Ultimate Rivals Trading Cards ($2)
8. John Cena Camoflauge (sic) Backpack ($25)
9. Undertaker Backpack ($25)
10. Triple H Hammer T-Shirt ($25)

After a week away, John Cena returned in force with not only his 8-bit t-shirt coming in at number 3, but is camouflage backpack coming in at number 8. So last week now looks more like the aberration than the rule, but that did not stop Cena from wearing a new shirt on Monday that did not seem to hit the Tope Ten this week. Also continuing his strong streek is Jeff Hardy, with the usual array of lower-prices, lower-margin items. Hardy had a new t-shirt on the list last week that was incredibly important to solidifying his position, but that looks to have been replaced with an uptick in Shawn Michaels and Triple H shirts.

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)

Zero movement on TNA’s list this week, so the quest for Curry Man to rise above Shark Boy in the Top Ten continues.

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
3 (Aug) 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
10 TNA Hard Justice Trenton, NJ RAW Live Salisbury, MD SmackDown/ECW Live Binghamton, NTY	11 RAW Richmond, VA SmackDown/ECW Live Reading, PA	12 SmackDown/ECW Norfolk, VA TNA iMPACT Orlando, FL	13 TNA iMPACT Orlando, FL	14 TNA Live Estero, FL	15 WWE SuperShow Rockford, IL TNA Live Dallas, TX ROH Live Cleveland, OH	16 WWE SuperShow Valparaiso, IN TNA Live Lawton, OK ROH Live Chicago Ridge, IL

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, there was plenty of discussion around the WWE going completely TV-PG. nwa88 said:

I’m not sure I really agree with the assertion that the WWE targeting children is such a mistake. The “Rock-n-Wrestling Connection” was all about the teenyboppers and capturing an audience that was younger then the typical fan at the time that had probably been watching what they knew as wrestling since the 1950s and 1960s. The WWF brought a whole new national audience at the time, which included older fans of course, but they were catering to the youngest generation right from the start — I think Hulk Hogan had his cartoon within a year of his first title reign and the action figures were certainly ubiquitous early on. The most important WWF programming angle-development wise was on Saturday mornings just after cartoons in almost every market in the country.

There is nothing wrong with having characters, storylines, and promotions that target children, but to do it exclusively is the issue. Even during that time, you have the Randy Savages and Ricky Steamboats of world to satisfy the work-rate demographic and the serious side, the Big John Studs and Andres the Giants to satisfy the hoss demographic and spectacle side, etc. Remember that during the WWE’s national expansion they played terribly in the south, mid-Atlantic, and mid-West for so long because those people had the more adult/sports oriented product for so many years. It took the WWE a long time to emulate SOME of that and gain a bit of that demographic. But considering 5-6 million less people watch wrestling today than in 1999, they still eventually lost them. Damn follows the same logic:

I don’t know, I’ve given up hope on WWE. Turning their show into TV-PG for the kiddies is a big mistake. Half of there audience you see on RAW and SmackDown are young adults and teens. If they go to friendly version it would drive them away. The glorious days of the WWE are dead.

Your point about driving away the rest of the audience is well taken. By trying to make their product more “family” (i.e. kid) friendly, the WWE will eliminate much of their existing audience. Look at a movie like Shrek to see a product that appeals to many different generations and is layers in subtext. That is what the WWE (and TNA) should look to as an example of how to take a product across different demographics and get wider acceptance, not focused acceptance in a smaller target audience. Rorster makes a similar point:

In regards to the age issue, I’ve been a fan of WWE since I was 6, I’m now 21 – going on 22 (2 months time). I was a fan of the Hogans of the company when really young, then as I grew older I liked characters like Bret Hart & HBK (circa attitude) and later Austin/Rock (circa 1997) because those types of characters appealed to me (a then 11 year old). WWE doesn’t need to drop the entire company to a more “family-friendly” level – it just needs more characters that would appeal to different age groups and better exposure for said characters (Look at the kids reaction to Cena – the little nippers loved him when he got the title)

True, and if John Cena, CM Punk, and Rey Mysterio are the for 6-11 demographic; Batista, the Big Show, and Jeff Hardy are for the 11-18 demographic; and Triple H, Edge, and Chris Jericho are for the 18-34 demographic then there are several wrestlers for different demographics at the same time. Of course, there is another option as themusicemperor points out:

Just make RAW the adult show, SmackDown the kids show, and ECW whatever they want it to be. If you have 3 shows targeted to different demographics it broadens your fanbase; plus differentiates your shows.

The Journal would whole-heartedly support this method as one of the larger issues with the brand extension is the lack of differentiation among the brands. At one point, RAW and SmackDown only shared 35% of their audience. Now, the share 75% of the same audience but have 30% lower ratings. Differentiation and having different audiences may actually increase ratings overall, if executed effectively.

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

Till then!