WWE

Could WWE ditch PG product due to financial problems?

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WWE could be forced into a position where it reverts back to its 1997-2004 'Attitude Era' heyday, if it becomes a privately owned company again.

The biggest wrestling franchise in the world has suffered a mad mid-May disaster in finance, with huge company losses accumulated by their share prices plummeting.

The company's problems have seen owner Vince McMahon lose millions of dollars in recent weeks - including over $340 million in just one day back in April 2014, which has reduced his personal net worth to below the $1 billion mark.

WWE has been a public trading company - assuming a position on the international stock market - since 1999, but may seek refuge in becoming privately owned again to escape such monumental losses.

The primary difference between WWE being a public trading company and a privately-owned one is its stock, which can be bought by anybody all the while they are listed as a public trading company.

If they chose to revert back to private, they would boast more creative freedom from not having to appease share-holders, but would also likely lose out on a large revenue stream from family-friendly sponsors.

It would be smart business for WWE to maintain the status quo as public, but if McMahon and the company's share-holders lose much more money, they may have to seriously consider the alternative.

If that were to happen, it means McMahon and his flagship could more or less do anything they please as far as on-air story-lines and content goes.

This could see a return of an edgier product, reminiscent of the group's aforementioned 'Attitude Era' boom period, which produced mammoth profits and a more lively television output.

Characters such as beer-swilling, foul-mouthed redneck Steve Austin and renegade faction De-Generation X have been ousted in recent years, in deference to the current, cosier PG characters such as John Cena and The Miz.

But considering the booming success the largely teenage male audience brought the group when they were operating as a private company, it is a viable option for WWE to cut their losses.

The company are embroiled in multiple legal disputes and investigations from various legal firms over potential wrongdoings on the stock market, as well as their heavy losses.

If WWE were to revert to an edgier product if they drop off the stock market and go private, it would open up avenues of creative freedom and potentially make wrestling 'cool' again.

The only stumbling block remains the WWE's commitments to family-friendly sponsors such as Mattel and K-Mart, and the revenue generated from those advertisers.

Equally important to McMahon's troupe is their status as part of the mainstream, which provides them with far more exposure and credibility. That mainstream status would be severely inhibited if WWE were to go back to being edgy, despite the probable support from its hardcore fan-base.

The company stands at a crossroads, and must decide whether to stick or twist in their gamble on the stock market.

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Topics:
John Cena
WWE
Vince McMahon
Stone Cold Steve Austin
The Miz

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This article has been written by a member of the GiveMeSport Writing Academy and does not represent the views of GiveMeSport.com or SportsNewMedia. The views and opinions expressed are solely that of the author credited at the top of this article. GiveMeSport.com and SportsNewMedia do not take any responsibility for the content of its contributors.

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