Originally posted by Janitor:
WWE had to layoff/furlough a bunch of people, which again is evidence that Vince pulled the plug on XFL primarily because he couldn't keep that cash in reserve to fund it anymore.
"Additionally, the Company has substantial financial resources, both available cash and debt capacity, which currently total approximately $0.5bn, to manage the challenges ahead. Management continues to believe the fundamentals of the Company's business remain strong and that WWE is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term"
It would then appear that WWE made these cuts not because of coronavirus but to simply maintain a profit margin. Journalist and WWE financial expert Brandon Thurston reported that despite the loss of revenue it is predicted that WWE would still make a record-setting profit in 2020, thanks to television deals. On Wrestlenomics, Thurston writes:
Ultimately, I concluded that if WWE doesn't run live events at any point for the rest of the year, WWE's revenue would be impacted by as much as $21m and operating income would be impacted by $42m. In such a scenario, I estimated WWE would still report record-setting profits in 2020, with an operating income of $121m and total revenue of $927 m – largely supported by continued TV rights fees, which I don't believe are at risk."