It's looking more and more likely that AEW and Warner Bros Discovery have come to an agreement for a new media rights deal, with an announcement impending as soon as next week. Speaking on "Wrestling Observer Radio," Dave Meltzer offered his analysis on what the deal could look like for Tony Khan and his promotion.
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"A total worst-case scenario of the deal ... would be that the $170 million includes purchasing the rights to all pay-per-views, so AEW gets no more pay-per-view revenue and it's baked into that deal," Meltzer said. "Absolute worst-case scenario for revenue is $232 million, best-case is $282 million."
Meltzer soon clarified that figure, stating that the number did not include AEW's rumored deal with Fox, which would increase revenue even further. While there were some years that, when adjusting for inflation, WCW brought in more money, there's no denying that the new deal would be a major boon for AEW. The company is almost certain to become profitable, but it's difficult to say by how much.
"I think that I had figured in about $56 million in profits at $282 [million in revenue]," Meltzer continued. "But I'm sure that they won't do $56 million in profits ... because if they have $282 [million], I'm sure that [Khan is] gonna spend it ... to expand the business. Whether it's hiring more people in the office, buying more wrestlers, whatever it is."
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AEW notably made some cutbacks earlier this year to save money, specifically relating to "AEW Collision." Along with losing its Elton John theme song, "Collision" spent over a month in residency at the E-Sports Arena in Arlington, Texas. If Meltzer's estimations are correct, AEW will likely be back to expanding when the new contracts go into effect.
If you use any of the quotes in this article, please credit "Wrestling Observer Radio" with a h/t to Wrestling Inc. for the transcription.
