Guest ShooterJay Report post Posted August 4, 2002 From 411wrestling.com More details about the financial situation in NWA:TNA have been reported. The buyrates for the first show seems to be about 20-25,000, with a buyrate of about 10-15,000 for each subsequent show. The promotion originally allotted $240,000 in budget each week, which would need 50,000 buys to break even. Some of the cutbacks, in addition to changing buildings and eliminating managers/valets, is that major stars will be booked every other week. For instance, Ken Shamrock and Scott Hall will appear on every other PPV to cut back on their costs. The new budget is apparently close to $125,000, in the smaller buildings with less production and fewer talents, which would be a break even buyrate of 30,000. Company insiders say the breakeven point is 20,000, which means the cutbacks are greater than reported. TNA has a 52 week deal with In Demand. If they break within the first 13 weeks, In Demand pays TNA nothing, and it's all losses. If TNA breaks the deal before the 52 weeks are up, they have to pay a 13 week penalty. credit: Wrestling Observer Newsletter What exactly does this all mean. Does JJ have to follow through on the entire deal, just to recoup some money on this investment, or what? I guess, despite losses, it's a good deal, as we'd be guaranteed 52 weeks. But seeing as the breakeven point is still 5,000 buys shy of what they're drawing, that's still some pretty heavy loss, and may affect the quality of the show dramatically. Can someone shed light on what this all means? Share this post Link to post Share on other sites
Guest MarvinisaLunatic Report post Posted August 4, 2002 Hmm. So if the break even point is 20,000 buys, and they are getting at max, 15,000 buys, that means they are short about $50,000 a week. They won't last long like that, and I dont figure that they can make any more cuts without losing more buys. Share this post Link to post Share on other sites
Guest eirejmcmahon Report post Posted August 5, 2002 Hey Shooter, A lot of it boils down to just how big the "13 week penalty" is. Obviously if said penalty is bigger than whatever they've 'made' prior to that (ie if they go fifteen weeks at 20,000 buys and the 13 week penalty is greater than 3 million) then Jarrett will end up out of pocket on the whole deal. I don't have a clue about the figures normally involved in such penalities but something in the excess of 3 million sounds very high to me. Going by Marvin's estimate there, it looks like Jarrett will have bled around $600,000 once he gets past the first 13 weeks. NWATNA will have increased exposure in the States come September and they've managed to secure some kind of deal in Canada so they might find their extra 5,000-10,000 buys there. Their last show didn't get universal praise but at least it wasn't widly derided like the two shows prior to it. Share this post Link to post Share on other sites
Guest Your Olympic Hero Report post Posted August 6, 2002 Which is why they need some sort of national TV deal instead of weekly PPVs... Share this post Link to post Share on other sites
