Contracts with the WWE

[iliketurtles 0]

Reading the topic about the Rock and his contract, I was talking with a friend about how wrestling contracts work. So if you can contribute anything to this thread...feel free.

 

I know that Hogan made some crazy amount of money in his prime for main eventing Wrestlemania...specifically against Savage at Wrestlemania where he made over a million dollars (I'm not sure on the amount) for just that one match. I know he made $250,000 for his match vs. Vince at Mania 19, and he thought that wasn't enough and left the company in June of 2003. I've also heard that both Lesnar and Angle made $1,000,000 for their Wrestlemania 19 match.

 

I've heard about $25,000-50,000 a year is the average development contract, but I may be mistakened.

 

I'm sure more of you are more knowledgable about it then me, so just random tidbits would be cool. Thanks.

[spman 0]

I believe the way it works is that your pay depends on how buisness is doing. At the very least you will make your downside guarantee, 15,000-25,000 or someone like Paul London, 50,000-75,000 for someone like RVD and 100,000+ for someone like Undertaker. Depending on how buisness is, you could get paid considerably more then your downside, but the downside is the absolute least you will get paid. You also get a certain percentage of your merchandise sales, and if you wrestle on a PPV dpending on who you are and your position on the card, you get a bonus which is a percentage of the gate.

 

Downside guarantees now are much lower then in years past, this is why we saw the mass layoffs of guys last year who were relics from contracts given out when buisness peaked to guys like Test who have long since outlived their usefullness with the company.

[Guest Dazed]

From what I remember, it works like this:

 

You are signed to a contract for $x. This means that you will earn that amount regardless of anything else. This figure is (comparatively) low, though. That's your downside guarantee.

 

On top of that, there's more money for merchandise and PPVs. If you work a PPV, you'll make $x, but if you're in the main event or another marquee match then you'll make more. I don't know how Heat or dark matches fit into things.

 

Again, with merchandise, you'll either earn a percentage, or a lump sum when you sell enough shirts / keyrings / thongs.

[Art Sandusky 0]

From what I understand, a pen is involved.

[iliketurtles 0]

From what I understand, a pen is involved.

I'm assuming paper as well, but that might just be a rumor from Metzler too.

 

It would be interesting to read about what Austin made in merchindise sales in like 1998-2000...must of been insane amounts of money. I remember hearing a rumor about Raven and how he makes more money by wrestling indies every week then when he was in the WWE and I guess that makes sense with what business has been like the past few years, and if I recally they only gave him one t-shirt during his entire run.

 

One final question...for TV, specifically Raw or Smackdown, is there one equal pay for everyone or is it more varied like the PPVs because I'd imagine that not only is it required, but with how storylines come about, sometimes it doesn't matter if you're in the first match or the last match on Raw/SD.

[Use Your Illusion 0]

I read in Power Slam magazine a while back that Steve Austin made six million dollars in 1998 alone. That's the whole package though, PPV revenue and merchandise included.

[Eclipse 0]

Yeah, I always wondered the same thing about contracts. I knew merchandise sales and stuff like that mattered. If that "Austin made 6 million in 1998" is true....WOW.

[Guest DeathBecomesYou]

On the other hand, I remember reading about Spanky, when he was with WWE he was only supposedly making about 60 grand a year, which is why in the end he had enough and walked.

Also from Powerslam, in an article they reported Tajiri's initial WWE contract was for 90 grand a year downside.

If they've got to pay for their own travel costs, they're not really making much at all.

[Guest Loss]

They typically get quarterly checks based on royalties, PPV buyrates, merchandise, etc.

 

The way I *believe* it works is that that's all they get all year, and if by the end of the year, they haven't fully met their downside, they get a check for the difference. If they have made more, that's great.

 

The downside guarantee isn't a flat amount they definitely get in addition to the other money they make. The downside guarantee is instead the least amount of money they can possibly make in a year. I used to understand that differently, but that is the case.

 

The higher one is on the card, the higher his PPV bonuses are. A curtain jerker gets "x" amount of dollars, a midcarder gets "x+y" and a main eventer gets "x+y+z". I don't have a clue how they even begin to go about doing that now with all the double main events on PPV.

 

There's typically a delay. I think they get a check for Wrestlemania in May or June, for example. One's backstage behavior does often play a part in the amount he gets, and there a variety of unwritten factors that can influence how high or low it can go, which is in some ways Vince's subtle way of controlling the locker room. Jeff Jarrett, for example, probably didn't get nearly the amount of money he would have gotten had he stuck around, simply because he held them up for money the day of a big show and they were pissed off.

[jester 0]

I can't back it up with a source, but I hear merchandising makes a HUGE difference for the wrestlers' bottom line. Apparently most of them take a big hand in designing the stuff.

 

If true, it wouldn't suprise me if guys like Hurricane (who has a gimmick perfect for selling t-shirts) make more money from merchandise than from PPVs.

[Twisted Intestine 0]

I remember hearing a rumor about Raven and how he makes more money by wrestling indies every week then when he was in the WWE and I guess that makes sense with what business has been like the past few years, and if I recally they only gave him one t-shirt during his entire run.

Raven makes $1500 a booking I believe... So if he works a good amount of bookings a week that can build up fast.

 

I'm not sure what his contract was in the WWE however. Couldn't have been that high.

[Guest DeathBecomesYou]

I remember hearing a rumor about Raven and how he makes more money by wrestling indies every week then when he was in the WWE and I guess that makes sense with what business has been like the past few years, and if I recally they only gave him one t-shirt during his entire run.

Raven makes $1500 a booking I believe... So if he works a good amount of bookings a week that can build up fast.

 

I'm not sure what his contract was in the WWE however. Couldn't have been that high.

I'm not certain on this, but I think in his shoot he said he initially signed for the bare minimum just so WWE would give him a chance.

[Guest Hass of Pain]

I believe the way it works is that your pay depends on how buisness is doing. At the very least you will make your downside guarantee, 15,000-25,000 or someone like Paul London, 50,000-75,000 for someone like RVD and 100,000+ for someone like Undertaker.

Those numbers are way too low. Pretty much the rock bottom WWE downside guarantee is $60,000 which is what just about everyone brought up from developmental or imported from the Indies will be making. Guys like Booker T and Rob Van Dam make around the $90,000+ range and a guy like The Undertaker or HHH probably around $300,000 a year.

 

WWE developmental talent is given $500 per week, unless it's a rare instance like Lesnar who has seen as such a can't miss guy he was paid something crazy like $100,000 a year just to train in OVW.

 

Wrestler's with merchandise are given royalties based on sales, and guys like The Hurricane with good selling merchandise make as much as guys higher on the card. They also get payoffs for pay-per-views if they appear on the card and from liscensing like video games. Raw and Smackdown as well as promotional appearances are seen as part of their contractual obligations and they aren't paid anything extra for that.

 

The death of WCW really sucks for wrestlers because a guy like Chris Jericho for instance incited a bidding war and was offered as much as $600,000 per year by WCW at one point to stay and ended up signing with WWE for about $450,000, and when he renewed his contract with WWE not too long ago he was offered half of that. If you compare wrestling to any other professional sport, it's insulting to see that in the NBA for example the players are paid on average 75% of the total revenue the NBA brings in, while in the WWE it's at 15%. On top of that, WWE treats their employees as independent contractors (so independent they can't work Indy's without clearing it through the office) so that they can screw them out of even more benefits.

 

It's a shame, because guys making their downside of like $60,000 still have to pay for their own hotels, meals and rental cars and when you travel as much as they do you have to wonder if they even have any money left at all to show for the damage they have suffered to their bodies and the years they have probably taken off of their lives dealing with the stress of so much travel.

 

They really do need to unionize, but I would be afraid to suggest it too if I were in the WWE currently.

[Guest krazykat72]

On the other hand, I remember reading about Spanky, when he was with WWE he was only supposedly making about 60 grand a year, which is why in the end he had enough and walked.

Also from Powerslam, in an article they reported Tajiri's initial WWE contract was for 90 grand a year downside.

If they've got to pay for their own travel costs, they're not really making much at all.

They don't pay for their own airfare, I believe it's hotels and possibly rental cars they're responsible for.

 

 

-Paul Jacobi-

[Guest krazykat72]

WWE developmental talent is given $500 per week, unless it's a rare instance like Lesnar who has seen as such a can't miss guy he was paid something crazy like $100,000 a year just to train in OVW.

Lesnar's also a little different because both WCW and NJPW were bidding for him, so WWE overpaid to lock him up.

 

 

-Paul Jacobi-

[Kaertos 0]

It was always my understanding from reading Foley's books that they get a "travel stipend" in addition to being booked on flights by the WWE travel people. That's why Foley stayed in cheaper hotels and stuff, so he could keep as much of that extra cash as possible.

[Guest cosbywasmurdered]

I read that the new WWE contracts have 90day cycles in which the WWE can fire a work at the end of each cycle.

[UseTheSledgehammerUh 0]

6,000,000 in 1998 for Stone Cold?

 

I guess you could say that Steve Austin is the Six Million Dollar Man!

[iliketurtles 0]

.

[Guest webmasterofwrestlegame]

You are still grossly underestimating the guaranteed amounts - HHH, Undertaker and those sort of guys are 750k+ downside. Bottom of that is around the 75k range.

 

Guys get their initial flight to the starting 'loop' city paid for but have to pay all other expenses. Occasionally when a large distance exists between two towns WWE will pay for flights.

 

Wrestlers (or their agents) negotiate %'s of merchandise sales etc. around their contract. There is no set amount.

 

WWE will actually give permission to lower carders to appear on Indy cards (based on conditions like they do not lose) to help them out making extra money.

[iliketurtles 0]

A few questions...I'm assuming he's got a one year, million dollar contract because there's no way in hell they would sign him for 4 years and $250,000 in case he flops.

 

Big Show...didn't he sign a 10 year, 1 million dollar downside guarenteed contract? Mark Henry has the same one I think too.

 

This is from an old PWInsider.com thing:

 

 

In most cases, when WWE exercises their right to release a worker, it is done during a 90 or 180 day “review” period. It’s a clause placed in the standard contracts that is done totally for the benefit of WWE. Most of the workers’ deals are not guaranteed contracts, which means WWE can released them during these designated periods. WWE never liked giving out the guaranteed deals and only started to do so when WCW did the same in the mid 90s and they had to compete with them or they would lose wrestlers. The workers actually had good leverage then and were paid fairly. With WCW out of the picture, WWE doesn’t have to do that any longer. So usually when they release a talent they continue to pay them for three more months. They do that, at least in part, to keep the talent off of a competitor’s TV for that period. In a few cases, I can remember the workers passing on the severance pay so that they could become free agents right away though.

[Kizzo 0]

Wow....interesting contract stuff

 

I guess most of the money is given to the executives and the writers....the reason I mention writers is because of Chris Kreski....years ago on zap2it.com it was reported Chris Kreski signed a 7 figure deal with WWE...

[Guest FromBeyondTheGrave]

I don't see how you can have a relationship with a partner while in wrestling, unless that person is in the company with you. Considering you have to pay for food, travel expenses (hotel, rental cars, gas), taxes, insurance on yourself, and a place to live when you aren't on the road (a cheap apartment)...the money isn't exactly jumping out at you unless you're making 6 figures. I just couldn't picture having a spouse and/or girlfriend.

That's why they pick up a different chick(s) in each town, every week.

[Jobber of the Week 0]

All your contract questions are answered in long winded legal talk in this thread where someone posted the complete text of a WWE contract.

 

I can think of a few guys who have been breaking their contract:

TALENT shall establish his own method of physical conditioning, shall

select time for conditioning, duration of conditioning and form of conditioning.

TALENT shall select time for sleep, time for eating, and time for other

activities. TALENT shall select his own foods, vitamins and other ingested

items, excepting illegal and/or controlled substances and drugs, which are

prohibited by COMPANY's Drug Policy.

 

[iliketurtles 0]

Jesus christ. That's going to be a hell of a read. Thanks.

 

Well, you make at least $150.00 for wrestling on a house show. And at least $50.00 for a TV taping.

 

9.6 TALENT shall use best efforts in the ring in the performance of wrestling services for a match or other activity, in order to provide an honest exhibition

of TALENT's wrestling skills and abilities, consistent with the customs of the

professional wrestling industry; and TALENT agrees all matches shall be finished

in accordance with the COMPANY's direction. Breach of this paragraph shall

cause a forfeiture of any payment due TALENT pursuant to SECTION 7 of this

Agreement and all other obligations of COMPANY to TALENT hereunder, shall

entitle COMPANY to terminate this Agreement, but such breach shall not terminate

COMPANY's licenses and other rights under this Agreement.

 

Steiner/HHH @ Rumble 2003 said differently.

 

TALENT, on behalf of himself and his heirs, successors, assigns and

personal representatives, hereby releases, waives and discharges COMPANY from

all liability to TALENT and covenants not to sue COMPANY for any and all loss or

damage on account of injury to any person or property or resulting in serious or

permanent injury to TALENT or TALENT's death, whether caused by the negligence

of the COMPANY, other wrestlers or otherwise.

 

I wonder if they put that in there after Owen died.

 

Interesting read.

[Hunter's Torn Quad 0]

FTR:

 

Show is on around $950,000pa until February of 2009

Henry is on $250,000pa until around June of 2006

Lesnar's developmental deal was for $250,000pa, which is about five times the standard developmental deal was at that time. His new deal, which he negotiated, I think sometime in early 2003, was for $1.5mpa for seven years.

[iliketurtles 0]

Jesus Christ. That's some big time money.