Dixie Says Break Even Point is Near

[TNABaddboi 0]

Here's the article:

 

Cheryl Hall:

Ex-Hockaday girl wrangles wrestlers

 

TNA broadcasts air in 118 countries, to debut on Spike TV

 

08:29 PM CDT on Tuesday, September 27, 2005

 

 

Her Hockaday classmates would never have imagined Dixie Carter as the princess of professional wrestling.

Nor would her former colleagues at Dallas-based Levenson & Hill Inc. have thought she'd use her marketing finesse to resuscitate a young grappling company.

But as fate would have it, the 40-year-old who attended prep school and launched her career in Big D is now president of Nashville-based Total Nonstop Action Wrestling, the second-largest wrestling promo company in the world.

"Oh yeah, I used to dream about this in my Hockaday green-plaid skirt," says Ms. Carter.

It competes against World Wrestling Enterprises Inc., the highly profitable and publicly traded wrestling giant that generated $366 million in revenue last year.

Fans know Ms. Carter's company – which uses a six-sided ring and a six-sided wrestling cage for its innovative matches – as TNA.

In another bizarre twist, her parents, Bob and Janice Carter, who own Dallas-based Panda Energy International Inc., also own TNA Entertainment LLC.

The 60-something couple, who are more familiar with power plants than power lifting, bought the wrestling company from HealthSouth Corp. in 2002. It had been a pet investment project of then chief executive Richard Scrushy.

Under Dixie Carter's leadership and with her parents' money, TNA broadcasts air in 118 countries. It has deals with Marvel Enterprises Inc. to license action figures and Navarre Entertainment Media to distribute home video. As of next week, its DVDs will be sold at retail chains in the U.S. and Canada, including Wal-Mart, Toys "R" Us and Best Buy.

Spike debut

And Saturday night at 10 p.m. Dallas time, TNA will debut on Spike TV as part of its Slammin' Saturday Night line-up. The shows – as much theater as confrontations – will re-air Mondays at 11 p.m. to draw Monday Night Football viewers after the game.

"All our moons are aligning with beautiful timing," Ms. Carter says.

Ms. Carter runs TNA's business and promotional sides and manages the creative side. But she doesn't write the scripts.

Scripts?

"It is real bumps, real hits," Ms. Carter says.

"These athletes are literally flying through the air doing these amazing things. But there are certain elements that are 'predetermined.' "

So the fix is in?

"Let's just say it's Shakespeare to the masses," she says. "People know Tom Cruise is not really so-and-so in a movie. But for two hours they pay money and suspend their disbelief. What we do is no different. We combine athletics with entertainment."

Spike TV, which bills itself as the "first network for men," reaches 88 million U.S. and Canadian homes. For the past several years, Spike had been the TV home for WWE, but it's moving back to USA Network.

Spike wasn't looking for a wrestling replacement but was blown away by the action and athleticism of TNA, says Brian Diamond, Spike's vice president of sports and specials. He and Ms. Carter were at Universal Studios in Orlando on Tuesday filming the first TNA/Spike shows.

"When you hear the name Dixie Carter, you think Designing Women ," Mr. Diamond says. "But she is tough as she is sweet – and tough in a good way. She made believers out of us."

How it happened

So how did this 1982 Hockaday School grad and her parents wind up in wrestling?

It started in the parking lot of the Hackberry Creek Apartments in Los Colinas in 1986. That's where Ms. Carter met Jeff Jarrett, a pro wrestler and co-founder of TNA.

"He came up to me with his blond locks and asked me what I did. He said he was a professional wrestler. His last name was my mother's maiden name, so it stuck. Months later I heard about him on Letterman. So I thought, 'Oh gosh, this guy's for real.' "

In 1993, Ms. Carter packed up a U-Haul "and like a bad country song, headed for Nashville to start my own entertainment company."

She was handling music promotion and representing pro football players when a music booking company recommended her to the fledgling wrestling company. At her introductory meeting, lo and behold, there sat Jeff Jarrett.

She took on TNA's marketing promotions and PR duties. "The business was everything I didn't expect it to be," she recalls.

A bailout

Just three months into the job, she talked her dad into bailing out the company after Mr. Scrushy cut bait.

"I knew this would be a completely nonstrategic investment for Panda Energy, but I also knew my dad is one of the greatest entrepreneurs in the world," she says.

Mr. Carter's only experience with pro wrestling was watching Gorgeous George as a little boy and Dallas' Von Erich dynasty later on. So why did he finance such a risky start-up?

"I don't care if she is my daughter, Dixie is one of the damnedest salespeople in the world," Mr. Carter says. "If you see her coming, lock your doors."

Besides, her sales pitch made sense: WWE was a Hertz without an Avis. "TNA wasn't a one-trick pony," he says. "It draws revenue from eight or nine categories."

And the price was right. The Carters bought the company in 2002 for about $250,000 because HealthSouth wanted to boot TNA off its books. At the time, TNA was bringing in more than that every month in pay-per-view.

"Then we started plowing money into it," says Mr. Carter, actually laughing about a current "burn rate" of about $1 million a month. "Of course, we have revenue coming in to offset some of that."

Some, but not enough.

Given the confluence of merchandise, Spike TV, pay-per-view, an upcoming deal for video games and growing international interest, TNA will be at break-even next month. Father and daughter expect to see some return on Mr. Carter's considerable investment early next year.

"After that," he says, "the upside is tremendous."

 

Thoughts?

[Guest MikeSC]

If true, I wish them well.

[BruiserKC 0]

The Jarretts and Dixie have built up to this point...they have their TV deal and so far the ads Spike has run are good. They are making TNA out to be a totally different alternative to what the WWE is and that's what is going to make people tune in.

 

I'm obviously looking forward to TNA as it has been really four years since wrestling has had alternative options available on a major cable network. Now's the time for TNA to get the first-class treatment by having Spike go all out and give it every chance to succeed.

[geniusMoment 0]

I stopped reading after she wrote second biggest wrestling company in the world. If you are writing a story, even if it is about wrestling, is it really that hard to do just a little research?

[Eclipse 0]

I thought WWE, when publicly mentioned was World Wrestling Entertainment, not Enterprises....

[The Thread Killer 0]

Interesting. If they do finally break even, I wonder what the reaction by all of the "OMG THEY'RE GOING TO GO BANKRUPT ANY MINUTE NOW~!!!" people will be?

[Open the Muggy Gate 0]

Interesting.  If they do finally break even, I wonder what the reaction by all of the "OMG THEY'RE GOING TO GO BANKRUPT ANY MINUTE NOW~!!!" people will be?

<{POST_SNAPBACK}>

 

"...

 

OMG THEY'RE STILL GONNA GO BANKRUPT IN A YEAR~!!!!"

[Ripper 0]

I stopped reading after she wrote second biggest wrestling company in the world.  If you are writing a story, even if it is about wrestling, is it really that hard to do just a little research?

<{POST_SNAPBACK}>

 

Wouldn't it be though. TNA airs in other plenty of other countries. We don't get the other countries stuff on this side of the globe.

[dubq 0]

I stopped reading after she wrote second biggest wrestling company in the world.  If you are writing a story, even if it is about wrestling, is it really that hard to do just a little research?

<{POST_SNAPBACK}>

 

Seriously. I guess it's because America = The Entire World, or something.

[TNABaddboi 0]

Wouldn't it be though. TNA airs in other plenty of other countries. We don't get the other countries stuff on this side of the globe.

 

That's a good point. Isn't TNA seen in something like 100 plus countries? How many companies other than WWE have that kind of exposure. Just asking for argument's sake.

[Fro 0]

You can probably make the argument that they are #2 in the number of people their show reaches (Eurosport and Spike alone is around 200 million homes).

 

Money-wise and as far as drawing crowds, they're behind quite a few promotions in Japan and Mexico.

[TNABaddboi 0]

You can probably make the argument that they are #2 in the number of people their show reaches (Eurosport and Spike alone is around 200 million homes).

Money-wise and as far as drawing crowds, they're behind quite a few promotions in Japan and Mexico.

 

That's kinda the logic I assumed the writer was using (the reach one), because drawing money couldn't have been his/her standard. They mention they losses reached $1 million a month, which would disprove the argument if that was the case. If the standard is reach though, I'd have no problem with that claim though.

[Guest MikeSC]

You can probably make the argument that they are #2 in the number of people their show reaches (Eurosport and Spike alone is around 200 million homes).

 

Money-wise and as far as drawing crowds, they're behind quite a few promotions in Japan and Mexico.

<{POST_SNAPBACK}>

They are presently #2 in the same way the Arena League is the #2 pro football league in America.

[TNABaddboi 0]

They are presently #2 in the same way the Arena League is the #2 pro football league in America.

 

I know you meant that as a joke Mike, but I actually think that's a great comparison. If TNA could grow into what the Arena Football League has become (a profitable, almost 20 year old company), they'd be happy. They are very similiar: Both were scoffed at in the beginning, operating before small crowd on a show string budget, both were (or could be in TNA's case) saved by a decent TV deal (AFL with ESPN, TNA with Spike) and both are not trying to compete directly with the #1 company, but provide an alternative brand of the same concept. AFL is football, but it's absolutely nothing like what the NFL provides, and TNA has taken strives to be the same way, which is good.

 

The AFL loses the traditionalists who say "I can't watch, the field is 50 yards and I don't know these players," but otherwise gets people who enjoy football and will watch it, but would never watch a game if it aired at the same time as the NFL. That's how I started watching, though I never watched NFL Europe because it was the exact same product, only less interesting. Right now, TNA is hoping for the same type of thing. They may lose the traditionalists who say "I can't watch, the ring has 6 sides and who are these guys anyway?", but if they can get people who like wrestling to watch on Saturday nights, when WWE used to be on, and on Monday nights, when wrestling is over, they'll be fine. I'm sure that eventually TNA envisons themselves competing with the WWE, I think they'd be wise to use the AFL as a guide. Provide an alternative, because people who want to watch what the WWE offers will watch what WWE, and they be around long enough to reap those profits Dixie talks about. Even if Spike moves them to a better slot and say makes Mondays the first showing, they might be wise to consider airing before or after Raw, so people don't have to choose until TNA has shown them why they should choose them.

[Guest MikeSC]

I was actually serious. The AFL is what it is. It's fun as hell to watch, but it's hard to really get passionate about. That's TNA for me. It can be fun, but it never really draws me in.

 

TNA can find its niche and work it --- if it wants to.

 

But I doubt it'll want to. I imagine, like every company, it'll want to directly challenge WWE and it'll die in the process.

 

The AFL's best decision was to not try to compete with the NFL, but to try and become a totally different product.

[TNABaddboi 0]

I was actually serious. The AFL is what it is. It's fun as hell to watch, but it's hard to really get passionate about. That's TNA for me. It can be fun, but it never really draws me in.

TNA can find its niche and work it --- if it wants to.

But I doubt it'll want to. I imagine, like every company, it'll want to directly challenge WWE and it'll die in the process.

The AFL's best decision was to not try to compete with the NFL, but to try and become a totally different product.

 

Well in that case, I couldn't agree more. I never really thought about it, but AFL being hard to get passionate about is kinda true. I just watch because its fun and there's not exactly anything else on Sunday afternoon's in February. But I clear my calendar for NFL Sunday. I did get wrapped up in the AFL conference championship game between Georgia and Orlando this year though, because I went and it was a really good game. So I guess it is possible to get drawn in, just difficult.

 

But anyway, back on subject, I agree that was the AFL's best decision and that TNA would be wise to make a similiar one. Even if they want to compete with WWE directly ratings wise, they will not win by out-WWE'ing them. They'd have to win by providing something completely different and convincing viewers they're cooler. If you look at why Nitro took of in the first Monday Night War, it was because they were everything Raw was not. They were live, Raw was taped once a month. They were edgy, appearing to go "off script", while Raw was match, interview, match. And finally, they were cool (NWO) and Raw was not (almost everything non-HBK/Hart/Foley/UT and pre-Austin). So even to compete, they have to try to provide a totally different product. The AFL trying to provide a different product is the reason they didn't go the was of the USFL....and TNA should learn from that.

[dubq 0]

You can probably make the argument that they are #2 in the number of people their show reaches (Eurosport and Spike alone is around 200 million homes).

 

Money-wise and as far as drawing crowds, they're behind quite a few promotions in Japan and Mexico.

<{POST_SNAPBACK}>

 

I don't know, I'm fairly sure that New Japan television reaches as many countries.

[BruiserKC 0]

Right now TNA is still trying to feel its way around and get its footing. The last thing it needs to do is jump into competition with Vinnie Mac. The sleeping giant would wake up and crush TNA into dust. It's just so funny that all people want to say since TNA got their TV deal done is "When are they competing with WWE?" TNA needs to just do their own thing right now and maybe down the road consider removing the glove and pistols at 10 ratings points.

 

Another thing...you know Vince is going to look at the talent at TNA and think..."Which of them would fit into my company?" Right now, TNA is still a stepping stone to some who might decide to want to make the leap to WWE. TNA will need to be able to keep the pipelines flowing with new talent. And in reverse...TNA will need to eventually get to the point that WWE talent not being used properly may decide to look with longing eyes to Dixie's company. So, that the next time a Jericho or an RVD or Christian's contract is up for renewal it's not a slam dunk to re-up with Vince.

[Guest MikeSC]

TNA's best alternative is to NOT compete with the WWE. Don't mention them, don't refer to them, don't worry about them. WWE has a business model that nobody can touch (they can be profitable off their tape library alone). TNA needs to simply let them be and make damned sure to not discuss this as if it were a war. You annoy Vince enough and, as the AWA learned, your life can suck.

[cabbageboy 0]

I dunno, I read last week that WWE has trademarked "Rob Van Dam" and it'd be truly hideous to see him go to TNA as Robbie V or something lamer than that (Rob Van Deadly?).

 

Right now, what is the real incentive of a WWE guy to defect to TNA? There is far less money in it, and in the end you'll just be Jeff Jarrett's job bitch instead of HHH's.

 

NWA: TNA can be a nice little alternative on Spike, but to me they are competing with OVW more than WWE (quite literally, both shows are on Sat. at 11:00 here in Louisville...I'll have to tape one or the other).

 

I still think they outta emphasize the NWA part more. TNA is a fine name for the show itself, but it's hardly a name for the promotion itself. It just sounds...cheesy?

[Guest MikeSC]

Thing is, JJ and company do NOT want to be in the NWA any longer. They want to be a completely different promotion. If they don't have a new name in 2 years, I'll be shocked.

[cabbageboy 0]

Yeah but how can they not be the NWA? They're sorta locked into it really, and it's not like WCW where nobody realized the subtle difference or cared when they pulled out of the NWA (to most people the Crockett and later Turner owned promotion WAS the NWA). Also, the NWA TV show was already World Championship Wrestling so it was easy to just call the promotion itself WCW without anyone knowing or caring about the difference. How can TNA just say "Fuck it, we're not the NWA anymore?" Let's face it, some people care about guys fighting over the NWA world title...who would care about two guys fighting over something called the "Total Nonstop Action Heavyweight Title?"

[Guest MikeSC]

Have a match between JJ and somebody representing another promotion --- or have JJ represent another promotion (since he isn't jobbing). Have the match be for control of the company.

 

Blam --- new name.

[USC Wuz Robbed! 0]

They already dropped the NWA name in a lot of their stuff. The only thing that has the NWA name is the Heavyweight title.

[TNABaddboi 0]

They already dropped the NWA name in a lot of their stuff. The only thing that has the NWA name is the Heavyweight title.

 

Most of there stuff refers to the company as TNA Wrestling now, they even changed the website to tnawrestling.com. They haven't used NWA:TNA in at least a year and half. I'm sure they'll have a TNA World Title before they are just the NWA. They might not even create a new title. I wouldn't be surprised if one day Jarrett showed up toting a new belt and they called him the TNA world champion. But IMO, they either gonna make a big deal of their split (a la ECW) or just do it and hope no one notices (a la WCW), but it's going to happen.

[Guest JesusJuiced]

I believe TNA has the rights to use the NWA titles until 2014 (They withdrew in 2004, so I'm guessing it's a 10 year deal).

 

Apart from "renting" (for lack of a better term) the NWA World and Tag Titles, TNA has nothing to do with NWA whatsoever.

[razazteca 0]

What exactly is so important about NWA? To me its just a group of 20 or so small promotions that work out of civic centers and is nothing more than wrestling schools that has shows on the weekends. I know somebody will bring up the long list of champions from 1890-1980's but in this world of short attention spans and what have you done for me lately mindsets what value does the champions of the past have? I seriously doubt the fans of pro wrestling have the same diehard passion as fans of baseball. There are people who can tell you the starting lineup of the 1953 Yankees but who knows who was the NWA champion in 1997? TNA does not need NWA but the opposite is true in my opnion.