wrestling / Columns
The Hamilton Ave Journal 02.11.10: Volume 2 – Issue 124
THE HAMILTON AVE JOURNAL
By JP Prag
Volume 2 – Issue 124
ABOUT THE JOURNAL
The Hamilton Ave Journal is the only wrestling news report focused solely on the business of wrestling. Here in the Journal we not only look at the stories that are important to the investor and business-minded person, but also delve deeper into stories that most fans of wrestling would overlook. That is because the Journal is about getting the heart of the matters that affect the companies and outlooks of the wrestling world.
And where is Hamilton Ave? That is the location of the WWE Production Studio in Stamford, CT, and thus the most powerful place in the wrestling world. Besides, The East Main Street Journal just does not have the right ring to it.
Who am I? I am JP Prag: consultant, entrepreneur, businessman, journalist, and wrestling fan.
Now, ring the bell because the market is open.
The Journal’s front page area known as What’s News isn’t just about telling you what has happened. The stories in this section are about what will have an effect on the wrestling industry, individual federations, and the wallets of the fans.
LEAD STORY: What is next for NXT?
With the WWE announcing the formation of NXT, the Journal reported on the Scottish wrestling promotion with the same name. Going through the trademark offices in the UK, all signs pointed to the WWE being the first to file any paperwork to make “NXT” officially theirs, despite the Scottish brand existing for over three years. That NXT released a statement concerning the situation this week:
Global media giants (sic) World Wrestling Entertainment have recently announced their plans to launch WWE:NXT, the NXT Generation of wrestling. This has since been a cause for concern for Scottish promotion NXT Wrestling, a local company who risk getting squashed in favour of the multi-million dollar WWE headed by Vince McMahon.
NXT Wrestling was announced in 2006 and launched in 2007 as a way of giving young men with dreams their chance to break free from their lives and live for a few moments in the spotlight. NXT and it’s (sic) associated promotion the Scottish Wrestling Alliance have strived to bring quality family entertainment to towns and halls across the West of Scotland, culminating in the struggle to bring an ailing genre into the spotlight with events in Kelvin Hall, and has helped raise funds for charities including Torkhill Childrens Foundation.
When WWE announced their new brand as NXT, using the same tagline ‘NXT Generation’ and emphasis on developmental talent, staff and employee’s began to worry when they woke up to the new on Wednesday morning.
The announcement here is obviously meant to set up the “David vs. Goliath” struggle and paint the WWE in a disparaging light. What is not presented anywhere in this press release is proof that the company actually owns the initials “NXT”. As the press release goes on, it explains the origins of NXT as an offshoot of the Scottish Wrestling Alliance. That may be fine, but it does not give them much of a leg to stand on. SWA owner Peter Murphy then took it one step further when he said:
“Everyone at the Scottish Wrestling Alliance is honoured that WWE have decided to name their latest product after SWA’s feeder programme, NXT.”
Accusing the WWE of knowing of the existing of SWA:NXT and saying the WWE stole the name is a big accusation, one that Mr. Murphy may find he cannot back up and opens him up to a potential lawsuit instead of the other way around. Continues Mr. Murphy:
“We have had no direct contact from WWE regarding this matter but we welcome any conversation or resolution they would like to put forward.”
In other words, Mr. Murphy thinks he has a case and is looking for a payday from the WWE to resolve the situation. What he may find from his statements is that the WWE will turn the situation around on him.
With the many lawsuits covered by the Journal concerning the WWE, the company has shown little regard to long expensive fights instead of settling out of court. And if SWA thinks they are too small for the WWE to waste legal resources on, they need look no further than fellow UK indy Variety Pro Wrestling.
VPW received a number of letters from Lauren Middlen of the WWE Intellectual Properties Office because the company was advertising appearances by “Billy Gunn and The Road Dogg Jesse James”. According to PWMania, those letters consisted of:
The warnings or demands as WWE called them are as follows.
1. immediately cease and desist using WWE trademarks in connection with the upcoming VPW events
2. remove and recall all advertising bearing the WWE trademarks (print, online, etc.);
3. provide to WWE an accounting of all sales and inventory for any consumer products released, or planned for release which bear any WWE intellectual property.
4. confirm in writing that you have complied with all of WWE’s demands by replying to this notice.
WWE also claimed that by having BG James and Kip James billed as Billy Gunn and The Road Dogg on a VPW event is a short cut by VPW at trying to pass events off as a WWE event and cashing in on DX popularity.
If the WWE is willing to spend time to get the financial records of a small organization like VPW, how does SWA think they will stack up?
VPW did release a statement concerning the WWE’s allegations:
We have at no point tried to pass VPW off as a WWE event; our new advertising is solely based on brand awareness of the VPW logo which includes all online advertising at varsityprowrestling.com and printed advertising which has gone out on billboards posters and flyers across the south UK and all the planned VPW events will still take place with all confirmed stars.
Although the situations with VPW and SWA are quite different, the point is that when the WWE feels they are in the right and they have been challenged, they will use every resource they have to get their point across.
Newsbites
Some items of note in the rest of the wrestling business world:
In the Marketplace we look at the trends in television ratings. This section is less for critical analysis by the Journal but more for the reader to see what is really going on and to draw their own conclusions.
As with stocks, here in the Journal we track the progress of television ratings. If ratings are the barometer by which we judge the product, then over the course of 52 weeks we should be able to see patterns, trends, and anomalies.
For the week ending February 10, 2010, here are the current standings of our shows:
RAW
Close (This Week’s Rating): 3.6
Open (Last Week’s Rating): 3.6
Percentage Change: UNCH
52-Week High: 4.5
52-Week Low: 3.1
All Time High: 8.1
All Time Low: 1.8
SmackDown*
Close (This Week’s Rating): UNAV
Open (Last Week’s Rating): 2.2
Percentage Change: N/A
52-Week High: 2.3
52-Week Low: 1.6
All Time High: 5.8
All Time Low: 1.0
* SmackDown! ratings may include fast overnight if final ratings are not posted. Also, SmackDown! ratings are for the prior week as overnights are not available before this article goes to print.
ECW
Close (This Week’s Rating): UNAV
Open (Last Week’s Rating): 1.0
Percentage Change: N/A
52-Week High: 1.4
52-Week Low: 0.7
All Time High: 2.3
All Time Low: 0.6
TNA iMPACT**
Close (This Week’s Rating): 1.2
Open (Last Week’s Rating): 1.4
Percentage Change: ▼ 15.7%
52-Week High: 1.5
52-Week Low: 0.7
All Time High: 1.5
All Time Low: 0.6
** TNA iMPACT’s are for the prior week as ratings may not be available at the time of the Journal’s posting
SuperStars***
Close (This Week’s Rating): 1.0
Open (Last Week’s Rating): 1.0
Percentage Change: ▼ 3.0%
52-Week High: 1.1
52-Week Low: 0.7
All Time High: 1.1
All Time Low: 0.7
*** SuperStars ratings may include fast overnight if final ratings are not posted. Also, SuperStars ratings are for the prior week as overnights are not available before this article goes to print.
Analysis:
RAW may be looking flat, but this is actually a good things for the flagship WWE show. Now the show is tied in a seven week streak of 3.6+ ratings, the longest such streak since 2007. From February 19, 2007 to May 21, 2007, the WWE was able to do 3.6+ ratings for fourteen weeks. Given that it is WrestleMania season, the WWE may be able to tie that record, which would show the changes they made in product and direction are starting to pay off.
On the other end, TNA ended their streak of 1.3+ ratings at four weeks by scoring a 1.2 this week. Some may want to announce the doom and gloom of TNA, but a one week rating is no indicator of long term performance. During the peak of the Attitude Era, RAW sometimes had off weeks scoring in the upper 4 range while being flanked with shows that did 6+.
Meanwhile, as ECW nears its ratings are delayed this week due to inclement weather. One wonders how the show is doing as it gear up to its last episode?
We all know that wrestling is a business, but we don’t often pay attention to what sells and makes money. Money and Investing looks into the top selling items in the world of wrestling and any interesting figures that may have come out this week.
What are the top selling items for the WWE? WWEShopZone.com releases a list of varying numbers to show what is selling for them:
1. John Cena Never Give Up T-Shirt ($25.00)
2. John Cena Never Give Up Sweatband Set ($12.00)
3. Bret Hart Emblem T-Shirt ($25.00)
4. John Cena Never Give Up YOUTH T-Shirt ($22.00)
5. John Cena Never Give Up Baseball Cap ($20.00)
6. WWE Superstars Party Pack ($27.99)
7. WWE Black Gift Bag ($3.00)
8. D Generation X Worlds Biggest Member T-Shirt ($25.00)
9. John Cena Never Give Up Pendant ($10.00)
10. Hardys Personalized Basketball Jersey ($64, on sale $19.98)
11. Miz I’m Awesome T-Shirt ($25.00)
12. D Generation X Army Sweatband Set ($12.00)
13. John Cena Never Give Up Sweatpants ($29.00)
14. John Cena Attitude Adjustment T-Shirt ($25, on sale $14.98)
15. D Generation X Basics YOUTH T-Shirt ($9.99)
16. Bret Hart Emblem Sweatshirt ($40.00)
17. Hardys Purple Logo Pendant ($10.00)
18. The Best of Raw 2009 DVD ($34.95, on sale $19.80)
19. John Cena Attitude Adjustment Basics YOUTH T-Shirt ($9.99)
20. Rey Mysterio 619 Bracelet ($8.00)
Edge’s return did not equate to a second week in the top selling list, but Miz has again made an appearance taking the number eleven spot. Bret Hart expanded his stay by adding a new item coming in at number sixteen. Meanwhile, the rest of the list consisted of a little DX, Hardy, and Rey Mysterio places, but the real winner was John Cena. Mr. Cena expanded his impressive run to have 40% of the entire list. Once again, those who question why John Cena has a place in the WWE need look no further than this list.
TNA sometimes releases a list of top selling items on ShopTNA.com. According to the site the top selling items were:
1. Hulk Hogan – Change T-shirt ($19.99)
2. Don’s Insane Brown Bag Special ($20)
3 HOGAN JOINS TNA – Limited Edition Plaque and Card ($39.99)
4. “Hulkamania” T-shirt ($19.99)
5. Beer Money T-shirt ($19.99)
6. Emergence CD ($14.99, on sale $9.99)
7. Bound For Glory 2009 DVD ($19.99, on sale $17.99)
8. AJ Styles “Phenomenal Brand” T-shirt ($19.99)
9. Hard Justice 2009 DVD ($19.99, on sale $9.99)
10. Sting “Discharge” T-shirt ($19.99)
Mr. Bischoff should be less concerned with who to fire on TV this week and more concerned with keeping his marketing up to date.
Wrestling isn’t just about watching and reading. The best way to be a wrestling fan is to experience it live. Where is wrestling coming to in the next 2 weeks? The Personal Journal answers that question.
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Do you know a wrestling event coming up? Send one in to The Hamilton Ave Journal and we’ll be sure to add it to the list.
The Editorials section is designed for you, the readers, to respond to the views presented in the Journal, send an important news item, or talk about another overlooked business related item in wrestling. Just beware: the Journal reserves the right to respond back.
From the commentary section last week, Anonymous once again wanted to know about the volume of sales we report each week:
Is there any information available on the types of numbers WWE and TNA move through their online stores? The line about there only being 210 Hogan plaques really surprises me, as I thought TNA would have moved more merchandise through their shop than that. It just got me wondering exactly how much material each company moves.
No, nothing like that is publicly available. If the WWE and/or TNA would allow the Journal access to their backend databases, the Journal would gladly do those queries.
Sticking with merchandise, Jimmy was impressed with the Miz’s run in the top selling list:
Ever since his mini-feud with Cena last year, I’ve thought that The Miz has what it takes to be the next big star in wrestling! I just hope WWE don’t change his character beyond recognition like they did with Cena!
Unfortunately for you, the WWE’s change of character has made Cena the top seller in the company by far. Of course, it depends a lot on what the Miz can do with the opportunities presented to him.
Sticking in the purchasing venue, TNA’s PPV plan seemed at odds with many people’s thoughts. First up is Donners:
Unfortunate that TNA PPVs cannot be bought through their site from Australia. Many people here do not have access to the channel which airs their PPVs.
I also wonder how many UK fans will pay $US15, when they could previously see TNA PPVs for free – and still get most WWE ones free.
From what others are saying, not too many. It is a very difficult transition to take a product from being free to being paid, and you will lose people along the way. But if TNA can make more in PPV revenue then they would in broadcast rights fees, then even a smaller audience would be worth it. Since TNA has not traditionally done very much in PPV revenue, though, it would seem that broadcast rights fees would work out more in their favor. This was a point that Brett was confused about:
How would TNA move away from a PPV model?
I suppose they’d do more free shows to generate revenue in some sense but even if they somehow received all the advertising dollars for the program they put on, would it make more than a PPV? Maybe right now it would but in the long term, would it?
Surprisingly, Guest#9613 provided the coherent response:
Right now TNA isn’t getting PPV buys. The numbers are such that they may be losing money. The fact that Dixie Carter said that they would have moved away from PPV’s if it weren’t for existing contracts suggests that they aren’t getting much in the way of returns.
So they may not need to replace any revenues. They would be gaining revenues by not losing money. Addition by subtraction.
That is absolutely one way to look at it. The other way is that TNA makes such an amount on PPV revenue that the broadcast rights would actually be a higher (and quicker) form of revenue then the PPVs. In the WWE’s case, they could not do that as each PPV generates millions and millions of dollars and no network is going to pay that much for one “episode” of something that is essentially free six hours a week. In TNA’s world, they are not dependent on PPV revenue like the WWE is and could actually afford to completely not have it. TNA’s biggest areas for growth have always been in their broadcast rights fees which is why they are so gung-ho about getting more shows on the air and into other countries. If they can leverage what they have for new revenue in an area they are successful, it would be a much better direction for them in the long run.
Even looking at WWE’s buyrates, it is obvious that PPV is not the future of wrestling. This is why the WWE is trying out a number of other methods of content distribution and are looking into their own channel. Yes, the WWE pioneered PPV and it continues to be extremely profitable for them, but that is not a forever situation. In the WWE portfolio, PPV is going to be taking a much smaller place as the years go on and other forms of delivery will take its place. Why should TNA go into a market that is on the downward trend for their industry when they could skip it all together and go straight for other content delivery methods?
Guest#1260 (in response to another statement) sums up this thought:
Beyond the fact that you hardly know why people are really tuning in, TNA has not been making its money on PPVs anyways. So a measurable gain in ratings is very important. It grows revenues.
People who buy ad time care very much about how many people watch a show and the demographics of the viewing audience. As long as people are watching, they will be exposed to commercials. Breaking down people’s motivation in watching may not be of interest to them at all. After all, people weren’t tuning into Jackass to see high quality programming. Yet commercial time was still sold.
For TNA, if people actually watch they may be impressed enough to make it a habit. The longer exposure increases the chances of getting them to by PPVs and merch. If they are indeed moving toward a future without PPVs, ratings become their lifeblood.
In business, basing decisions on “I think” and dismissing every consequence is the fast track to unemployment. That is why there are market research teams: “research shows that . . .”
Truer words could never be spoken in the Journal.
Plenty more was written, so be sure to take a look. And if you enjoy the Journal, why not bookmark 411wrestling.com and make it your home page? You can do that by clicking here.
This concludes Issue #124 (Volume 2) of THE HAMILTON AVE JOURNAL. Join us next week as we get ready to ring the bell again.
Till then!
