Wall Street analyst writes about the financial loss for WWE if Saudi deal is terminated

 
 

Wall Street analyst Eric Handler of MKM Partners wrote a report carried by Deadline which suggests that if WWE were to pull out from their deal with Saudi Arabia it could put a hole in the company’s 2019 operating income by $12 million to $16 million.

The report also says that if Crown Jewel does not take place in Riyadh as expected, it would create a $2-$3 million hit to fourth-quarter cash flow. The $3 million figure is way less than what WWE got paid for the Greatest Royal Rumble event back in April which probably included an advanced payment for this show as well.

WWE failed to mention the country of Saudi Arabia on Monday or Tuesday during both Raw and Smackdown, promoting the Crown Jewel pay-per-view for November 2 with no location. “WWE has been quiet,” Handler wrote. The Raw promotional tactic “leads us to believe management is exploring the possibility of moving the event outside the country,” he added.

As things stand at the moment, Crown Jewel in Riyadh is a go despite tickets not even being on sale yet. SaudiTickets.SA is still listing a “coming soon” message when trying to purchase tickets for the show. This pay-per-view is only the second in a long, 10-year deal that WWE has with the Kingdom of Saudi Arabia.