As WWE continues to achieve record financial gains since its merger with UFC under the parent company, TKO, many employees are suffering cuts in perks, fewer promotions, and growing dissatisfaction with greater workloads.
Speaking anonymously to Wrestlenomics, numerous current WWE staff members noted a dramatic fall in morale, attributing it to lower perks, restricted wage increases, and an increasing workload as the company integrates with the UFC. This trend is worsened by a rising awareness that corporate language about appreciating the workforce is not represented in their daily experiences.
While TKO is set to report its fourth-quarter and full-year 2024 earnings on Wednesday, with an expected adjusted EBITDA between $1.22 billion and $1.24 billion and annual revenue projected between $2.67 billion and $2.75 billion, employees expressed concerns that WWE’s financial success has not translated into meaningful compensation improvements for staff.
A fundamental purpose of the merger was to centralise services under Endeavor, TKO’s majority owner, leading to severe layoffs after the agreement was concluded in September 2023. Despite WWE’s great consumer-facing results, including a new $5 billion, 10-year streaming deal with Netflix, and record-breaking live event ticket sales, internal staff indicated these triumphs have not benefited them in the form of wage hikes or promotions.
Employees remarked that the company’s stock purchase program, which allowed workers to buy WWE shares at a 15% discount, stopped with the merger, leaving staff without the option to engage in the company’s future at a lower price. Furthermore, WWE withdrew numerous significant employee perks, including the popular “WWE Superstar” peer-recognition program, stock purchase plan, and complementary live event tickets. These changes have left many employees feeling increasingly undervalued.
Morale took a further hit during performance reviews, with many employees earning only modest 3% cost-of-living raises, which they say do not keep pace with the escalating costs of living in the Connecticut/New York area. Even individuals with outstanding performance assessments were advised they would only receive a cost-of-living increase due to financial constraints connected to the merger. Several employees, who had hoped for big raises or promotions, were advised that the company was not in a position to grant these due to the financial impact of the merger.
Despite these hurdles, WWE’s financial success has maintained, with huge earnings from key events, such as the Royal Rumble, and high-profile collaborations like its relationship with Saudi Arabia and its work with MLS. The firm recently recorded its highest-ever gate for a broadcast event, with a $4.8 million income from the premiere of Raw on Netflix.
However, the cash benefit hasn’t reached most employees, as many report higher duties. Some staff are now clocking 50 to 60 hours a week, especially during the lead-up to WrestleMania, while others have seen their responsibilities extend to encompass jobs relating to the UFC, PBR, and other Endeavor assets.
Employees remain disillusioned, noting that while TKO leaders received big bonuses tied to the acquisition, the broader workforce has seen little real gains. TKO’s CEO, Ari Emanuel, received a $20 million cash bonus with stock grants, while other senior executives were awarded millions in bonuses and stock options. Meanwhile, the employees who contributed to the company’s success, particularly during less prosperous times, are not receiving similar acknowledgement.
This discrepancy between executive salaries and employee benefits is further underlined by TKO’s $2 billion stock repurchase program and its quarterly dividends to institutional investors. While these policies benefit shareholders and executives, employees are left coping with greater workloads, fewer benefits, and stagnating pay.
With the merger still happening and other acquisitions anticipated in TKO’s future, WWE employees worry they will be asked to take on even more work without greater remuneration or benefits. The strain is accentuated by the fact that WWE staff are not unionized and have limited alternatives for addressing their issues.
As morale continues to decline, several employees have voiced a reluctance to go the extra mile as they did in the past. What was once a firm driven by passion and commitment now finds itself battling with a workforce that feels increasingly undervalued.
