Friday, April 22, 2011

Vince McMahon is About To Go Down In Flames

Vince McMahon is About To Go Down In Flames
by Michael Barton

Vince McMahon has just made the single biggest mistake in his life, and I am honestly shocked that he does not understand that he is about to lose everything. This is a man who is trying to fight against what has made him who he is today. It must be mental torture to know that your entire empire has been created by something so obviously despised. Professional wrestling made Vince McMahon, and, by attempting to remove the terminology "wrestling" from the vernacular, it is going to be the same thing that ultimately destroys him.

Every gamble that Vince McMahon has taken within the pro wrestling business has - for the most part - been a successful venture. He has taken a business that was a regional business for decades and turned it into a global enterprise. He has escaped from the jaws of defeat time and time again, always coming out better on the other side. I often compare him to John Gotti, the former mob boss once known as the "Teflon Don" for his ability to stay out of prison. Unfortunately, Gotti was eventually put away for the rest of his life, and while I do not see McMahon ending up in that situation, I do see a man who could possibly wind up broke and his empire crumbling right before his eyes.

Only McMahon knows why he absolutely hates pro wrestling. He cannot stand it for some reason, although it is what has made him millions upon millions of dollars. There is a psychological issue here that we will likely never understand, but it is what drives him to do everything within his power to be as far away from professional wrestling as possible. There is language that his own company is not allowed to use under any circumstance, such as "wrestler" or "pro wrestling". And while many of us who closely follow this business find it comical, it is about to reach a critical stage where we could see the business change rapidly and become completely different in a very, very short period of time.

Vince McMahon is attempting to remove the term "wrestling" in any way, shape or form possible from his company. Somewhere in his mind he thinks that by doing this, he will be able to expand into other ventures that will increase his wealth and standing in the world. If the WWE were still a privately owned company that would be one thing, but this is a risk he is taking that has serious financial consequences. McMahon is planning on stepping out into the world outside of wrestling and acquiring other business ventures. He recently told the Los Angeles Times he wants to buy "...anything that is out there. We can take on a ton of debt." If we take a brief moment to look at the past, every time McMahon has tried something outside of wrestling, he has failed miserably. The most obvious case being the XFL, the renegade football league McMahon started that only lasted one season.

The following is an excerpt from the latest Wrestling Observer Newsletter published 4/24/11 by Dave Meltzer

"McMahon’s financial failures outside of wrestling are almost as legendary as his financial successes within. Starting with the Evil Knievel snake river canyon jump, the biggest closed-circuit fiasco in history, which forced him into personal bankruptcy, failing as a music concert promoter, a boxing promoter, a movie producer the first time (Shane Productions), music companies (twice), an attempt to turn bodybuilding into a PPV entity, marketing bodybuilding supplements, a Times Square restaurant, his wife’s senate run and best known of all, a football league."

Vince is stating that he has learned from his past mistakes, and that he will only be purchasing entertainment companies. But every time he has stepped out of the wrestling business, he has failed miserably. And this time, he is putting a public company on the line, and some investors have already started to jump ship. The problem with being a publicly traded company is that, if you make the wrong move and it is big enough, you can lose everything almost overnight. The stock dividend has been overpaid for a number of years already, and it cannot last. To put it simply, the company is already paying out more than it is making, and if they suffer financial losses in taking on these new companies, the stock could easily plummet if enough stockholders get scared off by these new acquisitions. If that happens, the entire business could be ruined due to the stock falling, and Vince McMahon could be left completely broke.

Vince McMahon has never made it outside of the professional wrestling business. He has tried countless times, and he has failed each and every time he has tried, and in spectacular fashion. If this plan fails, it could mean the landscape of the professional wrestling business drastically changing once again, including Vince McMahon no longer being a part of the business that has made him who he is today.

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