forbes report:
We saw the exciting display of WrestleMania 32 last night.
The details of wrestlers pay are notoriously hard to come by, and even a year ago, when we provided a
breakdown
of how WWE’s booking contracts work, we could shed very little light on
exactly how much wrestlers are paid. No longer. Over the last year
we’ve pored over court documents, SEC filings and WWE’s booking
contracts and spent hours speaking with industry sources, allowing us to
construct the first ever FORBES list of WWE’s Highest-Paid Wrestlers.
We estimate that last year the highest-paid wrestler made nearly $10
million, and the 10 top-paid stars collectively hauled in more than $30
million. That doesn’t come close to the checks cashed by the top earners
in American sports and entertainment — guys like
LeBron James and
Kobe Bryant make over $20 million a year just in salary, while
Hollywood’s top five actors were paid over $260 million combined last year — but it’s still far above what the average pro wrestler makes.
Leading that list is none other than John Cena, who we estimate made
$9.5 million. The face of the company for the last decade, Cena not only
boasts the highest base salary among weekly performers, but he’s also
unrivaled when it comes to moving merchandise. If you need proof, just
flip on any episode of Monday Night RAW and eye the rows upon rows of
neon-clad fans cheering for the face that runs the place.
And Cena’s earnings should only increase as he continues to follow
former colleague Dwayne “The Rock” Johnson from the squared circle
toward a second career in Hollywood. Last year Cena scored minor roles
in comedy films
Trainwreck,
Sisters and
Daddy’s Home. Next month he’ll start showing up on network TV as the host of
American Grit, a new Fox reality competition show that will feature contestants taking on military-themed physical challenges.
Following Cena is Brock Lesnar, who made $6 million in earnings last
year. Unlike Cena, who still mostly works a full-time schedule, Lesnar
is a rare sight in WWE programming. Last year he entered the ring fewer
than 20 times, and most of those occasions simply consisted of ominous
standing while Paul Heyman performed his magic on the microphone. But
when he
does wrestle (or
dismantle a Cadillac with an axe, for that matter), Lesnar is more entertaining than just about anyone else on the roster.
And that sort of drawing power, coupled with an unmatched
resume (NCAA wrestling champion, UFC heavyweight champion, youngest ever
WWE champion and, dare we forget, the one in 22-and-one), grants him
the leverage to negotiate tremendous deals. Back in 2003 Lesnar signed a
seven-year contract that gave him a $1 million base salary and an
increased share of merchandise sales. Over a decade later his contract
negotiations became headline news thanks to an apparent bidding war
between UFC and WWE. After the latter promotion won out, locking Lesnar
into a three-year deal last March, the “Beast Incarnate” announced the
news on SportsCenter.
Cena and Lesnar are far ahead of the other top earners — no other
wrestler made over $3 million last year. We estimate that WWE’s
10 highest-paid performers made over a combined $31 million. While
that’s nearly two-thirds of the money the company spent on its in-ring
talent last year, half went to Cena and Lesnar.
As we detailed
a year ago,
wrestler pay is essentially comprised of two key components. The first
is base salary, also referred to as a wrestler’s guarantee or downside.
Those downside values are almost entirely tied to performer tenure.
Longtime veterans receive the biggest guarantees, which have typically
been capped at $1 million, while even the most popular youngsters are
limited to the low six figures.
The second, and often more important, area is bonus pay. WWE has long
functioned on the principle that employees, whether in-ring talent or
board room executives, ought to be rewarded for demonstrated success.
Thus wrestlers receive bonus payouts for events worked, scaling from
pay-per-view main events down to a house show’s preliminary match, as
well as a share of their merchandise sales (typically 25% of profits
from licensing and 5% of direct sales, either at shows or via WWE’s
online store).
Those bonuses can be sizable even for the less active performers.
Take Triple H as an example. No. 3 on our list with $2.8 million in
earnings, Triple H has a booking contract that pays him a $1 million
base salary, and last year he made over $700,000 in bonus money despite
rarely taking a physical role in the ring (the rest of his total
earnings are
made up by executive compensation).
In other words, he added more than 70% of his downside in bonus pay.
Far more active and/or popular entertainers can do much better — we
figure the likes of Cena and Seth
Rollins made multiple times their base salaries in the form of event and merchandise bonuses.
Rollins is an ideal example of how a heavy
workload and popularity among fans can pay off. Fifth on our list with
earnings of $2.4 million,
Rollins absolutely
carried WWE last year from a storyline perspective. He performed in 11
pay-per-view events, all but once with the WWE championship on the line.
And on just three of those occasions did
Rollins fail
to take part in the main event, only getting topped by the Royal
Rumble, Lesnar vs. Undertaker at Hell in a Cell and Roman Reigns
vs. Daniel Bryan for a WrestleMania title shot. To put his eight main
events into context, consider that no other wrestler performed in more
than five last year. Perhaps most impressively,
Rollins accomplished all of that despite missing the last two months of the year with an ACL tear.
Seth Rollins was a constant main event
presence and carried the WWE championship for 220 days last year, only
dropping it after a knee injury put him out of commission. (Photo by JP
Yim/Getty Images)
And when it comes to workload
Rollins is
joined by two former teammates and fellow top-paid stars: Roman
Reigns (No. 6, $2.1 million) and Dean Ambrose (No. 10, $1.1 million). In
fact, the latter of the two did more than just about anyone last year —
by our count Ambrose worked nearly 200 events. That count includes more
than 100 house shows, a feat matched by just four other performers
(Luke Harper and The New Day trio of Big E, Kofi Kingston and Xavier
Woods).
Yet Ambrose spent little time at the top of the card. He had just
four pay-per-view main events and only one was at a major show (a
Survivor Series title match against Reigns). Consider that
Rollins worked
81 house shows and was in the main event in all but five of them.
Ambrose, by comparison, main evented just 36 of his non-televised
events. And as described in WWE’s booking contracts, a wrestler’s live
event pay is “consistent with the nature of the match in which [he]
appears,” ranging from dark matches up to main event.
As noted above, our earnings numbers are built off information
gathered from court documents, SEC filings, WWE’s booking contracts and
interviews with industry sources. We’ve only included currently active
wrestlers, which explains why you won’t find The Rock anywhere on the
list (for those who are curious, FORBES pegged his earnings at
$31.5 million for the 12 months to June 2015).
Also omitted from consideration are stock options that have not yet
vested; last year Triple H earned some $600,000 in WWE stock, but those
shares won’t fully vest until the summer of 2018.
Plenty of Internet ink has been spilled on the subject of whether
WWE’s stars are underpaid. From some perspectives that certainly seems
to be the case. We figure that last year WWE paid its in-ring talent
roughly $50 million, or just 8% of its $659 million in total revenue.
Contrast that with the NFL and NBA, which share around half of league
revenues with their athletes. Putting wrestling up against pro sports is
obviously a case of apples and oranges, particularly in the sense that
pro athletes benefit from collective bargaining while wrestlers are
independent contractors who usually don’t even have agents to negotiate
their contracts. But wrestler pay hasn’t risen nearly as much in
recent years as that for other athletes and entertainers, and that’s in
spite of WWE revenue surging, up 36% from $484 million in 2012.
The reason, according to many, is that WWE no longer has a true
competitor threatening to outbid the company for top talent. One of the
most famous such instances came in 1996 when Scott Hall and Kevin Nash
left then-WWF for rival WCW, where both performers ranked among the
promotion’s top-paid stars throughout the late 1990s; from 1997 through
2000 the duo collected a combined $9.4 million. When Bret Hart jumped
ship to WCW a year later, he received $2.5 million in base salary plus a
$6,500 bonus for any event worked beyond his limited schedule.
And when it comes to guaranteed payouts it’s hard to beat Hulk
Hogan’s 1998 contract with WCW. Though he’d been with the company since
1994 (which in turn followed a decade with WWF), he apparently had a
tremendous amount of leverage: Hogan’s 1998 deal included a $2 million
signing bonus, paid at least $675,000 per PPV event and ensured Hogan at
least 25% of ticket revenue from any weekly shows he performed at. On
top of that he received a staggering 50% cut of merchandise profits and
was even given creative control (more specifically, “approval over the
outcome of all wrestling matches in which he appears, wrestles and
performs”). According to WCW pay documents, in 1999 Hogan made $4.6
million, and that doesn’t appear to include the $4 million he was
guaranteed for working a half dozen PPV events.
Today WWE has no such spend-happy competition to contend with, and
the company has arguably taken on the vulture role. In January reports
surfaced that WWE was after some of New Japan Pro Wrestling’s top
performers. Those rumors were proved true just weeks later when veteran
AJ Styles entered the Royal Rumble, and the following month WWE
officially announced the signing of Shinsuke Nakamura, arguably NJPW’s
biggest star. Those additions came just three months after WWE brought
back Alberto Del Rio from Mexico’s AAA promotion, purportedly because
they made an offer that AAA couldn’t match.
That spending power comes via WWE’s undeniable financial success. The $1.3 billion (market cap) company
made a major gamble
on its WWE Network two years ago, moving away from the decades-old
pay-per-view model. The online-only network got off to a slow start, but
as of the end of 2015 WWE was averaging 1.2 million paid subscribers,
putting the company ahead of its projected break-even point. Last year
WWE’s media division tallied $390 million in revenue, up 33% from $292
million the year before. And other parts of the business are thriving as
well, with consumer products revenue up 26% to $98 million.
Heading into WrestleMania 32, WWE’s stock price sits at just over
$17. That’s down from the $20-plus prices of six months earlier but is
still well above the $11 floor that WWE shares hit after the
company’s stock tanked in the spring of 2014. Some analysts are touting WWE as a top growth stock pick in 2016.
As for the future, it seems WWE’s biggest concern is keeping its top
moneymakers healthy. Cena, Rollins and Randy Orton (No. 4, $2.7 million)
have all been sidelined by injuries and will likely miss their major
WrestleMania paydays. Meanwhile fan favorite Daniel Bryan was recently
forced into retirement due to medical concerns, and wrestling legend
Sting may also be at the end of his career after suffering a neck injury
that required surgery.
But fans will be no stranger to WWE chairman Vince McMahon’s supposed
“brass rings,” the keys to success that are up for grabs by any
performer willing to put in the necessary work. So while the rash
of injuries is obviously a huge blow to WWE’s creative plans, they’ve
also seemingly created opportunities for others in the company to step
into the spotlight. Should any succeed, we may very well see some new
names on next year’s list of WWE’s top earners.