WWE was tasked with cutting millions from its payroll last month, and the way those cuts were handled has caused a lot of disappointment in the wrestling industry.
Fightful Select has published a comprehensive report detailing the scope of the financial cuts, the pressure on talent to make quick decisions, and the broader implications for how wrestlers will approach contract negotiations with TKO going forward.
The cuts were met with immediate criticism from within the industry, primarily because of the timing. The TKO executive pay package was made public around the same time as the release and pay cut requests were made public, with the stock reaching record highs. As noted by Fightful Select, most of the talent and agent world accept that releases under TKO are a reality under WWE's direction, but talents being asked to take seven-figure pay cuts per year, while executives received substantial compensation packages, was widely criticized and ridiculed.
Kofi Kingston and Xavier Woods – better known as The New Day – were among the talents who were contacted about taking pay cuts on the day of the massive release. Both were given two days to decide and they immediately decided that they would rather leave the company than accept the lower offer. Despite the decline, both walked away with millions of dollars remaining on their deals over the next four years.
Fightful Select also noted that several talents were approached with new contract offers during overseas dates in recent years, sometimes well before negotiations were expected. Some within the industry saw this as an attempt to get talent signed before their representatives could properly review the terms, although this was portrayed as an opinion rather than a confirmed strategy.
The report references Killer Kross as an isolated example of compressed decision timelines, with Kross claiming he was given just one day to decide on his contract offer last year.
Concerns about industry reaction and future negotiations
The broader fallout from this round of cuts is already dictating how talent and their representatives view future deals with TKO. Fightful Select reports that there is now little confidence within the talent and agent communities that wrestlers signing big, life-changing contracts will actually play their full course. The concern is that WWE may continue to approach talent mid-contract with lower offers, weakening the protections those deals provide.
Related frustrations cited in the report center on timing and competitive strategy. Santos Escobar and others signed new deals with WWE last year without involving AEW or other companies, and now they find themselves facing pay cuts with little or no leverage. Several representatives pointed out that cutting those talents also reduces WWE's competitive advantage, as forcing AEW to spend more money on the same performers would have been a stronger strategic play.
In regards to The New Day, Fightful Select reported that several names within AEW have been pushing internally for the tag team to sign. The report also shot down rumors that Woods could return to WWE on a digital-only deal, noting that such an arrangement would prevent him from working for AEW and effectively cost him millions in the coming years.
A WWE source was also quoted by another outlet, expressing disappointment that the company did not publicly acknowledge The New Day's contributions upon their departure. A separate WWE source told Fightful Select that the company privately expressed its appreciation and that a joint statement announcing the departures was expected, but no explanation was given as to why it never materialized.
