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AEW signed a multi-year media rights deal with Warner Bros. Discovery last year and the lucrative deal has certainly helped AEW make huge improvements to their overall product. However, it appears Kevin Nash is questioning whether AEW is actually profitable at all.
While speaking on his Kliq This podcast, Kevin Nash was asked whether AEW is actually profitable. Nash stated that he was curious about their contracts and how much they spend. He pointed out that AEW is renting big arenas, but they’re often empty, which means they’re not making enough money to cover the costs. He said that if they keep doing this, they might end up holding shows in the Grand Canyon.
“I would love to see what their contracts are. I’d love to see what they spend because they keep running these big-ass buildings, which aren’t, you know, cheap, and then there’s nobody in them, so there’s no cost offset for running a 16,000-seat building. You get an offset there, but there’s nothing to take home after that. You know what I mean? So it’s just… I don’t know. They keep digging that hole, and the next thing you know, they’ll be running the Grand Canyon. So how are you making any profits?”
A report showed AEW’s expected revenue for 2023 was about $154 million, up from $100 million in 2024. But their expenses were estimated at $188 million, which means they’d lose $34 million before taxes and other costs.
Nash compared this to WCW’s old numbers and wasn’t surprised by the losses. He also questioned AEW’s spending on talent, wondering if the $85 million budget included travel costs and if wrestlers still had to pay for hotels. He mentioned that when he worked at Turner, he never paid for anything except food, and hoped AEW would not go backwards with their deals.
“The report I have here says AEW’s net revenue for 2023 was projected to be around $154 million, up from $100 million in 2024. However, total expenses were estimated at approximately $188 million, resulting in a loss of $34 million before interest, taxes, depreciation, and amortization.
“Those are WCW numbers… yeah, without the Turner Home Entertainment taking their 50% cut. That’s before taxes too. Good old H-Well, I’m not surprised at any of those numbers though. So, $85 million a year on talent… does that count travel? Do they pay for any of their travel, or is this still on the 1099 employees? Are hotels still on the wrestlers? When I went to Turner, I never paid for anything ever, except my food. But so now it’s covered still? Well, if they’re smart enough to… I don’t see why you would go backwards with deals.”
Nash also shared his thoughts on whether AEW Fight Forever helped them make money. Nash talked about the video game industry, specifically at Rockstar Games. He explained that once the game is made, the company makes a lot of profit, but the people who worked on it don’t always get a big cut.
In the past, there were fewer people working on a game, and they could make $75K to $100K from royalties. But now, with so many people involved, the main way they make money is through things like in-game purchases for outfits and other extras, so it’s not a great way for AEW to make a profit.
“About the video game deal, I know what it’s like. Rockstar—once you get the engine built, it’s all profit for the company, right? And they’re not going to give you a s***load. I know there are so many people now, but back in the day, there would be maybe 30 guys on the game, and you’d make bank. You’d make, you know, $75K, $100K on royalties from the game. Now, there are so many people on the game, you’re lucky if you make, you know, your money when people have to buy outfits and, you know, additional in-game purchases. So don’t know how AEW can make a profit.”
Tony Khan’s company is currently earning $3.6 million per week thanks to AEW’s deal with Warner Bros. Discovery and Khan is confident AEW will become the second most profitable company in wrestling history. Nonetheless, Tony Khan is determined to ensure that AEW sees a ton of success so we’ll have to see whether AEW will actually become profitable somewhere down the line.
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What do you think about Kevin Nash’s concerns over AEW’s profitability? Do you believe AEW’s spending habits are sustainable? Let us know in the comments below.
