Vince McMahon Loses $340 Million on Friday, No Longer a Billionaire

Wrestling Rumors noted earlier on Friday the WWE stock has dropped significantly over the past 48 hours due to the company failing to come through on the expectation it would double or triple its previous television package. And now, Vince McMahon is feeling the consequences.

According to Forbes, McMahon lost $340 million on Friday alone. The loss dropped him out of billionaire status, leaving his personal net worth around $760 million. Benchmark analyst Mike Hickey estimated WWE raised its television intake by about fifty percent, though not much more than that.

WWE Chief Strategy and Financial Officer warned Forbes the company never outwardly set any expectations for a new deal.

“We never commented publicly on the expectation,” said George Barrios, chief strategy and financial officer. “We said we were undervalued by the math that we had done.”

Regarding the details of the new TV deal, he also offered little.

“I don’t want to talk about the specifics of how the contracts are structured,” he said. “I think it’s pretty typical that there is some escalation in them, but we haven’t gone into detail on any of that.”

Aside from the television deal, one of the main reasons for the stock drop continues to be worries over the WWE Network. Initial figures showed WWE way short of its 1.5 million-person target in terms of subscriptions, at around 667,000. There are concerns numbers will not grow anytime soon, which could leave the stock to continue to drop.

WWE’s stock closed at $11.27 on Friday.

***Update 3:55 p.m.***

Word has come out that McMahon and Barrios will now address investors in a conference call on Monday to discuss the company’s 2014 and 2015 financial outlook at 11 a.m.

Editor’s Note:

Alert the authorities. This is astronomically bad news for WWE. People say “don’t hit the panic switch” and that it’s still early, but it proves WWE’s projections for the network and the deals were way off. A solution will be needed fast in order for WWE to turn any sort of profit over the next few financial quarters, as it was already expected to lose a lot off the launch of the network itself.

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