Vince McMahon Profiled by Forbes, WWE Profit Detailed

Forbes has run a feature piece on WWE Chairman Vince McMahon detailing how he came to be at the head of the company, what his future plans are for succession and more.

The outlet notes how WWE’s profit has been stagnant over the past few years, but there is still optimism with the stock.

“Despite the breadth of its businesses, revenues have barely budged over the last few years, hovering at around $500 million since 2008, and profits have been similarly stagnant. Excluding a one-time writedown of $11.7 million, the company made $14.5 million last year, compared with $31.4 million in 2012 and $24.8 million in 2011. Despite these flaccid fundamentals, WWE’s stock price has more than tripled in the past six months, zooming from $9.70 in September 2013 to a recent all-time high of $31.98, enough to make McMahon, who owns 52% of the thinly traded shares, a billionaire once again (he was briefly a paper billionaire in 2000).”

“The shares are flying both because WWE is seeking a new television contract, at more than twice its current rate of $160.9 million, and because of persistent speculation that McMahon, who has never articulated a clear succession plan, might sell the company outright (both Comcast and the Madison Square Garden Co. have been rumored as suitors). Another bright spot: Emerging market revenue has been growing at a 7% annual rate for a decade in countries such as India, Mexico, and even South Korea, to $116 million last year.”

The author noted that while interviewing McMahon, he noticed a dinosaur jaw on his office desk, given to him by son-in-law Paul Levesque, also known as Triple H on television.

“I look at it like it’s a really nice monster,” he says in a low, gravelly voice familiar to millions of wrestling viewers who know him as “Mr. McMahon,” the megalomaniacal lord of the ring. “When you feed the monster, the monster is happy. The problem with that is, the monster grows. And as the monster grows, then the monster wants more to eat. And as long as you do that, everything’s great. And if you don’t provide the food, then bad things start to happen.”

Much of that has been exemplified with the launch of the WWE Network, something that was experimental but has so far paid dividends.

The piece also notes his wealth, as McMahon recently cracked the billionaire status once again. But it says he is not one to flaunt it, despite his on-camera persona.

“I don’t consider myself a rich person,” he says in a rare moment of modesty. “I know that I am, but it’s not like I belong to any country clubs.” He and his wife, Linda, live in nearby Greenwich, Conn., but he doesn’t exactly treat himself to expensive toys. Years ago he owned a cigarette boat called Sexy Bitch, but McMahon’s indulgences are limited these days. “I have a car that goes very fast and a motorcycle that goes extraordinarily fast,” he says of his Bentley and a Boss Hoss 502. “I love speed.” Beyond that, he adds, “I don’t really have anything in common with anyone in Greenwich except zeros. Normally I do not like rich people.”

It also mentions his passed failed experiments and the chunk of change they cost, such as the XFL or WWF New York. But McMahon utilized those failures and made them into positives.

“I like learning from my mistakes and bringing the values I’ve learned forward,” McMahon says of his failures. “But I’m not good at patting myself on the back. I’m not good at looking back.”

Lately, WWE has been rumored to be on the selling block, and no clear direction as to who will take over once McMahon is gone has been put forth. And he’d like to keep it in the family, if possible.

“I would like to see a degree of that,” he admits. “I just think as times go on, things will evaporate. Eventually Uncle Sam sees the benefit. You can’t do anything without Uncle Sam taking a huge bite of it.”

The entire article can be found here.

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