Top Calls: WWE Falls as Saudi Deal Threatens Costs

The transcript discusses WWE's potential to thrive due to its strong intellectual property and the growth of digital media. It compares Saudi investments in sports, highlighting differences between their involvement in PFL and golf. The role of Saudi Arabia in WWE and UFC is explored, noting past investments and current dynamics. Finally, the impact of economic conditions on entertainment spending is analyzed, with WWE seen as relatively recession-resistant due to its media rights deals.

What is one reason WWE is expected to thrive in the entertainment industry?

• It relies heavily on merchandise sales.

• It focuses on local events only.

• It has a large number of physical venues.

• It has strong intellectual property and media leverage.

How does the Saudi investment in PFL differ from their involvement in golf?

• They have no financial interest in PFL.

• They own more than 51% of PFL.

• They have a non-controlling stake in PFL.

• They have full control over PFL's strategy.

What could happen if the Saudis gain more than 51% control of WWE and UFC?

• They would stop investing in sports.

• They might focus on short-term profits.

• They would likely sell their stake.

• They could treat it as a platform investment.

What was one of the reasons Ari Emanuel returned Saudi investment capital?

• To expand into new markets.

• To increase control over WWE.

• Due to the Jamal Khashoggi incident.

• To focus on local investors.

Why is WWE considered a non-cyclical business in public markets?

• It has a large number of employees.

• Its media rights deals are not cyclical.

• It relies on seasonal events.

• Its revenues are primarily from merchandise.