As WWE cuts back on costs, reduces salaries for executives and other staff, and releases stars making too much money, the last option left to reduce expenses is to require talent to take reduced pay. One report notes this is something WWE is thinking about, but also suggests there's a reason WWE is avoiding this to date.
It has been reported that executives have taken large pay cuts as a result of the COVID-19 pandemic and that many producers who weren't furloughed saw their salaries reduced. In some cases, even WWE referees had to take a hit. The only thing left for WWE is reduce the pay given to in-ring talent, but there's a hesitation to do so.
Wrestling Observer Radio's Dave Meltzer stated that because Superstars are under contract, if WWE asks them to take a pay cut, it essentially voids their current deal. Some wrestlers obviously don't want to leave, but others have looked for ways to get out of their contract for a while. If their contract is voided because WWE tried to reduce their pay, these talents can jump to AEW.
Meltzer suggests it's a gamble WWE might not be quite ready to take, "So the talent is gonna be the last ones," he says. He adds, "Perhaps the undercard talent, I mean they may offer people who they don’t think will go, or they don’t think will be interest, or they don’t care if they go."
Meltzer adds that he doesn't think WWE will breach those contracts and give talent a free pass with, especially since that free pass will also likely wipe out any non-compete clause. He also notes that the belief is wrestlers have some form of pay protection even if they aren't unionized.
WWE Still Looking to Cut Costs
What's interesting about all of this is that Meltzer notes WWE will still be quite profitable, even if they don't reduce salaries or release anyone else. Their new television contracts, plus guaranteed money coming in from Saudi Arabia make it so that WWE doesn't have to be worried.
Of course, there's also news that WWE is potentially bringing back stars like Kurt Angle and they just recently re-signed Ric Flair and Drew Gulak. Obviously, when they want to, they'll spend some money.