When the British public voted to exit the European Union last month, it led to widespread panic in the global financial markets and affected many businesses adversely, however the effect it could have on the WWE had not been explored. In an article written for the website wrestlinginc.com, noted 'Wrestlenomics' journalist Chris Harrington spelt out the implications of Brexit and it is an importnat topic since, UK remains the WWE's most lucrative market outside North America.
He stated, "The United Kingdom is WWE's largest international market and represents nearly 45% of the company's non-North American revenue. In 2015, revenue generated in the UK skyrocketed (up 87% year-over-year) to $75,653,000 compared to $40,501,000 in 2014 and $36,003,000 in 2013. The catalyst for this jump in revenue was the start of a new lucrative five-year television rights contract with BSkyB which was signed in January 2014 and went into effect in Q1 2015. "
He went on to add that a wobbling pound would not have any effect on revenues, since the deal was done in US dollars. "Contrary to comments from Needham & Company analyst Laura Martin, WWE has confirmed to WrestlingInc that the BSkyB deal was written in US Dollars and not Pound Sterling. Therefore, GBP currency devaluation should not affect the value of WWE's U.K. Television Rights deals.This is consistent with the information made publicly available from a WWE lawsuit settled earlier this year (World Wrestling Entertainment, Inc v. CTH Content Company Limited et al)." Lastly, the article went on to state that the WWE itself does not believe that Brexit would have any notable impact on their revenues, "WWE has confirmed to Wrestling Inc. they will be further addressing implications of "Brexit" at their next conference call. That call is expected to be held either in late July or early August and will cover the Q2 2016 results for WWE. When asked whether the political turmoil in the United Kingdom will have any impact on live events in the United Kingdom, the company said that it would have no impact.The largest international television rights contracts for the WWE are believed to be the United Kingdom, India and Canada. "
