Riyadh rumble sends WWE shares reeling
Rumors that wrestlers including John Cena are backing out of the Nov. 2 WWE Crown Jewel in Saudi Arabia put the network’s shares on the ropes Thursday — tumbling 2.2 percent despite the company’s earnings doubling Wall Street’s forecasts.
World Wrestling Entertainment’s stock got pummeled despite blowout earnings as the company said it was pressing ahead with its controversial “Crown Jewel” wrestling event in Saudi Arabia next month.
Reports surfaced on Thursday that WWE stars John Cena and Daniel Bryan were pulling out of “Crown Jewel” amid furor over the killing of Saudi journalist Jamal Khashoggi, allegedly at the hands of Saudi agents.
The Stamford, Conn., company, however, refused to comment directly on what looked like a widening wrestler boycott.
“Considering the heinous crime committed at the Saudi consulate in Istanbul, the company faced a very difficult decision,” WWE said.
“Similar to other US-based companies who plan to continue operations in Saudi Arabia, the company has decided to uphold its contractual obligations.”
In clipped comments during a Thursday conference call, WWE Chief Executive Vince McMahon confirmed the “Crown Jewel” throwdown was still scheduled for Nov. 2 in Riyadh, and cut off further questions about the company’s decision to proceed.
“We’re not going to talk about that — it’s a very sensitive subject, naturally,” McMahon said on the call to discuss third-quarter earnings. “I think our statement said pretty much all we want to say about that today.”
At 35 cents per share, WWE’s earnings exceeded analyst expectations by 84 percent.
Nevertheless, WWE stock fell 2.2 percent to close at $75.68 per share.
“Crown Jewel” is the second event of a 10-year partnership between WWE and the Saudis to support “Vision 2030” — the kingdom’s social and economic reform program.
The first event, “Greatest Royal Rumble,” was held in the Saudi port town of Jeddah on April 27.
The Saudis reportedly paid WWE $45 million to stage “Royal Rumble,” which drew criticism for bowing to the country’s policy of not allowing female wrestlers to perform.
Complicating matters is Linda McMahon — a former executive of WWE and the wife of its CEO — who heads up President Trump’s Small Business Administration.