WWE to proceed with Saudi ‘Crown Jewel’ event
Company cites a ‘difficult decision’ as others cancel appearances
WWE said Thursday that it would move ahead with its Nov. 2 “Crown Jewel” event in Riyadh, Saudi Arabia, despite the international furor surrounding the suspected murder earlier this month of Saudi journalist Jamal Khashoggi after his Oct. 2 visit to the Saudi consulate in Istanbul.
Many critics have questioned the event’s staging in light of the diplomatic crisis sparked by the vanishing of Khashoggi, a Washington Post columnist. Saudi officials have given varying explanations for Khashoggi’s disappearance, ranging from him allegedly being killed in a fight at the consulate to a new account that said his killing was premeditated.
“Considering the heinous crime committed at the Saudi consulate in Istanbul, the company faced a very difficult decision as it relates to its event scheduled for Nov. 2 in Riyadh,” WWE officials said in a statement Thursday.
“Similar to other U.S.-based companies who plan to continue operations in Saudi Arabia, the company has decided to uphold its contractual obligations to the (Saudi) General Sports Authority and stage the event.”
On an earnings call Thursday, WWE Co-President George Barrios said proceeding with Crown Jewel was “a difficult decision.”
Chairman and CEO Vince McMahon declined to elaborate on the decision. “We’re not going to talk a lot about that; it’s a very sensitive subject, naturally,” McMahon
said. “I think our statement said pretty much all we want to say about that today.”
Some sports-media experts have said WWE could risk damaging its reputation if it were to move ahead with the event and not show serious concern about the Khashoggi case. In the weeks since Khashoggi’s disappearance, the company’s Saudi programming has faced growing criticism on social media and from TV personalities such as HBO’s John Oliver.
A number of U.S. companies have pulled back their presence in Saudi Arabia. Several top U.S. executives, including the CEOs of BlackRock, Blackstone, JPMorgan
Chase and Uber, canceled plans to attend the Future Investment Initiative conference, which was held Tuesday through Thursday in Riyadh.
U.S. Treasury Secretary Steven Mnuchin nixed a speaking engagement at the conference, but he met separately in Riyadh with Saudi Crown Prince Mohammed bin Salman.
Crown Jewel would represent the second event in a 10-year partnership between the company and the Saudi government that was announced earlier this year.
The gathering would no longer feature Superstar Roman Reigns, who was scheduled to face fellow Superstars Braun Strowman and Brock Lesnar in a Universal Championship Triple Threat match. Reigns, a.k.a. Joseph Anoa’i, announced Monday he would be stepping away from the ring to focus on his battle with leukemia.
WWE’s previous event in Saudi Arabia was the 50-man Greatest Royal Rumble, held on April 27 in front of approximately 60,000 in the Red Sea coast city of Jeddah.
Also Thursday, WWE announced that its earnings grew in the third quarter. Revenues reached about $188 million, up 1 percent from a year ago. Profits totaled about $34 million, jumping 54 percent from a year ago. The bottom line include an income-tax benefit of about $16 million.
“We continue to effectively execute our strategy during the quarter and delivered results that exceeded our guidance,” McMahon said.
Through the first nine months of 2018, video views increased 61 percent, to 22.9 billion, and hours consumed grew 81 percent, to 842 million, across digital and social media platforms.
WWE shares closed Thursday at $75.68, down about 2 percent from their Wednesday finish.