CM Punk quits WWE

There has been alot of discussion as reports suggests that former WWE champion, CM Punk quit the company prior to Raw and he told Vince McMahon he was going home. Punk didn't appear on Raw and was subsequently removed from live events that he was previously advertised. As with almost anything in pro wrestling, you have to consider, is it a work? It's possible that the "walk out" could be an angle to set up the rumored CM Punk vs. Triple H match at Wrestlemania, but considering that Punk almost left the promotion three years ago, I doubt they would try to use the same situation again for a storyline because it wouldn't generate the same type of buzz after he returned. So, if it's not a storyline, why would Punk quit just six months before his contract is set to expire?

Last week, there was an MMA Fighting interview where Punk mentioned that he didn't know if he would resign when his current deal expires and he also said that one of his remaining goals is to main event Wrestlemania. One of the possible scenarios is that Punk decided to quit after the Royal Rumble because Batista won it and as a result, Punk wouldn't be in the main event of Wrestlemania. If Punk wasn't going to resign, Wrestlemania 30 would have been his opportunity to headline the show before he retired and if he wasn't booked for his remaining goal then maybe he didn't think another six months on the road was worth it. Punk might have a reason to quit, as he has been a work horse during his time in WWE and he has worked injured in recent months, but a returning former star that will promote a movie is booked in a title match at the biggest show of the year. This is really similar situation to when The Rock sporadically returned to the WWE and it was one of the reasons for the infamous "pipe bomb" promo from a few years ago. After the promo, Punk said he wanted to change the WWE and it seems like he tried, but three years later, it's basically the same situation, as a former star was automatically given a top spot. Punk's attempt to better the sport is notable, but if recent events prove anything, it's that the WWE will book their product based on seemingly trying to tell the fans what they should want to see and unless there's competition for them or the fans don't watch Raw, the WWE will probably continue to book similar storylines.

The other aspect of this situation is if Punk wasn't going to resign later this year, why would the WWE book him in the top spot of the biggest show of the year? If Punk wasn't going to resign then from a business prospective, why would the WWE want to promote him in a top spot when they could invest the TV time for another star that will still be under contract after Punk left the company? Also, if Punk wasn't going to resign, it wouldn't be too surprising if he was booked to job to Triple H at Wrestlemania, considering that he was jobbing at almost every PPV prior to him almost leaving the company a few years ago.

If Punk actually quit, you can't really blame him, as he has been injured and if a Wrestlemania main event was his only goal before retiring, there's no reason to risk further injury. At the same time, the WWE has the right to book their product how they want and if it continues to draw money, why not? However, it's certainly a statement about the company when one of the top performers would rather quit and decline a major pay check for Wrestlemania than work for the company for another six months. There were some fans on Twitter that mentioned TNA or ROH as options for Punk after his WWE contract expires, but I think Punk will retire. Punk made major money in the WWE and there's really no reason for him to wrestle for a different promotion. TNA is bush league and ROH probably couldn't afford to sign Punk so it's possible he will retire after the WWE contract expires. Regardless, Punk had a good run in the WWE and he provided the audience with some good TV during the past few years. It should be extremely interesting to see if the WWE acknowledges Punk's decision on TV and if it will be used for a storyline.

The Wolves debut on Impact

Last week on Impact, former Ring Of Honor champions, Davey Richards and Eddie Edwards debuted for TNA during a backstage segment with Dixie Carter. There has been much speculation about the duo for the past few months after they did a few tryout matches for the WWE at an NXT taping, but they weren't signed to deals and continued to make appearances on the independent scene so it was somewhat surprising that they would show up on Impact. It's somewhat ironic that two former ROH champions debut for the company just a week after AJ Styles' seemingly last match for the promotion aired on TV and he's already wrestling for ROH, but that's another column for another time.

As for the Wolves, the signing itself is good for the company, as Davey and Edwards are two of the top talents on the independent circuit, but considering all the turmoil that currently surrounds TNA and their track record for minimizing independent talent they've signed previously, it seems doubtful that the Wolves will be a major team in the company. If anything, I wouldn't be surprised if Richards eventually quits the promotion after they fumble booking the team, which is something he has a history of doing in ROH. Davey also tends to be outspoken at times when perhaps he shouldn't be, which is what led to his most recent dismissal from ROH. Basically, as rocky of a road as ROH has been in recent years, TNA isn't exactly stable either so I don't know if TNA will be an upgrade for Davey, aside from potentially more money, but that really depends on the contract structure. However, the contract the Wolves signed probably isn't for major money, simply because of the amount of wrestlers TNA has recently released to cut the budget. So if it's not for just money, why would the Wolves sign with TNA?

Richards and Edwards are the only ones that know the answer, but if I had to guess, I think they Wolves decided to sign with TNA specifically because they weren't signed to WWE contracts. Davey was dismissed from ROH and if WWE isn't an option, where is he going to work? Sure, Richards can probably make decent money on the independent scene, but someone with his skills should be on a major stage and TNA could at least guarantee a certain amount of money for a contract and exposure on national TV, which is something that smaller promotions don't offer. For Davey, unless he wants to return to Japan, which is slightly rebounding after years of decline, TNA is his only option for main stream exposure in the United States. He mentioned during interviews that he has other goals besides wrestling, which makes sense, but with other career options on the table, will Davey retire after a TNA run?

Despite not being signed a few months ago, I think Eddie Edwards still has the potential to eventually sign a WWE developmental deal. Edwards is the more well rounded wrestler and his style might be more adaptable to the WWE. The reasoning for Edwards to sign with TNA is probably similar to Richards, if he wasn't going to sign with the WWE then TNA offers the most exposure instead of the independent scene. Dixie Carter and the Wolves on the same show probably had the smart marks heading for a bridge, but wrestling on national TV for some type of guaranteed money is a better option than wrestling for a crowd of a few hundred fans on the independent scene.

The WWE Network

After several months of speculation, the WWE announced the launch of the WWE network, which will feature a 24/7 schedule and on demand events streaming online. Basically, the entire video library will be accessible to subscribers for $9.99 a month when purchased as a six month package, including pay-per-view events. Obviously, the WWE is using the emerging technology of online streaming to attempt to advance distribution and in the process offer more content at a cheaper price. Sounds great, right? As with anything in wrestling, time will tell, but there's a lot of potential for this new business venture.

The major plus for anyone that subscribes to the WWE network is that it will include PPV events, which cost $45 using traditional distributors. The video library access is a perk, but the current PPVs offered are the major selling point because without the PPVs being offered, the WWE network would be a streaming version of WWE 24/7 On Demand that was available on different distributors for a few years. Reportedly, the WWE 24/7 service had around 100,000 subscribers and was deemed profitable, but not necessarily a major success.

As mentioned, the PPVs being offered at such a cheap price is the major selling point of the network, but it could also be the major risk of it. Various news outlets have reported that the WWE has spent $40 million dollars on the network and it would need 1-2 million subscribes to cover the cost of the launch of the network. The cable companies that offer WWE PPVs get a percentage of the buy rates so doing things more "in house" so to speak would allow the WWE to make more of a percentage of the network sales, but they are using the same company that streams MLB so there's probably a percentage deal for them as well. The bottom line is for the WWE network to be a success, there would need more people to subscribe and get access to PPVs at a lower price than the buy rates that they get for people that order PPVs for $45 dollars. Basically, they will need enough subscribers to cover the traditional revenue lost if people subscribe to the network. Obviously, there has to be more of the WWE audience that will pay for the network than order the PPVs. If the projected 1-2 million subscribers is correct for the WWE network to become profitable, the WWE would need 30-40% of the weekly TV audience to pay for the network, which is significantly more of the audience than those that by traditional PPVs. It's more than possible, but there's certainly risk involved when launching a new business model, considering that traditional PPVs have generated millions for the company.

Some fans might be in the "wrestling bubble" and not realize that a major portion of the WWE audience are causal fans with a variety of entertainment options so just because they watch Raw, it doesn't necessarily translate to them paying to watch a 24/7 wrestling network. If 24/7 accessibility to wrestling was a major draw, the On Demand service would've had more subscribers. The other major draw back is that the WWE could indirectly cost themselves money because with the amount on content that is being advertised for the network, will it effect potential DVD sales?

As was mentioned earlier, the WWE network is a cheaper option for PPVs than the cable companies, which isn't exactly good news for them, as the WWE generates major PPV money. Dish network released a statement that implies they might drop WWE PPVs, but it's a bluff. WWE is a proven brand and it will probably still be profitable for them.

The question here is, why would the WWE risk traditional PPV and potentially sabotage one of their most profitable revenue streams? Anyone that tries to tell you that the pay-per-view business is declining is incorrect, as UFC 168 did an estimated 1 million PPV buy rate. If you have a product people want to watch, they will pay to watch it, but the WWE has had some sub par PPVs the past few months, which is why there were lower buy rates. Will the more affordable price translate to more subscribers? A cheaper price makes it an easier sell, but there's no guarantee that fans will pay to watch it if there's lackluster PPVs. As for the potential of the network, I think that initially, the WWE will get the subscribers they project to cover the cost of the launch because the subscription includes Wrestlemania, but the success of the network will be if the fans renew the subscriptions  after Wrestlemania. There's business risk, but there's potential for major money and it will be extremely interesting to see how many people pay for the network.

Batista and Lesnar return

 This past week on Raw, Brock Lesnar returned to the WWE and seemed to be set to start a major angle for Wrestlemania in a few months. First, let's address the recent rumors of Lesnar's potential return to the UFC, which caused much speculation online that he would meet with UFC President, Dana White after the UFC 168 pay-per-view. It amazes me how often this subject continues to get press online and it's even more amazing that some people actually put stock into the reports about it. No, Brock Lesnar isn't going to return to the UFC, as he's under contract to the WWE and signed a two year deal after Wrestlemania last year, which prevents him from signing with another company during the duration of the contact. However, as I mentioned in a previous column, even if Lesnar wasn't under contract to the WWE, he would not return to the UFC because there's major money and easier money to be made in sport entertainment. Lesnar will make a handful of appearances for WWE this year, get a pay check, and make easier money with an easier schedule in sports entertainment than mixed martial arts. Don't get me wrong, the UFC is a very successful, global brand, but as far as Lesnar goes, he did what he could there and if he returned, it seems extremely doubtful he would be successful for a variety of reasons.

As for the Raw appearance, the WWE continues to book Lesnar very wisely, as they reestablished him as a monster right from the start with the attack on Mark Henry and the promo seemed to give some indication of potential storylines for Lesnar leading into Wrestlemania. Despite Lesnar mentioning the WWE World Heavyweight title, I doubt Lesnar will be in the main event picture, but it depends on how many appearances he's signed for and how many of those appearances the WWE is willing to use for this particular storyline. If Lesnar would actually win the title at some point, he would probably appear on Raw on a weekly basis, which is something that he hasn't done since he returned to the company a few years ago. The other aspect of the Lesnar situation is that he doesn't really need to be in the title picture to boost the ratings or the buy rates. Lesnar's name vaule is enough to sell a show so that along with the limited appearances he's signed for, he probably won't be in the main event scene prior to Wrestlemania.

It was also announced that Batista will return to the WWE in a few weeks and there are rumors he could win the Royal Rumble to set up a main event match with Randy Orton at Wrestlemania. Before the discussion of Batista's return, it should be noted that he did the best work of his career with the heel run prior to his departure from the company. The heel turn and the subsequent program with Rey Mysterio, who can make people look good in the ring, gave Batista's character substance, instead of the generic presentation from previous years. Batista taking time off for a few years will generate buzz for his return and while an angle with Orton is possible at some point, I doubt it will be a match at Wrestlemania. While Batista had his best run from a character stand point, his work is somewhat limited and it's doubtful a Batista/Orton main event could live up to the hype of Wrestlemania. That's not to discount Batista because his name value will draw for the WWE, but the fans that are assuming that he will automatically win the Rumble might be putting too many stock into online reports before Batista actually returns to the company.