Are TNA Throwing Away Money?

[Brian in Austin]

At the end of the day guys, TNA is a business. Being on tv means they have to attract advertisers willing to pay the ad spot prices during their programming, or simply put, they get cancelled. Now, the ratings would tell us that they aren't fairing well, although it's entirely possible that they are doing fine in regards to Spike programming. If that is the case, they will remain on tv.

At the end of the day they are an alternative to WWE programming, albeit on a much smaller scale.

 

[Poop Master Flex]

To be fair nobody actually knows how much money TNA makes or loses. Since TNA is not a a publicly traded company like the WWE its impossible to actually know what their finances are. We don't know how much it costs to produce a show, we don't know how much they get from Spike and their many sponsors, and mostly we don't actually know how much the big stars are getting paid. All we really know is how many people they pack in, ratings, and PPV buys and that really isn't enough to go on.

Its obvious they have wasted some money especially considering some of the big names that have come in and have done nothing for the company and all they money they spent to change the ring from 6 to 4 sides and the extra production has mostly been all for not because ratings haven't gone up. At the same time I would bet money that they probably got a lot of money from advertisers bringing in Hogan and Bischoff, since those 2 have proven track records its easier for others to invest in a company like that because of the success these 2 have brought.

To answer the question though if I was TNA I would spend money where its needed and do my best not to spend it on certain things. For example Jeff Hardy isn't worth the money he is making. The guy is a detriment to the TNA locker room and the company as a whole and frankly, they are wasting money keeping that guy around because without the WWE, HE AIN'T WORTH SHIT.

Secondly they have a lot more talent then they need and shaving it down to the guys you actually want is a good idea. I know they don't pay much for lots of their lower to mid card talent but every dollar counts.

Thirdly I would not try to expand and go travel across the country and the world for the simple fact they can't draw the crowds to financially support that. I hear so many people say TNA NEEDS TO EXPAND and that is just a stupid move. Jim Crockett Promotions did WAY better business than TNA has ever done, constantly drew crowds between 10-30 thousand people and they still went out of business because they expanded so much that they were spending more than they were making. Think about how much it costs TNA to run a show in Abu Dhabi and then think of the fact they only drew 1,000 people. It cost them WAY more to run that show then they made from it.

I know people always say they need to get out there more but if you expand and don't make any money from doing it then there is no point. Stay in Orlando for a while until you can build ratings, crowds and PPV buys. When those get to a certain point its ready to expand but at this point in time its a bad business decision.

Those are a few things I would try at first.

 

[Brian in Austin]

You're on the right track here. I used to work for a company that leveraged borrowed money for expansion against an IPO, with the idea being the IPO would help pay down the debt sooner rather than later. Bad news. They went public just before the crash of the economy, golf hadn't grown in a decade, and the IPO tanked. Oops! Fired the CEO over the debacle and they've been digging out ever since. I now work for a company with loads of cash in reserve, no borrowings, and who use careful diligence in growth. In other words, better run. I don't always agree with their methods on the ground, but you can't argue with the enormous success they've had.

I see TNA as that company I used to work for. Constantly trying to leverage future growth against current talent and the promise of success. Problem is, there is no visible success. I mean, the IWC sycophants here who love TNA will rant and rave when the ratings go up a tenth of a point, as though that is somehow a victory. It isn't. It's not even a blip on the radar. This company is poorly run and where they are now is where they'll be in the future UNLESS there is a change in business philosophy.