How Does WWE Do Business? (Kayfabe)

[Okay Fabian]

In a recent assignment for an MBA class, I presented a comprehensive organizational analysis on WWE, Inc. (the publicly-traded, privately-controlled entertainment company). In the process, I became fascinated with the distinction between WWE, Inc. (the aforementioned corporation) and “WWE” (the fictional entity). I am especially interested in the real-world consequences (i.e. stock prices) of storylines decisions (Vince McMahon demotion / Triple H promotion).

Having done the research, it’s safe to say that I have a pretty good knowledge of how WWE, Inc. operates, but I am a bit unsure about how “WWE” works. There are a number of contributing factors leading to my confusion: storylines inconsistencies, lack of continuity, “wrestling logic”, worked shoot promos, and WWE Inc’s reluctance to recognize its competitors, to name a few.

In recent weeks there have been several threads about the increased emphasis on reality in the WWE. Some about rematch clauses, others about worked shoots, others about Christian’s lawyers, and others about announcers making mention of how much money wrestlers make when they win or lose matches.

So, with all of that background, here’s my question:

1. If you were assigned to present a comprehensive organizational analysis on “WWE” (the on-screen organization) what kind of picture would you paint?

Here are a couple topics of interest:

- Who is in charge?
- Who books the matches?
- Where do new superstars come from?
- Where do “future endeavored” superstars go?
- How does a WWE superstar ascend the ranks?
- How do WWE Superstars make their money?
- Why are blatant attacks outside the ring and after matches permitted?
- Should contract negotiations be aired on TV? (i.e. NFL & NBA collective bargaining processes)
- Should all WWE Champions get rematch clauses if they should lose?
- Can there be an increase in reality while still maintaining kayfabe?
- How does “WWE” compare with UFC, NFL, MLB, NHL, etc?

I am asking all of these questions strictly in kayfabe. To be clear, specify in your responses whether you are referring to WWE, Inc. or “WWE”

 

[PunkNation26]

Well, I can't answer all of those questions, but I can say that Vince McMahon is still the Chairman of the Board of both WWE Inc. and "WWE". Also Vince books matches, and has the final decisions on who's hired and fired. WWE Inc. most of the time signs guys to developmental deals, and then brings them up to the main roster.

I don't know for sure how guys ascend the ranks, but I'd like to believe it's based on how much of a crowd reaction a guy gets, as Triple H claims. However, it's obvious from Zack Ryder's lack of on screen success that this isn't the case. I'd say, as it's always been, that ascending the ranks requires some brown nosing, and some sort of political leverage.

 

[Straightedge Jericoholic]

Who is in charge?
Who books the matches?

As answered by PunkNation26, Vince is incharge of both WWE Inc. and "WWE" as mentioned by CM Punk at Summerslam. He is the chairman of the board.
Although not all matches are booked by him but Main Event and Semi-Main Event only.

Where do new superstars come from?

The superstars are scouted by WWE scouts usually from the indy circuit and are given dark matches at the start of Raw, Smackdown, NXT, Superstars whatever. If they impress they get a chance to be WWE Superstars. I believe if some people remember how Evan Bourne debuted then you might understand this. He was wrestling as a local competitor by the name Matt Sydal in his first match against Shelton Benjamin. But the next week he was signed by WWE aand renamed Evan Bourne. This answer was specified for WWE Inc. only. I can't say anything for the "WWE" though.

Where do “future endeavored” superstars go?

Kayfabe wise the crowd is made to believe that he is probably working at a land mine or something else.They might come back a couple of years later and become a crowd favourite as seen for many returning superstars. We all know what happens in reality though. Cough cough.... TNA......Cough Cough.

How does a WWE superstar ascend the ranks?

For a face it's usually the long road with him wrestling every bit of crap in the company. He gradually improves and with that comes the crowd reactions. The crowd starts to get behing him. He usually starts feuding for the US or IC title. Seldomly gets a match or two in the main event teaming with main eventer(s) against a couple or more heel superstars. Keeps getting over. From here it's usually two-three paths-One is when a guy win a multi-man title match like fatal four way. This usually gets you over pretty fast. Second is the MITB/RR route. You win the money in the bank or royal rumble. Get a title match. Win it. However it has flaws as the guy doesn't seem credible enough to win the title or even challenge for that matter. We saw that in Punk's first WHC run. The Third is the Jericho way-Defeating the champion in a non-title match which might be seen as an upset. The guy gets one or two matches for the title. Shows that he is credible. Finally wins the title at a big stage. As for the heel he usually goes up the ranks through a manager(vickie guerrero) or the miz way. That guy was literally hated. But he kept climbing up the ladder. It was almost a face like climb through the ranks.

Why are blatant attacks outside the ring and after matches permitted?

It advances the storyline, gives you crediblity. Think what would have happened if Jericho had not attacked HBK during their feud in '08. Same with Del Rio. He attacks Cena. He gains credibilty.

Should all WWE Champions get rematch clauses if they should lose?

Plain NO. If that should happen the feud will last a lifetime.
For example-1st PPV-A beats B. B gets him rematch at the 2nd PPV. He beats A. A gets his rematch at 3rd PPV. He beats B. B gets his rematch at 4th PPV and so on. I would die of boredom.

Can there be an increase in reality while still maintaining kayfabe?

Yes. Punk is doing that right now(excluding the Phil Brooks and Paul Levesque talk).

How does “WWE” compare with UFC, NFL, MLB, NHL, etc?

Casual fans or Hardcore Combat Sports fans see WWE as oh that soap opera which in my view is absolutely false. The match should tell a story. That is what gets the fans behind. Not two men going against each other for absolutely no reason. If you want to see that better see a cock fight or something like that. As for MLB or NBA. You just can't compare them to WWE. WWE will never surprass the popularity of Baseball or Basketball in America. It is simply not expected from WWE. But they can become mainstream if they work on their storylines. That is the very same reason people watch UFC more that WWE.

 

[gurvinder372]

Good Question:
These were the first question which came to my mind when the news of WWE being scripted was broken to me

Who is in charge?
Ans: This organization is run by CEO directly.

Who books the matches?
Ans: This organization is divided into two competitions: RAW and Smackdown. Each of these competitions have their own manager whose responsibility is to find out the best man in the rooster, so he book matches. Also, since this is a contact sport, sometime there is a bitterness among the wrestlers, to settle that also, manager book matches. Wrestlers can also go to the manager to request a match to settle scores.

Where do new superstars come from?
Ans: WWE schedule interviews which has a specific requirement. They conduct interviews, mockup matches, and finally a tournament to pick the best people of the lot.

Where do “future endeavored” superstars go?
Ans: what does “future endeavored” means?

How does a WWE superstar ascend the ranks?
Ans: Usually by getting more wins under their belt. Winning the matches gives them more credibility and it impresses the manager and other higher authorities

How do WWE Superstars make their money?
Ans: Since this is a competition but also a show for the crowd to be entertained, so superstars get money for each match, something like match fee. If they win more, their fee gets increased. If they have won the championships, they get more money till the time they keep it (explaining why heels want to win championships)

Why are blatant attacks outside the ring and after matches permitted?
Ans: They are not permitted, they just take everyone by off-guard and surprise, so no one is prepared for them. If the attackers are more in number, then even security cannot do anything about it.

Should contract negotiations be aired on TV? (i.e. NFL & NBA collective bargaining processes)
Ans: Managers and higher authorities do not want to discuss these matters on TV, since they don't want to waste any time, and give more wrestling to people. But sometimes a shrewed manager wants to humiliate/prove a point to the superstar. So, they show the same live on TV. Also, just to keep things transparent, they show the contract signings

Should all WWE Champions get rematch clauses if they should lose?
Ans: Yes, in all fairness, even a court gives you a chance to appeal further. So, just to keep fairness spirit, they give another chance to former champion, regardless of whether he won cleanly or not.

Can there be an increase in reality while still maintaining kayfabe?
Ans: Yes, but quality is already good. But the drama should be spontaneous and random, and shouldn't look forced.

How does “WWE” compare with UFC, NFL, MLB, NHL, etc?
Ans: WWE has a ambitious chairman. He wants to be in the spot light all the time. He wants more and more money all the time. But he also has a eye for the talent and quality. On this front, WWE is comparable to others.

 

[TWJC: The Beginning]

In a recent assignment for an MBA class, I presented a comprehensive organizational analysis on WWE, Inc. (the publicly-traded, privately-controlled entertainment company). In the process, I became fascinated with the distinction between WWE, Inc. (the aforementioned corporation) and “WWE” (the fictional entity). I am especially interested in the real-world consequences (i.e. stock prices) of storylines decisions (Vince McMahon demotion / Triple H promotion).

Having done the research, it’s safe to say that I have a pretty good knowledge of how WWE, Inc. operates, but I am a bit unsure about how “WWE” works. There are a number of contributing factors leading to my confusion: storylines inconsistencies, lack of continuity, “wrestling logic”, worked shoot promos, and WWE Inc’s reluctance to recognize its competitors, to name a few.

In recent weeks there have been several threads about the increased emphasis on reality in the WWE. Some about rematch clauses, others about worked shoots, others about Christian’s lawyers, and others about announcers making mention of how much money wrestlers make when they win or lose matches.

So, with all of that background, here’s my question:

1. If you were assigned to present a comprehensive organizational analysis on “WWE” (the on-screen organization) what kind of picture would you paint?

Here are a couple topics of interest:

- Who is in charge?
- Who books the matches?
- Where do new superstars come from?
- Where do “future endeavored” superstars go?
- How does a WWE superstar ascend the ranks?
- How do WWE Superstars make their money?
- Why are blatant attacks outside the ring and after matches permitted?
- Should contract negotiations be aired on TV? (i.e. NFL & NBA collective bargaining processes)
- Should all WWE Champions get rematch clauses if they should lose?
- Can there be an increase in reality while still maintaining kayfabe?
- How does “WWE” compare with UFC, NFL, MLB, NHL, etc?

I am asking all of these questions strictly in kayfabe. To be clear, specify in your responses whether you are referring to WWE, Inc. or “WWE”

This is really fun. I always feel like it's more fun to pretend everything is kayfabe. Like Cody Rhodes has Evan Bourne complete his art project for his 5th hour class by cutting out his masks, because to me, Bourne is a child and Rhodes is in control. Kayfabe is way more fun than "real life".

Who is in charge? Triple H is officially in charge, but really, there are a lot of shadowy figures that we don't know about who push things.

Who books the matches? It's wild west. Wrestlers are constantly about to get in fights backstage and Teddy Long has guys who watch this and run things through him, which he runs through HHH. In some instances, like on Raw, Long can just make a match if it's really obvious and the "near-fight" happened on TV.

New superstars are often extremely lucky fans and/or friends of people in the business. Either that or they're enigmatic figures that WWE officials found in remote islands that are huge human beings that they bring in to beat up people.

"future endeavored" stars go back to their remote island and train. or they go back to their hometown and train and watch Raw every week and get pissed about what happens.

A superstar ascends the rankings by winning or by making friends with higher up people.

WWE stars make money on a strict win/loss basis. Championship matches make them more money, PPV matches make them more money. There's an equation. X amount for a win, Y amount for a loss. You can multiply it by a percent for the others. Z for a PPV match, ZZ for a "big four" ppv match, ZZZ for a wrestlemania match. I for an IC title match, W for a world title match, WWE for a WWE title match, U for a US title match, etc. Also, multiply it by "M" for a main event match. The most a wrestler can make in one match is winning the main event at mania "ZZZ times WWE times M times X". Which is typically around a million dollars.

Blatant attacks and disregard for anything that breaks laws are permitted because they sign a contract that says they won't sue anyone. Only that most sneaky of wrestlers can get around it. Also, WWE has a strong policy for hiring officials with learning disabilities, it's why referees and the like are constantly being duped by the same heel tactics.

Contract negotiations are only shown on TV if it's a big superstar. In fact, sometimes having future contract negotiations on Tv are in prior contracts of wrestlers.

Yes they should get a rematch clause, winning the title proves that you're that good so it's just a perk of winning the title.

Of course there can be an increase in reality while still maintaining kayfabe. Nolan's Batman is pretty damn fantasy-driven. Most of the shit isn't actually realistic, but because they take the time to make it seem that way, people buy it more.

WWE doesn't really compare with the others. WWE is more like Paramount or Disney. You advertise for events that are essentially advertisements for other things. You watch Raw to build up to a PPV that brings up questions for the next weeks Raw. That's not different than the Disney channel advertising Disneyland which advertises a movie which turns into a TV series on the disney channel. It's a highly complex (despite my simplification), genius business model.

 

[Okay Fabian]

Some more interesting questions

- Why do wrestlers (superstars) change their name?
- Why do wrestlers not always fight in their own weight category?
- Why does Chairman of the company not firing/release the wrestler if he wants to? Since he doesn't have to do in the ring always?
- Why is Undertaker/Kane interested in a materialistic thing like a championship?

Great questions!

Why do wrestlers (superstars) change their names?

This is a tricky one to answer in kayfabe. I know in the real world, WWE, Inc. likes to own trademarks on all their names, thus Joe Hennig becomes Michael McGillicutty. This was a big issue during the CM Punk signings. WWE, Inc. wanted him to sign over the rights to his stage name.

In kayfabe, I guess wrestlers might change their name to protect their loved ones. The wrestlers make enemies (both in the ring and in The Universe) and so they assume a stage name when they enter the WWE. But this doesn't address the fact that someone like Nick Nemeth goes from Kerwin White's caddy, to Nicky from the Spirit Squad, to Dolph Ziggler. Because, clearly the guys in the back know it's the same guy even if a portion of the audience doesn't remember past gimmicks. Gimmicks and name changes in the kayfabe world might just be ways to psych opponents out and make yourself more marketable for movies/TV shows, etc.

Why do wrestlers not always fight in their weight category?

There are no weight categories. In the world of "WWE", weight is less important than skill. Sure, in the real world, Mark Henry has a huge advantage, but in "WWE" smaller wrestlers are able to pick out his weaknesses and take advantage of his mistakes. I would love to see "WWE" bring more of a sense of realism to the competition by installing weight divisions. I think having a WWE Super-Heavyweight, WWE Heavyweight, WWE Middleweight, and WWE Lightweight champions would make much more sense than the geographical-based World Heavyweight Champion, United States Champion, and Intercontinental Champion. Because the geography stuff never really comes into play. It's just a name. You could have special weight class cross-over matches just as Special Attractions that would have no effect on the wrestler's "standing" in their own weight division. Because as far as WWE, Inc. is concerned, nobody wants to watch only Primo vs. Sin Cara and Mark Henry vs. Ezekiel Jackson type matches. Variety is the spice of life. But I think in a kayfabe world, WWE could install weight divisions but still justify a Lightweight vs. a Super Heavyweight in realistic sporting terms.

Why does Chairman of the company not firing/release the wrestler if he wants to?

Maybe because of contract stipulations? Maybe because "the Chairman" knows that firing/releasing/future endeavoring the wrestler would be bad for business. That was the whole conflict in the power struggle between Mr. McMahon and Stone Cold Steve Austin. They hated each other, but they knew in some way that they had to co-exist because it was mutually beneficial. McMahon knew Austin was a top draw and Austin knew WWE was "the best wrestling company in the world."

Why is Undertaker/Kane interested in a materialistic thing like a championship?

You got me here. Undertaker and Kane, the phenom and the devil's favorite demon, should really have no interest in a world title. For The Undertaker, he should also really have no interest in his Wrestlemania streak. Sticking to character, they should simply be about taking souls and causing mayhem, respectively. The Undertaker and Kane are relics of a non-realistic gimmick-based WWF. Once they are gone, there really won't be any major competitors in WWE who have an over-the-top gimmick. Wrestlers will all be pretty realistic with simple characters and normal names. That doesn't mean in "WWE" the wrestlers can't still have over-the-top gimmicks, the superstars and announcers will just have to nod to the fact that the wrestlers are adopting these personas to psych out their opponents and make them more marketable with regard to out-of-the-ring endeavors (movies, TV, merchandise).

 

[CleverName51]

- Who is in charge?
WWE INC: the actual corporate public structure, so the McMahon family, mainly VKM.

WWE: that's HHH right now as the board of directors removed Vince and made Trips COO


- Who books the matches?
WWE INC: The Booker/creative

WWE: the GMs, COO, and now recently, Executive VP of Talent Relations John Lauranitis


- Where do new superstars come from?
WWE INC: scouts recruit and sign, they go through developmental (FCW) and join the main roster

WWE: GM's have scouts and they negotitate with Superstars, remember MVP and I believe Scott Steiner ran this story


- Where do “future endeavored” superstars go?
WWE INC: TNA/ROH/Japan/Indies/Rehab

WWE: They're just never mentioned, but logic dictates they've been fired

- How does a WWE superstar ascend the ranks?
WWE INC: getting crowd reactions, merch sales, having someone higher up like you

WWE: winning matches, making statements (verbal promos or beating down others), winning tournaments (MiTB, Royal Rumble, King of the Ring)

- How do WWE Superstars make their money?
WWE & WWE INC: they have a contract based on appearances, match, place on card, the one difference is WWE implies champions and winners make more money, WWE INC does not


- Why are blatant attacks outside the ring and after matches permitted?
WWE INC: its scripted violence, like why are murders permitted on Law and Order

WWE: It's like fighting in hockey, or throwing at someone baseball, sure it's not explicitly part of the rules, but it's "allowed" in the sense that the penalty is so minimal. I've always just assumed it's a small fine paid off camera. Though at times we've seen GM's suspend some superstars

- Should contract negotiations be aired on TV? (i.e. NFL & NBA collective bargaining processes)
WWE INC: no, puts too much undue pressure on both sides.

WWE: sure, it could be an interesting storyline

- Should all WWE Champions get rematch clauses if they should lose?
WWE INC: yes, easy way to keep top stars in the main event when they lose the title without having to come up with longer convoluted ways of doing it

WWE: sort of, but winning the "rematch" shouldn't count. For example: at the June PPV challenger Wade Barrett defeats champion Randy Orton to become WHC. at the July PPV Orton cashes in his rematch. Orton wins the title back. For Barrett there is no rematch. Unless the GM determines something wrong went down, in which case he can book a third blow off match in August of the "Major Stipulation" variety (cage, street fight, cell, ladder etc...)

- Can there be an increase in reality while still maintaining kayfabe?

Sure, we've seen it with Punk recently, Cena too when he does his "I do this for kids" routine

- How does “WWE” compare with UFC, NFL, MLB, NHL, etc?

It doesn't, WWE is a scripted, the others on your list are not.

 

[Hulk Hogan's Brother]

All answers are in kayfabe.

- Who is in charge?

The CEO of the company would have to be the man in charge though I guess there is a body of board of directors as well. They have no influence over what should be happening on the show as to who should get a title shot or something but if something displeases them then they can do something about it. These guys would also be the ones who have a large number of shares of the WWE and are therefore interested in seeing the WWE do well financially. I think that the board makes a decision by the method of a vote and has the power to appoint or to remove an official. Even the CEO is not exempt from this procedure.

- Who books the matches?

The General Managers of a show who are appointed by the CEO. CEO's can overrule the decision of a GM. For any match to be sanctioned, it has to be met by the approal of the GM of the show or the CEO of the company.

- Where do new superstars come from?

It would be stupid to assume that WWE is the only place for pro wrestling. Therefore scouts wander all over the land and in some cases even to other countries looking for wrestlers.

- Where do “future endeavored” superstars go?

To other wrestling companies all over the world. Sometimes they even give up wrestling. That may be the thing assumed if you never hear of a superstar again.

- How does a WWE superstar ascend the ranks?

By attracting the attention of the crowds. Obviously you need to win matches as well but I guess you could say that the crowd only pays attention to you if you start winning matches. They start out at the bottom gain attention and victories and are given opportunities to have a shot at a midcard title and from there on the same stuff happens. It would also be safe to assume that WWE does surveys from time to time to gauge how popular or unpopular a superstar is.

Sometimes wrestlers, mostly the villanious characters may take shortcuts on their way to the by befriending orbribing certain top officials of the company.

- How do WWE Superstars make their money?

They are signed to paid contracts. As they get popular, they may also demand a part of their mechandise sales. Winning championships also results in getting an increased pay for the duration in which they remain champions.

It would also be safe to assume that once you become a main eventer you get more money that even winning an IC championship victory would get a midcarder. That is why you do not see main eventers without a title belt not challenging for the IC title.

- Why are blatant attacks outside the ring and after matches permitted?

They are not permitted. You can see the ref hollering at the top of his voice when these attacks happen. The security is brought in sometimes when these attacks continue for a long while.

Also I guess you can liken this part to a reality show like Big Brother. WWE allows their wrestlers to express themselves a bit if they believe that no serious injuries would take place from an attack. That is why maybe these wrestlers are not fined after such attacks.

- Should contract negotiations be aired on TV? (i.e. NFL & NBA collective bargaining processes)

A lot goes on inside the WWE but WWE only aires that on TV that the audience is interested in. If the audience were interested in a particular contract signing, they would probably air it.

- Should all WWE Champions get rematch clauses if they should lose?

I discussed this at length in another thread but the gist of it is that the remaatch clause is always put in there by a champion but a GM has the power to negate that. Basically think of the GM having a veto power in this case. The GM is the all powerful entity when it comes to booking matches.

- Can there be an increase in reality while still maintaining kayfabe?

I think that there can be. Basically wrestlers fight for championships because they believe that it is a great honor to win championships. That stuff is a bit outdated to me. They need to make it a bit more about money. It would be easier to understand and relate to if they involved money.

- How does “WWE” compare with UFC, NFL, MLB, NHL, etc?

Oh I guess that in kayfabe WWE is a sporting organization as well so in that sense it is comparable to the organizations you mentioned. I guess the difference in kayfabe between WWE and UFC is that UFC is a free form of fighting while in WWE the emphasis is on wrestling.

- Why do wrestlers (superstars) change their name?

It's a part of their image and maybe their own preference also comes into it at times. I mean even normal people can change their names by a small legal procedure so I don't see this as too big a deal.

- Why do wrestlers not always fight in their own weight category?

There are no weight categories in the WWE.

- Why does Chairman of the company not firing/release the wrestler if he wants to? Since he doesn't have to do in the ring always?

Like I said earlier, the board of directors exercise some control over the CEO's powers. They may act like ombudsmen for the WWE.

- Why is Undertaker/Kane interested in a materialistic thing like a championship?

Why is an unworldly creature like Undertaker interested in pro wrestling in the first place? There are some thing that you just cannot explain.

 

[Okay Fabian]

When I ask "How does WWE compare to other sports organizations (like UFC, MLB, NFL, NBA, NHL, WBA, PGA, etc.), I am of course asking about how "WWE" (the fictional on-screen sports entity) compares, not how WWE, Inc. (the entertainment organization) compares.

I realize pro wrestling is scripted entertainment, but the wrestlers, announcers, and authority figures on WWE TV don't recognize it as scripted. In their eyes (in kayfabe), they are working for a legitimate combat sport organization with a few entertainment elements added in to entertain the fans.

So, if you were to compare and contrast "WWE" as seen as a legitimate sporting organization, how would it stack up to other sports organizations?
(i.e. How does talent acquisition and development compare? How are hirings and firings and contract disputes handled? What is the logic behind booking matches in WWE and booking matches in UFC, or booking matches in WWE as compared to deciding who is the #1 player in tennis, or booking matches in WWE as compared with the ever-popular NCAA tournament)

Try to keep all answers inside the wrestling logic of the kayfabe "WWE". As I said earlier, most of us are pretty knowledgeable about how the actual business works. We are, after all, members of the IWC.

 

[THTRobtaylor]

One that has been missed is what is the reasoning for "storylines and angles".

The most successful sporting fixtures are the ones that have a storied history or rivalry, Man Utd v Liverpool, Sox v Yankees etc. WWE maximises the interest in their matches by ensuring all have some kind of story interest for the fans. To build this interest, wrestlers talk to the camera, the fans, their opponents and interfere in each other's matches, thus creating interest in themselves and their matches.