Thread: All Elite Wrestling
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Old 08-08-2020, 02:33 AM   #2997
Mr. Nerfect
 
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Quote:
Originally Posted by BigCrippyZ View Post
This is the problem, you don't know jack shit about the realities of the industry you're commenting on.

It's called contractual liquidated damages for breach of contract.

It would've almost certainly cost USA more to breach the contract than what USA would've received (net) in ad revenues from airing wrestling, no matter the differences in ratings, demos, or ad revenues. Not because of a lack of "quality" viewers, but because, even back then, almost every TV broadcast agreement for a broadcast like that, is made at least a year in advance, and the minimum damages specified for breach of the agreement for failure to broadcast on the date and time specified, are drastically severe by design.

That's because without the guaranteed time slot, there will be a lack of pre-paying sponsors to pay for the needed early or advance costs of production or pre-production that the broadcaster doesn't cover. That's not even getting into the minimum amount of liquidated damages for the reasonable anticipatory profits for the show's producer, which in addition to the broadcast rights fees, also often includes an anticipated minimum amount of profit for the producer for an increase in the amount and $ value of potential live tix sales, merch, % of food/beverage venue or vendor sales, etc.
Citation needed.

Those would be quite difficult in television, because TV schedules are constantly changing, and broadcasters would retain the right to preempt for special events—sporting, news, emergency, etc. Also, the WWF would likely angle for one too. And why would these no longer be commonplace? Why would producers cede power to networks’ scheduling when there is precedent to suggest they don’t have to?

And like with WCW getting canceled, if there was more money in the wrestling, they’d have gone with it, which you admit. Arguing that the dog show people are a juggernaut is not exactly a great counterpoint to “wrestling has never been that powerful.” You’re essentially saying “You’re right. The dog people had bigger dicks,” which is the point.

Remember when you tried to slip past people that an increase of 0.10 in the key demo would lead to an exponential increase in rights fees? This would value Monday Night Raw at $540 million a year. Man, USA must sure be grumpy about that deal.
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