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Not everything you read is accurate, but there are certain sources that over the years have proven to be very credible, well one anyway.
There are people who work in the WWE (wrestlers, agents, office types, etc) that like to spill the beans about what is going on, probably in part just to vent. A guy like Meltzer has a ton of connections in the company, so he hears things. When you hear the same thing over and over again, it becomes worthy enough to make public. And I'm sure therte is a TON of stuff Meltz hears that he doesn't put in the Observer.
In terms of what constitutes politics. I would say the most common form of it is when the top guys (like Taker, HHH, HBK, Angle, etc) do everything to prevent new stars from being made. Those guys all have Vince's respect, and if a few of them say the same thing, then he'll tend to listen. HHH is on another level because he's married ot the head of creative. But even guys like Taker and Angle on SD, can align together and get in Vince's ear about who should (themselves and JBL) and who shouldn't be pushed (Eddie).
This has gone on throughout the history of wrestling, and really goes on in every type of workplace.
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