Quote:
Originally Posted by Mr. Nerfect
Wrestling fans = losers. They'd rather put on a dog show for fewer people than appeal to the power level of basement dwellers. They're neckbeards, not wizards.
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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.