Kemo
09-29-2016, 11:00 PM
The prospects for TNA surviving as a wrestling promotion in time for Sunday’s Bound For Glory pay-per-view event and the subsequent TV tapings appear to be getting more and more grim by the hour. First, on Wednesday evening, a report from WrestlingInc revealed that according to “a veteran TNA talent,” a number of wrestlers’ flights to Orlando for next week have been cancelled. It wasn’t made clear if this was any of the advertised talent for Bound For Glory or just wrestlers set to be in matches not yet announced for the show.
In addition, the new issue of the Wrestling Observer Newsletter, there are arguably some mixed messages. Dave Meltzer writes that “the feeling now is [Dixie] Carter is going to make the best deal for her[self],” but that at least as of press time late last night, WWE, who’s in the best position for a mercenary deal like that, is not at the negotiating table. Of course, it should be noted that when WWE bought WCW’s assets in 2001, WWE had already passed on a buyout and stepped in when it became clear there were no other buyers. Like with WCW, if WWE were to get TNA, it would be expected that they would buy only the assets and not the company outright.
Meltzer added that TNA’s debt “is in the millions of dollars” with creditors including Billy Corgan, Aroluxe, and others, and the debt may very well be greater than the value of the company at this point. That gap is even more pronounced if the company can’t get the $600,000 they need by Friday: TNA will be in breach of its TV deals, quite possibly lose them, and literally lose all value other than that of the tape library.
As of this writing, TNA has 30 hours or so to secure funding. If they don’t, it’s hard to imagine a scenario where the company doesn’t need to file bankruptcy. Even if the tape library and trademarks are sold to WWE, that most likely won’t cover all of TNA’s debt. For WWE’s purposes, with no rush on their side and no competition for the intellectual property if it went it’s not ridiculous to suggest that they could get a lower price that way.
In addition, the new issue of the Wrestling Observer Newsletter, there are arguably some mixed messages. Dave Meltzer writes that “the feeling now is [Dixie] Carter is going to make the best deal for her[self],” but that at least as of press time late last night, WWE, who’s in the best position for a mercenary deal like that, is not at the negotiating table. Of course, it should be noted that when WWE bought WCW’s assets in 2001, WWE had already passed on a buyout and stepped in when it became clear there were no other buyers. Like with WCW, if WWE were to get TNA, it would be expected that they would buy only the assets and not the company outright.
Meltzer added that TNA’s debt “is in the millions of dollars” with creditors including Billy Corgan, Aroluxe, and others, and the debt may very well be greater than the value of the company at this point. That gap is even more pronounced if the company can’t get the $600,000 they need by Friday: TNA will be in breach of its TV deals, quite possibly lose them, and literally lose all value other than that of the tape library.
As of this writing, TNA has 30 hours or so to secure funding. If they don’t, it’s hard to imagine a scenario where the company doesn’t need to file bankruptcy. Even if the tape library and trademarks are sold to WWE, that most likely won’t cover all of TNA’s debt. For WWE’s purposes, with no rush on their side and no competition for the intellectual property if it went it’s not ridiculous to suggest that they could get a lower price that way.