Ok, but let´s factor one major aspect you forgot: the PPV cut, the cable companies get. On average about 50% of the PPV price goes to the cable companies, so that cuts your income in half already.
That would mean with a 10k average, you'd earn 2.159.400.
Then you have to subtract flying all the wrestlers in 12 times per year. I'm not sure, but I'd guess the Impact Zone cost some money? You'll have to rent that place 9 maybe 10 times per year. Then factor in all the expenses made for the actual production of the PPV itself. The pay for the people working backstage who have to come a extra 12 times per year and the food and drinks they need to get for all of the staff, wrestlers included. And probably some stuff I forget.
Those are all expenses you will have for every PPV, so that's probably a fixed price per PPV. And they only have a 2 million budget for that and that doesn't even include the wrestler's pay, which probably is the most.
With 3 per year, with the current 10k average, you'd earn 539.850 per year. All those fixed expenses will linear lower per PVV, so that doesn't make a real difference. It's still 1.5 million less per year, but that's because you're just cutting PPV's. But you have to pay less, overall, to the wrestlers and you can make more profit if you have a very successful PPV.
I'm just throwing out a number here, but let's say with 12 PPV's you have to average 30k per month to break-even. But with 3 PPV's you maybe still need 30k, but because you only have to fly the expensive guys in for just 3 times per year, you save a lot of extra money.
But all in all, it's just minimizing losses.
That would mean with a 10k average, you'd earn 2.159.400.
Then you have to subtract flying all the wrestlers in 12 times per year. I'm not sure, but I'd guess the Impact Zone cost some money? You'll have to rent that place 9 maybe 10 times per year. Then factor in all the expenses made for the actual production of the PPV itself. The pay for the people working backstage who have to come a extra 12 times per year and the food and drinks they need to get for all of the staff, wrestlers included. And probably some stuff I forget.
Those are all expenses you will have for every PPV, so that's probably a fixed price per PPV. And they only have a 2 million budget for that and that doesn't even include the wrestler's pay, which probably is the most.
With 3 per year, with the current 10k average, you'd earn 539.850 per year. All those fixed expenses will linear lower per PVV, so that doesn't make a real difference. It's still 1.5 million less per year, but that's because you're just cutting PPV's. But you have to pay less, overall, to the wrestlers and you can make more profit if you have a very successful PPV.
I'm just throwing out a number here, but let's say with 12 PPV's you have to average 30k per month to break-even. But with 3 PPV's you maybe still need 30k, but because you only have to fly the expensive guys in for just 3 times per year, you save a lot of extra money.
But all in all, it's just minimizing losses.



Reply With Quote



Bookmarks