WWE wrestlers now have to get their own insurance

According to a source, WWE is now requiring all of their signed talent to personally purchase and maintain medical insurance for themselves. WWE will not be covering the cost of the insurance, but as independent contractors, the workers would be able to write off the cost of the medical insurance as a business expense.

This move had reportedly been rumored for a while, but was confirmed on Monday. The change was presented to WWE talent prior to the announcement that UFC was going to provide all of their fighters with medical insurance.

Sounds like a Tax Scam, what was the previous way?

With all the money and profit wwe make surely you would think they could do this. To me this is just sheer greed on wwe's part, we are talking about a multi-million pound company here.

Previously WWE sorted it all for them I'm guessing.
I hope for everyone's sake now that even if it's now the responsibility of the individual that WWE ensure that everyone is covered and up to date prior to getting in the ring.

With the lower guys that are on say about 40,60 or even 100 grand they already have to pay their flights and hotel etc and now with this it'll be even harder for them.

Maccs I'd be surprised if the WWE would be allowed to let anyone work without insurance, if a guys not covered I'd say he wouldn't get near a ring

In terms of the way it would work from a tax perspective it would be classed as "tax efficient" for them to work it this way round. The wrestlers would have their own policies (probably organised through a WWE collective) and can then deduct the amount from their tax returns when they are filed.

If it is organised the other way (i.e. WWE pay and workers receive a lower pay packet) then it becomes less efficient because it becomes a % reduction ANP after calculation of EBITDA ... The % amount saved will therefore be higher by this method.

I would still expect WWE to cover specialist treatment for top performers and the wrestlers to gain cover in a group method to reduce costs. The problem for them would come if insurance companies placed restrictions on their medical records. Due to the cost of medical procedures in some states it could be seen that it would be uneconomical for them to compete if this were the case.

bretmeharty - all associated costs with a job can be filed in a similar way off tax returns at the end of a fiscal year. While the performer will have the expense during the financial year they will then pay a lower % of tax at the end of the year. Plus, in America they do not use PAYE so all tax receipts are taken at the end of the year meaning that there would not need to be UK style reimbursements. Meaning there is no cost implication on the performer in question.

Very informative Josh cheers for that, Would wwe save any money in the long run doing it this way?

bretmeharty wrote:Very informative Josh cheers for that, Would wwe save any money in the long run doing it this way?

They will reduce a cost burden in terms of the amount of fixed expenses on their balance sheet - which is a help. Also, with wrestlers who may be difficult to insure they take the requirement away from themselves. Basically, if there is need to claim on the insurance and the company won't pay out then the WWE would previously have been liable as they would have been contractually obliged to provide treatment. Now the individual would have to foot the bill.

For top stars I am sure that they will continue to receive preferential cover as part of their settlements.

The short run savings are likely to be minimal, but in the long run their could be substantial savings if they see the costs associated with treatment plans and insurance rising substantially (which in North America is likely).

Either way the strongest benefit from the perspective of the WWE is removal of substantial staff expenses from their wage bill and balance sheets. Their profit margins will improve to their shareholders and cost to revenue levels will be better as well. All in all it should paint a healthier picture of the company. This is because a medical insurance policy in that area would run into many thousands of pounds per performer. They would still have standard insurance policies pertaining to wages / loss of income against performers though these would be for internal reimbursement.

It is understandable from an accounting perspective, though also a rather strange one from a company that is moving towards a more corporate / professional image (and by professional I mean in the sense of the professionalisation of Rugby)... therefore such policies that are a normal part of sports would be seen as a mark of the clean image of the industry.

It could also be that an insurance policy offers an inflexible option for a wrestler in terms of the medical professionals that they see. They may want to use doctors who are not approved by the WWE policy so dropping it offers the opportunity for them to pick and choose which doctors they wish to deal with.

Are you an accountant Josh? I studied accounting and now work in insurance in the states but I still didn't understand all of what you were saying, very knowledgeable

Although it makes sense business wise for the WWE to do this, it sends out the wrong corporate message that they don't care for their employees well being. Most Fortune 500 companies have health insurance provided by their employers, and although wrestlers can expense this back it should be provided automatically for them. I am shocked to hear also wrestlers lower own the card have topay for their own travel expenses!?

theanimal316 wrote:Are you an accountant Josh? I studied accounting and now work in insurance in the states but I still didn't understand all of what you were saying, very knowledgeable

Although it makes sense business wise for the WWE to do this, it sends out the wrong corporate message that they don't care for their employees well being. Most Fortune 500 companies have health insurance provided by their employers, and although wrestlers can expense this back it should be provided automatically for them. I am shocked to hear also wrestlers lower own the card have topay for their own travel expenses!?

Not an accountant, but I am a VP within an international company so got a bit of first hand knowledge!! I agree that it sends a difficult corporate message. The WWE have been trying to legitimise their business dealings and make themselves seem more mainstream to attract commercial sponsors and better talent. This kind of message doesn't seem to help this in my opinion...

In terms of paying their own travel expenses - well I am not sure about that, I know that in some industries it is expenses back but I would assume that WWE would simply block book part of a flight as its talent will all be moving from the same venue to the same venue.

Just to add my thoughts to what Josh said. If anything, it is of benefit to the wrestler not the WWE to have it this way around.

If WWE paid the premium, it is them that would benefit from the tax deduction. This way around, it is the Wrestlers take home pay that receives the deduction.

As for the announcement, I reckon that it is more to do with covering themselves. I thought that they were always resposnible for their own cover anyway (with regards to payment) - what this announcement is saying is that if you want to work with the WWE, you need to get some, its no longer optional.

I wouldnt be surprised if this is in response to Daffney suing Impact.

here's a link to how much there on, a few years ago i know but it wouldn't have changed that much I would have thought http://www.uk-muscle.co.uk/general-conversation/27877-wwe-wages.html

It's widely available that list so I'm posting it here anyway:

- Ashley Massaro: $131,000
- Batista: $813,000 (First class flight tickets paid for every week)
- Big Show: $1,000,000 (Base salary)
- Bob Holly: $217,000
- Booker T: $375,000
- Candice Michelle: $64,000
- Carlito: $319,000
- Chavo Guerrero: $206,000
- Chris Benoit: $488,000 (First class flight tickets paid for every week)
- Chris Masters: $253,000
- Christian - $396,000
- Danny Basham: $130,000
- Doug Basham: $126,000
- Eddie Guerrero: $372,000
- Edge: $704,000
- Eugene: $189,000
- Funaki: $124,000
- Gene Snitsky: $292,000
- Gregory Helms: $277,000
- John Cena: $1,743,000 (First class flight tickets, hotel accommodations, and ground transportation paid for every week)
- John Layfield: $786,000 (Five star hotel accommodations paid for every week)
- Jerry Lawler: $204,000 (First class flight tickets, hotel accommodations, and ground transportation paid for every week)
- Jillian Hall: $52,000
- Joey Mercury: $134,000
- Johnny Nitro: $143,000
- Jonathan Coachman: $175,000
- Kane: $ 851,000 (First class flight tickets paid for every week)
- Ken Kennedy: $133,000
- Kid Kash: $62,000
- Kurt Angle: $1,023,000 (First class flight tickets paid for every week)
- Lance Cade: $118,000
- Lilian Garcia: $90,000
- Lita: $286,000 (Mostly downside paid due to lack of wrestling)
- Maria: $41,000
- Mark Henry: $300,000 (Base pay)
- Matt Hardy: $322,000 (Missed over $70,000 of pay due to firing)
- Matt Striker: $43,000
- Melina: $155,000
- Mickie James: $72,000
- Nunzio: $186,000
- Orlando Jordan: $145,000
- Paul London: $177,000
- Psicosis: $122,000
- Randy Orton: $711,000 (First class flight tickets paid for every week)
- Rene Dupree: $289,000
- Rey Mysterio: $414,000
- Ric Flair: $508,000 (First class flight tickets paid for every week)
- Rob Conway: $186,000
- Rob Van Darn: $220,000 (Only received downside and royalties due to injury)
- Rosie: $105,000
- Shawn Michaels: $1,045,000 (First class flight tickets, hotel accommodations, and ground transportation paid for every week)
- Shelton Benjamin: $366,000
- Simon Dean: $132,000
- Stacy Keibler: $178,000 (Only downside paid during absence)
- Steven Richards: $94,000
- Torrie Wilson: $260,000
- Trevor Murdoch: $48,000
- Triple H: $2,013,000 (Allowed the personal use of company jet (10) times per year. First class flight tickets, hotel accommodations, and ground transportation paid for every week)
- Trish Stratus: $618,000 (Receives 20% of all Trish Stratus merchandise sold)
- Tyson Tomko: $127,000
- Undertaker: $1,811,000 (First class flight tickets, hotel accommodations, and ground transportation paid for every week)
- Val Venis: $210,000
- Victoria: $275,000
- Viscera: $130,000
- William Regal: $225,000
Others receive base rate of $300.00 if they are a big hit with the fans.

Is that their yearly wage? Triple H is god dam rolling in it!

I've updated my post above as a lot of the pays have added bonuses etc, that was taken in Feb 2006

Managed to find this too...

TNA pay 2008

A.J Styles $115,000
Alex Shelley $82,000
Angelina Love $60,000 (expected to rise)
Awesome Kong $90,000
BG James $115,000
Black Reign $80,000
Booker T $556,000 (First class flight tickets paid for to arenas, hotel & transportation)
Chris Sabin $75,000
Christian Cage $376,000 (First class flight tickets paid for to arenas)
Christy Hemme $157,000 (First class flight tickets paid for to arenas)
Elix Skipper $45,000
Eric Young $88,000
Gail Kim $105,000
Hemandez $90,000
Homicide $90,000
Jacqueline $60,000
James Storm $90,000 (expected to rise)
Jay Lethal $75,000 (expected to rise)
Jimmy Rave $65,000
Johnny Devine $50,000
Kaz $86,000 (expected to rise)
Karen Angle $75,000 (First class flight tickets paid for to arenas)
Kevin Nash $126,000
Kip James $123,000
Kurt Angle $600,000 guaranteed (First class flight tickets paid for to arenas, hotel & transportation)
Lance Hoyt $75,000
Matt Morgan $90,000 (expected to rise)
ODB $85,000
Petey Williams $76,000 (expected to rise)
Rellik $62,000
Rhino $140,000
Robert Roode $90,000 (expected to rise)
Roxxi Laveaux $90,000
Salinas $60,000
Samoa Joe $156,000
Scott Steiner $133,000
Shark Boy $70,000
Sanjay Dutt $85,000
Sting $673,000
Tomko $110,000
Traci Brooks $83,000
Velvet Sky $60,000 (expected to rise)

AJ is getting screwed!

Karen Angle on $75k ?!?
Booker getting 4 times what AJ is?

Crazy!

Remember this was 5 years ago Hobo....

Mr H wrote:Remember this was 5 years ago Hobo....

The TNA pay was from 2008 which was 3 years, the WWE was from 2006 which was 5 years. Also to reply to Hobo, Booker is back in WWE now anyway and i can't imagine any of the TNA guys are on as much as Hogan or Flair.

I assume this is for the year, if it is half the guys and gals on the tna list are on pea nuts for what they do?

FYI at that time exchange rates were fairly constant at about 2:1 so if you half those amounts it will give you salaries in £... also remember those would be gross as they are sub-contractors so tax would have to come off that for take home pay.