WWE Making Reportedly Earning $30 Million Per Year For WWE NXT - USA Network Deal

As noted on Tuesday, the new WWE NXT – USA Network TV deal is reportedly bringing in at least $50 million per year to WWE, or around $1 million per episode, according to Dave Meltzer.

Guggenheim Securities analyst Curry Baker, who now has a "Buy" rating on WWE stock shares, estimates that the deal is worth around $30 million per year to WWE. WWE's announcement did not include how long the new NXT – USA deal is for, but Baker noted that it was for "one or two years."


Baker's information is based off conversations with the company, according to Deadline.

JP Morgan analyst David Karnovsky, who also remains high on WWE stock, estimated that the NXT – USA deal could bring in $70 million per year for WWE. Karnovsky's estimate is based on viewership and what WWE is being paid for their RAW and SmackDown TV deals, according to MarketWatch.

Furthermore, MKM Partners analyst Eric Handler, who also has a "Buy" rating on WWE stock, estimates the NXT – USA deal will bring in between $50 million and $100 million for WWE each year. Handler estimated that the deal could be worth around half the $1.9 million per hour that WWE is being paid under the new RAW and SmackDown TV deals, according to Yahoo Finance.


While WWE has not indicated that they will increase the number of yearly Takeover specials, which will remain exclusive to the WWE Network, Handler said WWE now has additional opportunities to further monetize the NXT brand, including the possibility of raising the number of annual Takeover events from 5 to as many as 12. He wrote in his note, "We anticipate WWE management could look to further monetize the NXT brand with international TV deals either through pay-TV or free to air networks."

Handler added that the new NXT – USA deal could be valued at between $5 and $10 per WWE share of stock, especially if Fox was also bidding for the show as was expected when it was believed that NXT would end up on FS1.

"The move to USA Network provides an opportunity to deepen our relationship with NBCUniversal and further build the NXT brand," said WWE Chairman Vince McMahon in Tuesday's press release. "Over the long term our goal is to develop a following that can be monetized to the same level as our flagship programs, Raw® and SmackDown®."

"USA Network and WWE have one of the longest and most successful partnerships in television history," said Chris McCumber, President, Entertainment Networks ? USA and SYFY, in the same press release. "As the #1 cable entertainment network, we're excited to add NXT to our weekly lineup alongside powerhouse flagship Raw, and to bring a new generation of Superstars to a wide audience."


NXT will begin airing on the USA Network each Wednesday night from 8-10pm ET on September 18, airing live from Full Sail Live on the campus of Full Sail University in Winter Park, FL. The show will then begin airing on the WWE Network 24 hours later, from 8-10pm ET on Thursday nights. The new AEW vs. WWE Wednesday Night War will kick off on October 2 as AEW's weekly TNT show premieres.