WWE Issues Statement On Coronavirus Affecting Business And Event Cancellations
The sporting world has been turned upside down this week with the NBA, MLS, NCAA, NHL and other leagues announcing either the postponement or cancellation of their seasons due to the Coronavirus.
WWE has only confirmed one change so far due to the pandemic, which is moving Friday's SmackDown event from the Little Caesar's Arena in Detroit, Michigan to the WWE Performance Center in Orlando, Florida with no audience.
WWE's upcoming live event at Madison Square Garden later this month is expected to be postponed or cancelled, while the status of WrestleMania 36 is up in the air.
WWE issued a statement regarding the Coronavirus and the impact on its business. They noted that they have "substantial financial resources, both available cash and debt capacity, which currently total more than $0.5 billion." They said that the pandemic might adverse their business in several ways, including live event ticket sales and the sale of merchandise at those events. They added that they "may be directed to cancel, postpone or relocate certain upcoming events and the number of these changes is unknown at this time."
You can check out the full statement below:
WWE Statement on Potential Impact of COVID-19
WWE (NYSE: WWE) today communicated perspective regarding the potential impact of COVID-19 on the Company's financial performance.
WWE has substantial financial resources, both available cash and debt capacity, which currently total more than $0.5 billion, to manage the challenges ahead. The fundamentals of the Company's business remain strong reflecting the passion of WWE's fans and the quality of its content. Management continues to believe the Company is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term.
The health and safety of WWE's fans, performers and employees are the Company's top priorities and management is monitoring the situation closely domestically and internationally.
The potential impact of COVID-19, and corresponding changes in the way WWE operates, may adversely impact the Company's business including, but not limited to, its live event ticket sales and the sale of merchandise at those events. It should be noted that the Company may be directed to cancel, postpone or relocate certain upcoming events and the number of these changes is unknown at this time. The Company is currently unable to quantify the potential financial impact of COVID-19, but the financial impact to the Company may be material. Accordingly, the Company is withdrawing its previously announced first quarter and full year 2020 guidance due to the increased uncertainty of the financial impact of COVID-19 to the Company.
"While we remain committed to hosting WrestleMania at Raymond James Stadium on Sunday, April 5, we are putting contingency plans in place in the event that it is cancelled by government officials, civil authorities and/or local venues," WWE said. "The health and safety of our fans, performers and employees are our top priorities and we are monitoring the situation closely with our partners and government officials in Tampa Bay."