Rey Mysterio has reportedly not signed a new WWE contract, according Dave Meltzer in the latest issue of the Wrestling Observer Newsletter.

As noted earlier this month, Jim Ross stated on a recent podcast that he believes Mysterio recently inked a new WWE deal. Furthermore, Dave Meltzer stated on Twitter, in response to rumors on Rey leaving WWE, that Rey "isn't going anywhere" for the time being.

In an update, the Observer now reports that Rey's contract is coming due but at least as of one week ago he had not inked that new contract. Rey is not expected to leave WWE, but it's not a lock that he won't.

It was noted that one of the keys to Rey's status is the future of his son, Dominick. There is the idea to not do anything to upset WWE officials because it could negatively impact Dominick's career.

Rey also has a very high contract with WWE because they didn't want him working for New Japan Pro Wrestling. Rey previously signed with WWE before there was an AEW, but after WWE signed their new TV deals, so they knew they had all the money they would need to sign talents they wanted, and Rey ended up with a strong deal. Rey was reportedly able to negotiate an 18 month contract out, and the feeling behind that was that it would be perfect timing to be a free agent. However, this was before the coronavirus pandemic hit and now is not the perfect time to be in need of work.

WWE is reportedly not giving out any raises right now, so talents who signed in the last year or so, after AEW got going, and received big contract offers based on WWE wanting to sign all the top marketable talents, are looking to be a lot more limited in their options. It's likely that AEW would have interest in Mysterio, but AEW's financial situation is also different these days. It's not a lock that AEW wouldn't make an offer to Rey, or even offer him more money than WWE, but it would be a harder decision to make due to the current climate.

Going back to the injury angle on this week's RAW with Seth Rollins, this was done to either give Rey a feud with Rollins if he stays with the company, or give him a storyline to eventually be written off TV if he leaves, similar to how they did with Matt Hardy.

WWE issued a storyline injury update on Mysterio earlier this week, announcing that his status is critical after Rollins shoved his eye into the corner of the steel ring steps.

"Doctors cannot properly assess the damage to his retina until the swelling subsides, as Rey is currently at-risk for infection," WWE's storyline report stated.

Source: Wrestling Observer Newsletter

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