ktc

Dueling Chair Shots
by Kurt La Mont
column date 06/13/2000

The solution to all of ECW’s problems

It’s become obvious that ECW is currently a shell of its former self. Ratings have declined about 40% from its peak in January to the standard 0.8 rating we see every Monday. Clearly there are problems in ECW.

So how does Paul E solve these problems?

It’s really obvious to me, Paul E needs to sell a majority interest of ECW.

I’m sure you’re saying to yourself “Sell ECW?? What the hell are you talking about?”

Let me explain.

First off a new buyer would have financial strength. It’s a safe assumption that if someone purchased ECW they would be in it for the long haul. They would realize that money needs to be pumped into the promotion to help it grow. This could range anywhere from improving the ‘minor league’ feel of the production of the show to bring in new wrestlers to heavily promoting the show. A new buyer would realize that even though pumping money into ECW would probably cause them to take a loss in the first year or two of ownership it would be necessary in order make ECW stronger down the road (i.e. make more money). It’s the old adage of “it takes money to make money.” A buyer with financial strength would be able to do this. Right now ECW can’t afford to lose any money because they have nothing to fall back on. If ECW loses money they fold.

Secondly, the new buyer would be able to assemble a quality staff to deal with all of the administrative aspects of running a company. ECW is definitely not the model or organization and this would clearly help them tremendously. And if this were to happen I would imagine that a PPV venue might be announced more than 1 month in advance. Now there’s a crazy thought!

Thirdly, an outsider that purchases ECW will likely have some business expertise and be able to pull better deals than what currently exists. You hear everyone in ECW whine all the time about how awful TNN is but they were the ones who negotiated the contract. A new buyer would most likely be able to strike a better deal. The same would apply to everything else as well, such as booking buildings, merchandise, etc..

On a side note while it looks like I’m bashing Paul E, businessman, I think that is very impressive that he’s made it this far on his own, more or less. It’s just that I think the time has come where, in order for ECW to grow the way it needs to, Paul E needs to step back in certain areas and let more qualified people step in.

So you’re asking yourself now “But how does this improve ECW? The big problem right now is lackluster booking and those points only focus on things outside of the ring.”

I would argue that the booking in ECW was at its peak in 1995 and since then has declined steadily each and every year. What do I believe is the cause of the decline in the booking? The growth of ECW. As ECW has grown, more time has been devoted to running shows in more markets, putting the syndicated show on more TV stations, running PPVs, merchandise, securing a national cable deal, figuring out how to pay the wrestlers, etc.. When more time is devoted to things outside of the ring, the product in the ring can only get worse because less time is being devoted to it.

Paul E’s major strength is booking a wrestling promotion. Paul E’s major weakness is operating a wrestling promotion. Slowly over time, Paul E’s weakness have overwhelmed his strengths.

Now while I am suggesting that Paul E needs to sell ECW, I am not suggesting that he divorces himself from the company. As a condition of the sale I would propose that he negiotiated a deal where he would be given a contract from the buyer to remain in charge of booking, TV production and overseeing the wrestlers. It would very similar to a cross between what Jim Ross and Vince Russo do (minus the excessive run-ins and illogical booking). Under this scenario Paul E’s focus is on the product (his strength) and not the operations (his weakness) of ECW.

Selling ECW would be the best thing to happen to Paul E. Right now ECW consumes Paul E. I’d bet that there is not a day that goes by that Paul E does not devote his entire energy to ECW. Take a look at Paul E. I don’t know how old he is but I think that he is aging in dog years now. For every year that goes by he ages seven years. He probably hasn’t had a vacation in the last 6 years and no one probably needs one more than him. Hell, even Misnik took a vacation in the past month. I’m sure Tom will tell you the benefits of a vacation.

If Paul E sold ECW he could take that much needed vacation. He would also be free and clear of the problems that I’m sure he would rather not deal with, that currently consume his time. He wouldn’t have to deal with TV problems. He wouldn’t have to worry about booking buildings to run shows. He wouldn’t have to worry about promoting shows. He wouldn’t have to worry about meeting payroll. He wouldn’t have to worry about merchandise. He wouldn’t have to worry about getting the correct paperwork for Super Crazy to wrestle in the US. He would be free to focus his entire energy to worry about what comes across on TV. And when he is able to focus on that alone he is at his best.

So now you ask “Is it worth it to Paul E to sell ECW? What is ECW worth?”

The best way to determine that is to compare it to a similar company. The only company that can be used as a good comparison is the WWF, or more accurately the WWFE. (Because WCW is a subsidiary of Time Warner and not a company that stands on its own it is difficult to gauge its true value). The WWF is worth approximately $1.2 billion. While comparing the WWF and ECW isn’t necessarily comparing apples to apples, it’s the best know comparison out there.

I would estimate, taking a rather conservative approach, that ECW is worth roughly 1% of the WWF. Using 1%, ECW would be worth approximately $12 million. With wrestling being as popular as it is these days this amount is a bargain. With a reported 5 potential buyers I would guess ECW could pull in at least twice that amount. However, as much as I like playing appraiser the exact amount isn’t the important. Whether it’s $5 million, $25 million or $100 million, the important thing is that selling ECW would set Paul E. up financially for the rest of his life.

Selling ECW is the best thing that could happen to this promotion. It would also be the best thing to happen to Paul E. Selling ECW would set Paul E up financially for the rest of his life. It would also allow him to focus on what he does best, which is booking a promotion. Without having to deal with the stressful problems outside of the ring, Paul E can focus on what happens inside the ring and what comes across on TV. And when this happens the product will improve. And when the product improves everything else will fall into place.

I know I am looking forward to the day when Paul E. “sells out”. Hopefully, Paul E steps back and realizes that same thing. It’s in everyone’s best interests as wrestling fans for him to do so..

More good stuff next week. Send comments, questions, and feedback to [email protected]