The Changing Landscape of Wrestler Compensation: Beyond the Ring
David Otunga, a former WWE Superstar and Harvard Law graduate, has recently shed light on a critical shift in how professional wrestlers are compensated. His insights, shared through his podcast and YouTube channel, highlight a move away from traditional royalty and residual payments towards upfront guarantees, particularly in the age of streaming.
The Decline of Residuals and Royalties
Historically, wrestlers could earn income not only from their initial appearance fees but also from royalties generated by the repeated broadcast of their matches and appearances on television and through physical media like DVDs. Otunga points out that This represents changing dramatically. With the dominance of streaming services like Netflix, WWE’s content library is increasingly licensed as a package, meaning wrestlers are typically paid a one-time fee for their contribution, with no ongoing royalties.
“All of WWE’s library, it’s streaming, and pretty much it’ll be at Netflix or whatever platform,” Otunga explained. “Those are licenced matches, licenced appearances. Basically, the wrestlers are being paid once for that. You’ll see no royalties or residuals from that. You’re paid for your appearance, that’s it.”
The Rise of Upfront Guarantees
In response to this shift, Otunga advises wrestlers to prioritize securing larger upfront guarantees in their contracts. This ensures they are adequately compensated for the long-term use of their work, even if ongoing royalties are limited. He cautions against being swayed by promises of future residual payments, as these are becoming increasingly rare.
“Make sure you ask for a higher guarantee. Don’t let them try to convince you or con you with residuals or royalties, as they’re not what they used to be. So take your money up front.”
Beyond Wrestling: Diversifying Income Streams
Otunga suggests that the most reliable path to ongoing income, including royalties and residuals, lies outside of wrestling itself. He recommends that wrestlers aim to build a profile that allows them to secure roles in television shows or movies, where such payments are still common.
This highlights a broader trend in the entertainment industry: the need for performers to diversify their income streams and build personal brands that extend beyond their primary profession.
Implications for the Future of Wrestling Contracts
This advice has significant implications for the negotiation of wrestling contracts. Wrestlers and their representatives will likely need to place greater emphasis on securing favorable upfront terms and exploring alternative revenue-generating opportunities. The traditional model of relying on royalties and residuals may no longer be sustainable.
FAQ
What are residuals in wrestling?
Residuals are payments made to performers when their work is rebroadcast or reused. They are becoming less common in wrestling due to the rise of streaming.
Why are royalties decreasing for wrestlers?
The shift to streaming services means content is licensed as a package, and wrestlers are typically paid a one-time fee rather than ongoing royalties.
What should wrestlers focus on when negotiating contracts?
Wrestlers should prioritize securing larger upfront guarantees and exploring opportunities to diversify their income streams.
If you use any of the quotes in this article, please credit “David Otunga” with a h/t to Wrestling Inc. For the transcription
Want to learn more about the business side of professional wrestling? Explore our other articles on contract negotiation and athlete representation.
