WWE Earnings Woes, Stock Drop Overshadow Return Of Vince McMahon’s XFL

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Saturday’s return of the XFL — an upstart pro football league being resurrected by pro wrestling impresario Vince McMahon, is being overshadowed by trouble at McMahon’s main compa…

The wrestling and entertainment concern reported spotty fourth-quarter results Thursday, with earnings per share of 78 cents beating Wall Street estimates but revenue of $322.8 million falling short. The company had already been under the microscope after theWWE shares dropped more than 7% in the wake of the earnings announcement, and were trading at a 21-month low on Thursday afternoon.

The XFL was a notorious industry and pop-culture fiasco when it launched as a partnership between NBC and McMahon in 2001. The league’s brief initial splash as a summer alternative to re-runs in those pre-streaming days was followed by a swift downfall. Bereft of top college draft picks or a consistently high caliber of play, the experiment of offering an alternative to the NFL wound up providing a first-year MBA seminar’s worth of business lessons .

The rules are aimed to encourage more kickoff and punt returns. Instead of kicking extra points, teams will follow touchdowns by choosing to go for a 1-point play from the 2-yard line, a 2-point play from the 5-yard line or a 3-point play from the 10-yard line. Live, on-camera interviews — verboten on NFL sidelines — will be conducted on the sidelines during the action.

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