ESPN Responds to Claims Its WWE Deal Is a Financial Mistake

ESPN has addressed claims that its massive WWE streaming deal is already costing the network more than it’s worth.

On Wrestling Observer Radio, Dave Meltzer questioned ESPN’s $325 million-per-year partnership with WWE, saying the early numbers don’t justify the price tag. According to Meltzer, while the launch of ESPN Unlimited and WrestlePalooza gave the service a short-term boost, the actual revenue isn’t close to matching the company’s investment.

“If every month ends up kind of like this one… it’s worth $35 million a year. Now, they’re spending $325 million a year for $35 million a year of revenue coming from having these WWE events. Which is a very bad number.”

Meltzer estimated WrestlePalooza brought in 100,000 to 125,000 new subscribers, but said ESPN’s long-term plan could prove risky.

“That’s why these companies are losing lots of money on this type of stuff—with the idea that down the road, when we get 50 million subscribers paying 30 bucks, we’ll be able to afford all this.”

However, ESPN isn’t staying quiet about the criticism. In a statement issued via Steven Muehlhausen, the company pushed back against Meltzer’s claims and insisted the partnership is off to a solid start.

“Things are going well and we have started strong. We don’t provide the viewership specifics, but things have been going well.”

That short but confident statement suggests ESPN isn’t interested in debating Meltzer’s math. Still, the numbers raise questions about whether the network can turn WWE’s streaming presence into long-term financial success.

While ESPN remains optimistic, Meltzer’s analysis paints a far less profitable picture. For now, the company insists it’s seeing early success—but the real test will come when the next big WWE premium event hits ESPN Unlimited.

Do you think ESPN’s partnership with WWE is worth the price tag, or is this deal destined to lose money in the long run? Let us know your thoughts below.