Vince McMahon Warned WWE Could Go Out of Business During Monday Night Wars

WWE’s battle with WCW during the Monday Night Wars is remembered as one of the most intense periods in wrestling history. While the company eventually bounced back with the rise of Steve Austin and the Attitude Era, a former WWE producer claims things were far more dire behind the scenes than most fans realized.

David Sahadi, who worked in WWE production during the late 1990s, recently spoke about that era during an appearance on Wrestling Observer Radio. According to Sahadi, the company was in serious trouble during WCW’s long stretch of Nitro victories over Raw, and Vince McMahon did not hide that reality from his staff.

At the time, WCW had dominated the ratings war for over a year. Sahadi said McMahon called a meeting to address the situation and made it clear the company’s future was on the line if things didn’t change quickly.

“If Stone Cold never arrived and existed, what would have happened with WWE? Back then we got— we have like, you know, lost the wars because we were two months away from going under.”

Sahadi said McMahon’s message to the team was blunt and direct. The company needed a turnaround immediately or the consequences could be devastating.

“Vince held a meeting where he said, ‘WCW is kicking our ass. We’ve been losing the ratings for over a year, and if we don’t change we’ll be out of business in two months.’”

The situation was serious enough that Sahadi believes WWE was relying on company assets to stay afloat during that period.

“I believe that Vince and Linda owned Titan Towers and they were taking liens off of that to make payroll, to pay for everything.”

Sahadi pointed to the rise of Steve Austin as the turning point that helped WWE regain momentum. Austin’s anti-establishment character eventually exploded in popularity, particularly after his feud with Bret Hart and the famous Mike Tyson storyline heading into WrestleMania 14. Looking back, Sahadi believes the company’s survival may have hinged on that shift in direction.

“That’s how close we were to being out of business. And if Vince kills Stone Cold, you might not be here talking about this today.”

The Monday Night Wars ultimately ended with WWE defeating WCW and reshaping the wrestling industry, but stories like Sahadi’s continue to shed light on just how precarious that era was behind the scenes.

Do you think WWE truly could have gone out of business during the Monday Night Wars, or would the company have found another way to survive? Let us know what you think and drop your thoughts in the comments.

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