Why WWE’s Non-Compete Clauses Still Hold Up Amid Government Crackdowns

WWE operates within a unique industry where professional wrestling benefits from exceptions that other businesses do not. They were considered an essential service during the pandemic for a reason. This great list of exceptions includes areas where government has even intervened, but there is always a loophole.

During a recent Q&A session on Fightful Select, Sean Ross Sapp was asked whether WWE’s 90-day non-compete clauses are still enforceable. The question referenced the government’s recent decision to ban most non-compete agreements, while also noting that WWE’s version of the clause does not operate like traditional non-competes.

WWE’s non-compete clauses are still enforceable because they are structured differently from those in standard employment contracts. After all, that government ruling was done to combat the use of non-compete clauses in the workplace and other industries like tech and finance fields.

On April 23, 2024, the Federal Trade Commission voted to ban most non-compete clauses in employment contracts. The ban was scheduled to take effect on September 4, 2024, but a federal court has since blocked the rule from being implemented. This legal challenge has left the status of non-competes uncertain in a lot of industries. However, WWE is still able to enforce them.

Professional wrestling is still able to carry on despite this government ruling. This allows WWE to continue enforcing non-compete clauses for its talent. Main roster wrestlers are subject to 90-day non-compete periods upon release, while those departing from NXT have 30-day restrictions.

These non-compete terms are a big part of WWE’s talent contracts, so much that just a Superstar posting about 90 days is enough to give their fans a clue that they have been released. It appears that will remain, despite what the rest of the world is doing. This only goes on to prove how unique of a business pro wrestling really is.