WWE’s $5 Billion Netflix Deal Could Be A Lifesaver For AEW

The wait is over, and WWE has announced a TV deal with Netflix NFLX worth $5 billion over the course of 10 years beginning in January 2025. The deal will also see Dwayne “The Rock” Johnson named to the TKO Board of Directors, where he will gain full rights to the name “The Rock.” WWE’s stock jumped past $90 as a result of the deal, which is more fantastic news for WWE and TKO holdings, but also a sigh of relief for AEW.

“This is a super game changer,” said TKO President and COO Mark Shapiro to CNBC. “When you look back at the chapters of sports media history, new chapters are driven by extraordinary new paradigms. ESPN and Turner bringing the NFL to cable in1987. Rupert Murdoch bringing football to FOX in 1994. When new histories are written, Raw on Netflix will be such a chapter starter.”

WWE had been targeting Netflix throughout the negotiation period, despite rumors that WBD CEO David Zaslav and Warner Bros. Discovery were making a strong push for a WWE deal due to its recent signing of CM Punk. The months-long rumors put the fear of God in AEW, which currently airs its programming on WBD through AEW Dynamite (TBS), AEW Rampage (TNT) and AEW Collision (also on TNT).

WWE signing with Netflix is no guarantee that AEW will re-up with WBD. Following a high-profile merger between WBD and AT&T T in 2022, Warner Bros. Discovery has been making cuts all across the board and does not seem interested in spending too much money. But given AEW’s solid ratings over the course of the five years with WBD, and WWE agreeing to partner with Netflix, WBD may decide to settle with AEW—especially if it agrees to part ways with the NBA. Having said that, in December, longtime NBA broadcaster Ernie Johnson noted that he has full faith that WBD will retain its NBA broadcasting rights.

“We’ve been with the NBA for so long, we’ve built up such a great relationship, that I’ve never thought we wouldn’t be part of it in some form,” Johnson told Deitsch (h/t Awful Announcing). “I realize that the landscape is changing in how people watch and that kind of thing and streaming being what it is. But no, I have full confidence we will still be partners with the NBA when that time comes.”

AEW will likely continue its negotiations with WBD, which will remain stressful, but less stressful now that WWE is signed to Netflix. WWE also had recent talks with Disney and Amazon Prime, which was thought to have been the favorite.

Netflix has long-since been searching for live sports programming, and they’ve finally found it through WWE. With Netflix focused on growing its subscribers, The WWE-to-Netflix deal will be a very interesting long-term case study as to how live sports translates to subscriber growth. It’s also important to note that Netflix has an opt-out clause after the first five years of the deal.

As a result of the deal, The Rock will receive restricted Class A stock valued at $30,000,007. The stock will vest at 25%, around $7.5 million, as of the signing of the deal this week.

“Very few people on the planet understand the convergence of sports, entertainment, media, and business like Rock,” said WWE Founder Vince McMahon. “We are proud to have him join the TKO board to help take our company to new heights.”

“My grandfather, High Chief Peter Maivia, and my dad, Rocky ‘Soulman’ Johnson, would’ve never thought this day would come. Which is why I’m very humbled to have a seat at the table that has decades of history and family legacy for me,” said The Rock, who made sure to throw in the line “seat at the table.”

WWE’s Netflix deal means the promotion will continue to command headlines as it heads into WrestleMania full steam.