Update on WWE Offering Long Term Deals

– WWE has started offering long-term contracts to several big stars with clauses strongly favoring the company. WWE has offered a five-year contract to Rey Mysterio and a ten-year contract to Randy Orton. The WWE contracts barely provide any way out for the wrestler, but are filled with out clauses that would let the company out of the deal. For example, if there is a three-year contract, WWE could break it at any time with just 90 days notice. Some top stars have enough leverage to broker better deals, but the company is still strict about protecting themselves with out clauses.

WWE would be protected if Mysterio suffered another injury or Orton had a serious meltdown and the company wanted out of the deals. In case of injury, WWE merely pays the downside guarantee, so there is incentive for wrestlers to continue working. WWE put the policy put in place in response to various wrestlers milking WCW’s guaranteed contract system. This leaves the wrestlers with very little leverage. Basically, if the wrestler is locked in for a long-term deal, the company can opt out at any time they please, so it’s basically a no-lose situation for World Wrestling Entertainment.