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WWE issues statement on company not paying taxes



WWE issued the following statement courtesy of Prowrestling.net:

The recent accusations and subsequent reports by Connecticut-based media that WWE (NYSE:WWE) was “caught” not paying taxes is blatantly false. Publicly traded companies often review taxes with regulatory authorities.

With regard to this recent and specific tax inquiry, WWE believed it should be classified under the single-factor approach to calculating its taxes based on the language of a statute that specifies the approach for businesses whose primary function is broadcasting activity.

WWE and the state agreed that the correct application of the statute to WWE was a bifurcated method with both approaches applying to different parts of its business.

As a result of the agreement, WWE paid the state approximately $500,000 annually over and above what WWE already had paid for the years 2005 through 2010, plus interest, and both WWE and the state have agreed to the bifurcated methodology moving forward.

Since 1982, WWE has grown from 12 employees to more than 700. WWE has paid $600 million dollars in wages to employees in Connecticut and $55 million in payroll and other taxes over the past ten years.

By any set of standards, WWE is an exemplary, CT-based, publicly traded corporation.

On the issue of tax credits, WWE has a responsibility to its shareholders to apply for tax credits when possible. When WWE launches its network (estimated to employ an additional 200 people), we hope to be considered for Governor Malloy’s Next Five Program, which provides additional economic assistance to companies like WWE.

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3 Responses

  1. Denis says:

    One thing I’ve always wondered: If the WWE doesn’t consider themselves ‘wrestling’ but instead, ‘sports entertainment’ does that mean the superstars are members of the Screen Actors Guild?

  2. Honest Man says:

    They shouldn’t be in anything. It’s the downside of wrestling.

    There job is being a wrestler, they get trained and become a pro. A contract only is there agreement to only do their job at one place, or to base their job out of one place. They are independent contractors.

    WWE, TNA, ROH, CZW, Chikara, AAA, CMLL, ER, HOH, ISW, AJPW, NJPW, IGF, WWC, OVW, DG, NOAH, etc. All of these companies work the same way. No one is ever being hired to a job by signing with the company. When they get fired, they are still wrestlers and have other companies out there where they can get a spot at. They can’t have their career taken away from them by the employer.

    Does it suck wrestlers have to deal with things they would have taken care of if wrestling worked like other business? Yes. However this is the way it works, and i’m sure anyone making a career out of the business knows this going in.

  3. Fisha695 says:

    Yup one of the easiest ways to describe how the business works is to compare it to a Plumber. WWE is You while the Wrestlers = the Plumber. You hire the Plumber to do a job and pay him for that job, when the contract with the Plumber is complete you never have to worry about them again if you don’t want to.

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