WWE announces plans to furlough superstars as Vince McMahon cuts costs during coronavirus outbreak – The Sun

WWE has announced plans to furlough staff members during the coronavirus pandemic – but insists it is "well positioned" to deal with financial losses.

Which exact employees and stars placed on the US government furlough scheme are still to be announced.

A statement released on Wednesday confirmed cuts of over £3million per month are to be made along with a temporary £110m saving from delaying the construction of WWE's new headquarters in Stamford, Connecticut.

According to PWInsider, chairman and CEO Vince McMahon has admitted that some wrestlers will be furloughed and others will lose their jobs due to the pandemic.

WWE nevertheless has moved to ensure stockholders that a rainy day fund of £400m will see them through the crisis.

In fact, the show is one of few sporting events to have carried on while others shut down.

The company has substantial financial resources which total approximately £400m."

Wrestlemania 36 took place on March 25 and 26 before a WWE employee tested positive for COVID-19 last weekend.

Wednesday's statement read: "Due to COVID-19 and current government mandated impacts on WWE and the media business generally, the Company went through an extensive evaluation of its operations over the past several weeks.

"The Company’s reductions of employee compensation and headcount result in an estimated monthly savings of £3.2m along with cash flow improvement of £110m primarily from the deferral in spending on the Company’s new headquarters.

"Additionally, the Company has substantial financial resources, both available cash and debt capacity, which currently total approximately £400m, to manage the challenges ahead.

"Management continues to believe the fundamentals of the Company’s business remain strong and that WWE is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term."

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