WWE Hits 18-Month Low as Analyst Flags Saudia Arabia Dispute

(Bloomberg) -- Tough times are continuing to plague World Wrestling Entertainment Inc., and fresh blows to an event in Saudi Arabia are driving the stock to lows not seen since the spring of 2018.

According to Loop Capital analyst Alan Gould, several wrestling blogs reported that WWE had not been paid for an event earlier this year in Saudi Arabia, which led to a dispute at the company’s Crown Jewel event in the region last week. While some skeptics see the news as an opportunity to promote WWE’s brand, Gould thinks otherwise and does “not believe this was simply a stunt” to promote itself.

Representatives for WWE couldn’t be reached for comment regarding the matter. Stock in the company declined as much as 5.6% intraday, on pace for a fifth consecutive session, on more than twice the daily average trading volume.

Read more: WWE Plunges Most Since 2014 as Delayed TV Deal Slams Forecast

The fallout overseas is said to have prompted WWE chief executive officer Vince McMahon to have the local television feed in Saudia Arabia delayed, Loop Capital highlighted in a note to clients, and in retribution the Saudis delayed the plane carrying wrestlers out of the country.

And “if WWE has to write down the receivable and bear all of the expenses for the two Saudi events, this would materially impact 2019 earnings.”

To contact the reporter on this story: Kamaron Leach in New York at kleach6@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Scott Schnipper

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