WWE reported received nearly $3 million for bringing the inaugural Clash at The Castle Premium Live Event to Cardiff’s Principality Stadium last year.
A new report from Wrestlenomics sheds light on an April press release from the Welsh Government website on the local economic impact of Clash at The Castle. According to the press release, Clash at The Castle “delivered a massive 10:return on investment by channeling £21.8 million (or $27.8 million) back into the Welsh economy.”
According to this statement, the Welsh Government paid one-tenth of that amount to WWE, which would be £2.18 million pounds ($2.773 million dollars). It was noted that the statement may have been rounded, which would bring the payout figure to $2.8 million, or just under $3 million.
In comparison, WWE was paid nearly $2 million to bring the Backlash Premium Live Event and the go-home SmackDown to San Juan, Puerto Rico in early May. The Puerto Rico Convention District Authority and the Puerto Rico Tourism Company, both of which are connected to the Puerto Rican government, provided WWE with a $1.5 million cash subsidy and an additional $300,000 in-kind contribution to run the successful shows on the island.
The South Wales Argus requested information from the Welsh Government under the Freedom of Information Act in October in order to learn more about the funding provided to WWE for Clash at The Castle, but the request was denied due to “commercial interests.” The Welsh Government also refused to answer questions about whether there were any conditions “attached to [WWE] receiving this funding” for the same reason.
In addition to the local government subsidies, WWE makes millions of dollars in ticket and merchandise sales at these events. WWE listed a $8 million gate for Clash at The Castle in its Q3 2022 earnings report.
The Welsh Government touted an independently produced Economic Impact Study that polled over 3,000 Clash at The Castle attendees. The study discovered the following statistics: The event drew a diverse audience, with nearly 25% of spectators being female, and many of the spectatators were young.
WWE CEO Nick Khan stated in his prepared statement for the Q3 2022 earnings call that WWE wanted to replicate subsidy agreements like the one they made with the Welsh Government for WWE Clash at The Castle.
“Look for more from us in the site fee space, a new financial opportunity for us,” Khan said last year. “We are in active conversations with other local governments and tourism boards about future events.”
During the Q1 2023 earnings call earlier this year, Khan reiterated that WWE is negotiating with local governments and tourism groups around the world about receiving subsidies to run Premium Live Events in their markets. Khan made the 2023 comments in response to a question about Puerto Rican officials paying WWE a seven-figure subsidy for Backlash.
“In terms of Puerto Rico and the subsidies, yes, I think we kicked it off with our show [Clash at The Castle] last Labor Day weekend in obviously, Wales, where there was what we believe to be a significant government subsidy for that event. We hit all the markers on it. And we’ve now started to replicate that, both domestically and continue to do so internationally. So Puerto Rico, we’re having conversations with a number of different cities in the United States and abroad in terms of what we can do,” he said earlier this year.
Khan made similar comments during his prepared statement during the Q1 2023 earnings call.
“Looking ahead, the coming months are an exciting moment for our company as we embark on our biggest run of international shows in WWE history. This coming Saturday, Backlash will emanate from San Juan, Puerto Rico, where Bad Bunny will compete in rang against Damien Priest, and what will be a completely sold out arena. We also received a seven-figure subsidy for this event. We are in a dialogue with a number of different local governments, tourism groups and event organizations about the economic impact of WWE when our events come to town. Look for more updates on this in the future as these conversations progress,” he said back in May.
WWE Clash at The Castle took place on Saturday, September 2 at Cardiff’s Principality Stadium during Labor Day Weekend in the United States. The show was broadcast on Peacock and the WWE Network. The Undisputed WWE Universal Champion Roman Reigns retained his title over Drew McIntyre in a match that saw the main roster debut of Solo Sikoa.
