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TNA Investor situation
Topic Started: Apr 25 2016, 10:11 AM (2,208 Views)
The Swigg Lebowski
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There are rumors abounding that Aroluxe, the company that does production for TNA, is trying to buy TNA. They want majority ownership, and Dixie doesn't want to cough it up.

There is also rumor that if TNA doesn't make their payments for their production, that Aroluxe assumes a majority ownership of the company.

So how long before we see TNA fold, or Dixie ejected?

P.S.-411, Wrestlezone, PWInsider, and more are all citing a WON story, so if someone has a WON subscription, feel free to flesh out some details
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Mad Dog
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There was a point where Spike TV wanted to buy it and Dixie wouldn't do it because they wanted her off of TV.
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Scrooge McSuck
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From this past weeks WON...

"After 14 years and tens of millions in losses, TNA is at a major crossroads.

The company has been financially strapped, can no longer afford to pay the rent at their current office and has lost much of their key talent and has admitted looking for an investor.

The game, which is coming down to the wire, is whether an investor will step into the picture that has the ability to save a company that has fallen almost completely off the radar, and if they do, who from the current regime will be left standing.

Numerous sources have confirmed that Aroluxe, a Brentwood, TN, advertising and production agency, paid the bills that allowed the last set of television tapings to go on, and kept TNA from breaching its key television deals by not providing a regular new weekly product. The description we were given is that Aroluxe has been funding the company as an outside investor in exchange for an ownership stake. Panda Energy, which had been the parent company of TNA, had fully divested themselves from funding the company, which led to the financial situation getting worse. Another aspect was that the hoped for revenue from Pop TV based on an ad sharing deal hasn’t materialized because the ratings have been far lower than hoped for and wrestling is a tough sell to advertisers. The latter was a key reason Destination American internally gave for canceling TNA when it was one of its highest rated shows. But Destination America, like Spike, paid TNA for the programming as opposed to the ad revenue share deal with Pop. But TNA does get paid for programming by its international stations in India, Canada and England, which is the main revenue they produce. But they have to keep producing new weekly content and monthly specials to maintain those contracts.

With another television taping coming this week in Orlando, and more money earmarked by Aroluxe, that is more of a down payment of sorts for a larger stake.

In the end, the company headed by CEO David Johnson, who started his career with Sinclair Broadcasting Company, the parent company of ROH, was looking for a controlling interest in the product. Dixie Carter is believed to have been the 100 percent owner now that her parents have divorced themselves from the company, and Jeff Jarrett gave up his stock as part of a business deal that included his short-term return to the company. She’s been attempting to sell points for funding while maintaining 51 percent and thus company control. Aroluxe would not on paper appear to be the kind of company that could support TNA.

It lists its services as legal marketing, healthcare marketing, enterprise marketing, social media management, TV production, media buying and digital and PPC management and web design.

The connection with wrestling and TNA is that their TV production company headed the production of the television show for a short period of time last year. And of the seven listed employees on the web site, two of them, Ron & Don Harris, are former pro wrestlers who have worked on-and-off for TNA as wrestlers, security and in production dating back to the company’s inception.

When Johnson was hired at CEO in January, the company listed itself as primarily an advertising agency with clients Segway, Fisker Automotive, two small companies, the latter of which declared bankruptcy in 2013 and was reorganized as Karma Automotive, and The Cochran Firm.

Most telling is that Aroluxe’s revenue in 2015 was listed as $2 million. Thishardly gives them the kind of a financial cushion to be able to rebuild TNA. However, there is talk that one of the major officers has connections with someone with the money to run the company.

Carter had originally gone to the company’s international television partners such as Sony Six in India, Challenge TV in the U.K. and The Fight Network, with proposals of selling 10 percent to each entity with the idea they would help fund the company, but got no takers.

The belief is that Carter is still attempting to strike a deal with a different company for funding and allow her to maintain a majority interest, as Aroluxe is looking for about 55 percent so they could take over and make changes. Some type of deal has to happen relatively soon. Among the many problems with any deal is that Aroluxe, and Cummins Station would likely have to be paid back what they are owed, as well as other monies owed which is a significant amount, not to mention a purchase price, and they’d have to fund a company that is producing very little revenue outside of what it gets for its television contracts. Clearly the television contracts are not nearly enough to support the company or they wouldn’t be in the situation they are. But right now the brand is cold so there is no current prospects of being able to be profitable with traditional wrestling revenue streams like house shows, PPV or merchandise and licensing. There is a tainted brand name and some wrestler contracts. You would probably have to rebrand the show, change the direction, keep some of the key talent because you need some stars, but and bring in new talent. Anyone coming in is essentially going to have to rebrand and retheme the company and start at ground zero, and there will be very significant early losses from doing so. They would also have to spend to bring in some talent that would bring attention to the brand, and if they are taking over, the likelihood is they would want to put a new team in when it comes to management. The point being, if someone other than Carter ends up with the company, they’d have to have a vision of what they want and the ability to endure substantial early losses as well as starting out having to spend significant money to get things back to zero. Or Carter will have to find someone willing to pay back Aroluxe and others, as well as fund the company, while keeping her in charge.

The lone upside is that if someone does want to get into the wrestling business, and be bullied by Vince McMahon in the process, they at least have access to some key television and wrestler contracts. As we’ve see with Jeff Jarrett, Bruce Tharpe and even ROH and New Japan, is the difficulty in getting either viable American or international television deals.

The upside is you start out with exposure in the U.K., which in theory can be a hot market and at one point TNA may have been able to run it as more of a base market (the most recent tour indicates that is no longer the case) and you would have U.S. exposure, but on a weak station that isn’t drawing the casual fan viewer.

Mike Johnson of Pro Wrestling Insider reported that Aroluxe had been loaning money to the company with the idea that it had to be paid back by a certain time or they would get control of the company. I’m not saying that’s wrong because I don’t know the details of the deal, but it is inconsistent with things we’ve been told for weeks that were happening. What we had been told is that Aroluxe was buying a stake, funding the company, but in the end they wanted controlling interest and Carter didn’t want to give it up.

Exactly what those changes would be is open to speculation. Don Harris and Jeff Jarrett were extremely close during much of the TNA run but sources close to the situation say that they were not believed to be close in recent times. But there is a relationship that dates back to 1987, when the Harris Twins started as pro wrestlers for Jerry Jarrett’s USWA after the country band Sawyer Brown, who they had worked for as security, recommended them to Jerry Jarrett.

The identity of Aroluxe as the people investing money into TNA was kept quiet as there was fear that if it got out, it could impede making the deal. As soon as it got out, there became major controversy on Twitter because the Twins have Nazi symbol tattoos and at one time had worn SS T-shirts into the ring. It creates a potential uncomfortable situation because Brad Schwartz, who is Jewish, is the head of Pop TV.

After the story broke, TNA contacted talent to tell them to ignore the distractions and that the tapings this week were still on. A talent meeting was expected on 4/21, before the first day of television tapings, to discuss the situation. TNA had the money, believed to be from Aroluxe, to cover the 4/21 to 4/24 tapings early enough that flights were purchased and they were able to lock down the dates several weeks ago, unlike the prior tapings where everything wasn’t finalized until very late in the game.

One thing notable is that the TNA television show has been pretty much devoid of graphics of late because the graphics were handled by an outside company that is no longer working with them.

With such a stripped down roster, almost everyone backstage has become an on camera character with the exception of Pat Kenney. Producers Al Snow and Shane Helms are now on television, and Snow. Snow is in a role which sounded desperate on paper but when actually seeing it, he’s pretty great in it. The television show has been better this year, as creative has done a good job with the roster they are left with, but there is no momentum and Pop TV’s canceling the second Tuesday night airing of the show can’t be considered a positive. The decline in viewers over last year, even though they are available in 23 million more homes, speaks to the lack of momentum.

Still, they do have a prime time show on a station that reaches 80 million homes in the U.S., an exposure level that no promotion other than WWE has. They have stronger international deals than any pro wrestling company other than WWE. They also no longer run live events, and since a January show, there have been no hints of a PPV show, even with Slammiversary, usually one of the company’s big events, usually scheduled for June.

In an interesting note, while it was reported here shortly after it went down, Jim Ross noted that his friend, country music star Toby Keith had a legitimate interest in buying the company and that Keith discussed with Jim Ross a potential involvement. As noted at the time, Keith and Bob Carter, who was the majority owner at the time, were in talks, at Keith’s home, but they fell apart due to the insistence that if it was sold that Dixie Carter keep a position with the company. That fell apart. This took place in 2014, when TNA still had its deal with Spike TV. While Ross didn’t mention this, Keith was originally behind Jeff Jarrett starting a new company after the TNA deal fell through. His funding Jarrett’s new group was contingent on Jarrett first being able to get a viable television platform, which he was unable to do, and there has been no talk of Keith involved with pro wrestling for a year."
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Mad Dog
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I'm still rooting for the Harris Brothers to win this battle so TNA can have more Nazi related programming and gimmicks.
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SamoaRowe
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Gawd, just pull the plug already.
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Scrooge McSuck
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TNA isn't even going out with whimper. They're just on life support until the money runs out and they can't afford the oxygen anymore. Sad. Sad that wrestling just lost a place where 20-30 talented (or mostly talented) people can get decent exposure, regardless of the morons running the place. As much as I HATED the product, I at least followed the talent they had, even if I have no memory of their booking decisions and storylines.
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Mad Dog
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The problem is its become a toy for Dixie Carter. If you look at the situation the company is in right now it's because of shot she's done. I bet they easily could still be on Spike TV and chugging along had she not been an idiot.
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SamoaRowe
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I don't really see TNA as much of a platform since it left Spike TV. It annoys me to see Trevor Lee in TNA rather than trying to get into NXT through EVOLVE.
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The Swigg Lebowski
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I've tried to tune in recently, but all I see is more of the same. They've turned Josh Matthews into a crappy commentator, give away high card positions to meatheads who can't work, and still can't figure out a good audio mix or lighting setup. Also, they forget that wrestling is the product, and everything around it is setup.

It reminds me of all the local craptactularv indies I've worked for, that think that because WWE does it a specific way, that it HAS to be done that way. It's really sad, because after watching NWA on the Network, and NJPW on AXS, I would KILL for a decent wrestling focused show that wasn't high on backstage segments and long monologues in the ring.

The only thing that's actually kept me watching during an episode of Impact recently was Al Snow. His gimmick actually works, and works well. But instead of more of something like that, I have to watch Matt Hardy and his wife stand in the ring and yell at Jeff Hardy. When they are basically the same gimmicks as they have been for the past 20 years.
Scrooge McSuck
 
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SamoaRowe
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Sinclair might buy TNA. If that happens, it'll be hilarious poetic justice. The ultimate #LOLTNA would be them getting bought out by Ring of Honor (not really, I know, but it still makes me laugh).
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Mad Dog
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I find that hard to believe considering how cheap Sinclair is.
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SamoaRowe
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Mad Dog,May 2 2016
01:19 PM
I find that hard to believe considering how cheap Sinclair is.

Hey, TNA can't be worth much :lol: Might be a good investment for the timeslot on Pop TV and the video library (not to mention the production equipment).
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Scrooge McSuck
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I've heard a 30-second commercial during TNA cost $335. I could afford to advertise for them. :P
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SamoaRowe
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Scrooge McSuck,May 2 2016
02:07 PM
I've heard a 30-second commercial during TNA cost $335. I could afford to advertise for them. :P

We should pool our money together and advertise da site B)
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Mad Dog
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No but they don't even want to invest a few 100k in what they have. I just don't see them spending 5-10 in million on TNA. And Dixie Carter is a retard.
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