WWE Releases Six Wrestlers

Over the past week, the WWE has released Super Crazy, Paul London, Chuck Palumbo, Kenny Dykstra, Elijah Burke, and Lena Yada. While it is possible that these moves were a part of a housecleaning that the WWE does periodically, there may be more to these cuts than just business as usual.

In related news that doesn't seem to be a coincidence, the WWE also released their third quarter earnings last week. While there was a slight increase in revenues, net income decreased by over 40% in the third quarter when compared to last year's third quarter. That was due to increased spending by the company which has been a knock against the company by Wall Street analysts. During last quarter's earnings conference call, a caller accused the company of spending money like "drunken sailors".

It will be interesting to see if the WWE cuts more wrestlers in the near future. With the current global economic problems, the WWE as well as every other entertainment company, has to be concerned about the possibility of decreased revenues. From a business standpoint, getting rid of a few contracts for performers that aren't featured on TV is a good business decision. If they want to cut costs, they found an easy way to do it that will not impact their television shows. They have also allowed some flexibility to their budget if they wanted to go out and sign a big name free agent wrestler. I'll discuss that possibility on Friday because I don't want to spoil Thursday night's edition of TNA:iMPACT!.

Update 1: Click here to find out who the big free agent is.

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