Breaking Down How WWE Contracts Work (2024)

WWE superstar and former UFC Heavyweight champ Brock Lesnar made headline news this week when he announced his retirement from the octagon. And Lesnar went even further than that, revealing that he'd signed a new contract with WWE. The move immediately clears what was a hazy future for Lesnar in pro wrestling, and it even managed to swing the betting line on his championship match with Roman Reigns at Sunday's WrestleMania.

But while we know Lesnar has a new deal, precious few details are available. Internet rumors say it's a three-year contract, but the internet is full of wrestling "news" and rumors that are notoriously unreliable. The truth is that the details of very few WWE booking contracts have become publicly available.

Over the years ahandful of such contracts havebecome public information, either through lawsuits involving WWE or through the company's SEC filings(most of which have bee helpfully compiledhere).We've pored overabout a dozenbooking contracts, ranging from Ultimate Warrior's 1987 deal through Stephanie McMahon's 2013 contract. Others include Owen Hart (1996), Raven (2000), Brock Lesnar (2003) and Triple H (2012). A review of these documents shows that the contract structure and language has remained remarkably consistent over the last 25 years or so, though there are some key differences in places.

Using the available documentsas a guide, I've put together the following, andadmittedly lengthy,section-by-section breakdown of how WWE contracts operate. One thing not covered in detail here is wrestler payment. That area is itself particularly tricky, and so we've dedicated a separate post to discussing the topic.That can be found at the below link:

How Much Do WWE Wrestlers Get Paid?

To start, all of the available contracts begin with the same basic premises, establishing that WWE is a licensed wrestling promotion with worldwide operations that can afford a wrestler, who is him/herself duly licensed, the opportunity to perform and gain public exposure. After that introduction are 14 sections, as described below.

The first section is Booking, in which the wrestler grants WWE the rights to book him/her for events, forwhich WWE can also sell tickets and TV broadcast rights.Wrestlers also grant WWE the right to negotiate on their behalf for merchandising and publishing opportunities, in addition to endorsem*nts, personal appearancesandperformances in non-wrestling events.

More recent contracts have added more specific language. Raven's 2000 deal includes language granting WWE the right to assign him to specific WWE-affiliated territories, like Ohio Valley Wrestling and Memphis Championship Wrestling. Similar language appears in Mike Sanders' 2001 and Chris Kanyon's 2002 deals; in fact, Sanders spent his entire WWE career in the Heartland Wrestling Association. Stephanie McMahon's 2013 contract includes a detailed list of the sorts of non-wrestling appearances WWE can book her for; it includes photo shoots, autograph signings and product endorsem*nts.

The final clause in this section provides that WWE will endeavor to book the wrestler in matches at various events. The language here is nearly identical across the board. All three of the available Ultimate Warrior contracts (1987, 1992 and 1996) guarantee he would be booked for at least ten events per year, but none of the other available documents list such a minimum guarantee in this section.

An added clause exists in Ultimate Warrior's 1996 contract and, as will become clear throughout this story, that deal is unique in several ways. Its Bookingsection includes a clause 1.3that obligatesWarrior to work a minimum 14 days per month; 12 of those days are allocated to wrestling services at live events, while the other two are reserved for taping "cable and syndicated programming." As detailed in our story on wrestler pay, he was also entitled to $2,500 for eachday worked beyond the 14 per month. Finally, the clause says that Warrior and WWE would later plan the dates of a "Warrior World Tour." I haven't been able to track down any further information on whether such a world tour ever happened.

Section two is Works, though it's labeled as Programs in the oldest available documents. This section is mostly standard language, and it grants to WWE the rights to film and photograph wrestling events, and to use and disseminate that footage in perpetuity. The section also details that any wrestler appearances or performances are considered work for hire. Thus WWE owns any rights derived from events and programs, specifically including "incidents, dialogue, characters, actions, routines, ideas, gags, costumes..." and so on and so forth.

The next section is Intellectual Property. This covers some of the ground already mentioned in the previous section, but specifically entitles WWE to the rights to a wrestler's ring name, likeness, personality, character, caricatures, costumes, gestures and even legal name during the term of a booking contract.

The majority ofcontracts also differentiate between Wrestler IPand New IP. The former includes rights that will revert back to the performer upon completion of his/her contract (or, if necessary, the stated sell off period). Though those rights return to the performer,WWE and its sub licensees maintain the rights to use footage from a wrestler's tenure. New IP, or trademarks and other propertiesdeveloped by WWE during a wrestler's term of employment, are retained by WWE in perpetuity.

The specific propertiesprotected as WrestlerIP are included within a contract attachment, and they are usuallylimited to a wrestler's legal name. The two main exceptions are when a wrestler's legal name and ring name are one in the same (think Brock Lesnar or John Cena), or when awrestler brings with him/her a ring name and character. Scott Levy, for instance, began using the ringname Raven in ECW in the mid-1990s, and that name was included in his WrestlerIP when he returned to the then-WWF in 2000.Below are a handful of wrestlers and what specific trademarks are listed in each category within their booking contracts.

Not included in the above table is Stephanie McMahon, who has both that name and "Stephanie McMahon-Levesque" protected as WrestlerIP. Listed as New IP are "The Alliance," "Boss Lady" and "The Billion Dollar/Billionaire Princess." Specific properties listed as New IP are not exhaustive.

And there's another interesting clause found here inUltimate Warrior's 1996 contract, which changed the "Ultimate Warrior" name from New IP to WrestlerIP, grantingperformer JimHellwigthe rightsto the character and ring name upon his departure from the company.

Merchandising is the fourth section, and for the majority of available contracts is a simple two-clause section that grants WWE the rights to use wrestlers' IP in the manufacture and sale of merchandise. These rights are exclusive to WWE.

There are some exceptions, however. First, as should no longer be a surprise, is Ultimate Warrior's 1996 deal. That Merchandising section includes a third clause that notes Hellwig was involved in the publication of a comic book series that incorporated the Ultimate Warrior name. In return for Hellwig being granted the rights to the Ultimate Warrior name as WrestlerIP, as noted above, WWE was granted a royalty of 12% of the comic book's gross profits.

The other "exception" is simply language in the most recent agreements thatis now standard in current WWE contracts. Both Triple H and Stephanie McMahon's contracts have fourclauses that cover a Sell Off Period - upon contract termination or expiration, WWE maintains theright to sell licensed products in inventory over the next 90 days - and Book Rights, Publishing Rights and Auction Sale Rights. The latter three reflect the many areas that WWE's business has expanded to in recent years.

Next is Exclusivity. This clarifies that all rights granted to WWE are exclusive to the promoter, and that if the wrestler wishes to use either WrestlerIP or New IP in a separate endeavor then he or she mustbe granted those rights in a sub-license arrangement. All of the available contracts signed from 2000 onward also state that wrestlers are responsible for reimbursing WWE for administrative costs associated with such separate projects, provided that WWE's costs aren't less than 10% of fees received by the wrestler.

The sixth section is Term and Territory. This is straightforward, naming the contract length. In theavailable documentsthese rangefrom Sanders' one-year deal to Lesnar's seven-year contract, though WWE's most recent annual report says the company has contracts up to 20 years in length. Some of the available deals also include automatic one-year renewals. As for territory, that might be the simplest sentence in WWE's legalese: "The territory of this Agreement shall be the world."

And finally we get to fun stuff - section seven is Payments and Royalties. As mentioned above, WWE's payment structure is prettycomplex. Booking contractstypicallygrant performers a base salary plus a share of other revenue streams like merchandise sales and gate receipts. Wrestlers on WWE's main roster make an average $500,000 per year, while top performers are well into the seven figures. We've put together a separatebreakdown of wrestler pay in a post that can be found at the below link:

How Much Do WWE Wrestlers Get Paid?

Following Payments and Royalties, the contracts detail the obligations of both promoter and performer.Promoter's Obligationsname the things that WWE is responsible for. These include scheduling events, obtaining necessary licensesand paying venue costs(including arena rental, security, sound and lighting equipment, liability insurance and necessary taxes)as well as expenses from the production and distribution of live telecasts.

Triple H's contract also includes a clause that states that he isnot required to perform wrestling services beyond a maximum 180 dates per year, and no more than 15 dates per month. Any performances beyond those limits must be mutually agreed upon with WWE. As noted above, Ultimate Warrior had a similar date limitation (14 days per month), but that was written into the Booking section of his contract. It's believed that Brock Lesnar's recentcontracts also include a limited scheduling clause, but his 2003 deal has no such language.

On the other end of the responsibility spectrum is the lengthyWrestler's Obligations, which has three times as many clauses as the previous section. First, wrestlers are responsible for their own training and conditioning, as well as for providing their own costumes, wardrobes, props and makeup. All such responsibilities are at the cost of the performer. Talent must also cover all costs associated with food, lodging andtravel between events,except for air travel expenses as covered by WWE'scurrent travel policy. Ground travel between events is the responsibility of talent.

In a few instances wrestlers have been granted a better travel package. Lesnar's 2003 deal entitles him to first class airfare between domestic locations and business class airfare when flying from an international location. Triple H has the same airfare clause, though he also gets to fly first class in Canada. Ultimate Warrior's 1996 contract isn't quite so specific, but notes that Hellwig is entitled to "first class flight accommodations at promoter's expense."

Beyond those basic logistical costs, wrestlers are also responsible for paying income, social security, FICA and FUTA taxes, as well as insurance coverage (general liability, worker's comp, professional liability, etc). This is standard for independent contractors, a subject that will be touched on in greater detail below.

This section also includes a wrestler's obligationto put forward his/her best efforts, and also to ensure that precautions are taken to prevent unreasonable risk of injury to other wrestlers.They must also abide by WWE's decisions regarding the exploitation of either Wrestler IP or New IP.

Clauses in this section also waive a wrestler's rights to sue in the event of injury.Wrestlers acknowledge the chanceof bodily injury and assume full responsibility - indemnifying WWE and its subsidiaries from liability - even forriskstakendue to the negligence of WWE or other wrestlers.WWE is also waived from liability for any and all damage resulting in permanent injury or death, even if caused by negligence of the promoter.These clauses are in bold and all-caps in Triple H and Stephanie McMahon's contracts.

Though this language is expected, it's particularly chilling to read in Owen Hart's contract. Hart died followinga1999 pay-per-view event at which, while preparing to descend from the arena rafters, hefell 78 feet when his harness prematurely released. His family sued WWE in the weeks following the incident and, after a lengthy court battle, received an $18 million settlement, at the time believed to be a record for a wrongful death suit.

In someof the available contracts- namely Lesnar, Triple H andStephanie McMahon's - there is also a non-compete clause included at the end of this section. Under that clause, the wrestler agrees not to work for any other wrestling or martial arts organization not owned or controlled by WWE.

Section ten is Warranty. This is a basic section that guarantees the wrestler is not under a competing contract, of sound body and mind, free from disability and in agreement withWWE's drug policy. WWE is also entitled to either suspend or terminate a wrestler's contract in the event that he/she suffers an in-ring injury and is sidelined for longer than six weeks. A few exceptions here:Chris Kanyon had an eight-week injury grace period,Hart's contract says he was to be paid for the first 90 days of a contract suspension andTriple H's contract doesn't include any language regarding time missed due to injury.

In the event that a wrestler is injured while performing, WWE pays for all medical treatment and rehab costs associated witha performer's recovery.

Following that is a section on Early Termination. There are typically three clauses here.

First, termination as a result of WWE and/or wrestler choice. The older contracts, as well as Triple H's current deal, can only be terminated early by mutual consent. As for Raven, Kanyon, Mike Sanders and Stephanie McMahon, they could have their contracts terminated by WWE provided that written notice is given 90 days in advance. Brock Lesnar's 2003 deal required that he receive six months advance written notice.

Second, a wrestler's booking contract is immediately terminated upon his/her death, with no further compensation due to his/her heirs or successors.

Third and finally, another reminder that, even the event of early contract termination, WWE maintains rights to New IP in perpetuity and can also sell any products already produced that utilize WrestlerIP.

Breach, or breach of contract, details instances when WWE is allowed to immediately suspend or terminate a wrestler's contract. The listed reasons are if a wrestler violates WWE's drug policy, is habitually late or absent, fails a physical exam, does not maintain necessary conditioning/training/performance or is unable to attain the necessarylicensing to perform.

In the event of breach of contract, wrestlers also forfeit any remaining compensation. Neither wrestler nor WWE will be liable to the other for punitive damages. And this section also typically includes aone-year non-compete clause; should a wrestler's contract be terminated for breach, he/she agrees not to perform for any other American wrestling organization for one year.

That last clause is the one thatBrock Lesnar challenged in court after he left the company in 2004following WrestleMania XX. Lesnar moved to New Japan Pro Wrestling, a move that WWE tried but failed to stop. He used the same finisher in Japan but, as noted above, WWE maintains the rights to "F-5" in perpetuity, so Lesnar was forced to rename it the Verdict. The legal battle was settled in April 2006, and Lesnar wouldn't return to WWE until sixyears later.

The penultimate section is titled Miscellaneous. And the first clause of this section is arguably the most important in the entire document. It reads, in full:

Nothing contained in this agreement shall be construed to constitute wrestler as an employee, partner or joint venturer of promoter, nor shall wrestler have any authority to bind promoter in any respect. Wrestler is an independent contractor and wrestler shall execute and hereby irrevocably appoints promoter attorney-in-fact to execute, if wrestler refuses to do so, any instruments necessary and consistent herewith to accomplish or confirm the foregoing or any and all of the rights granted to promoter herein. Promoter shall provide to wrestler copies of all documents so executed.

That wrestlers are considered independent contractors has become acontentious, if perfectly legal, issue. Former WWE wrestler Jesse Ventura told Howard Stern (as quoted byGrantland) thatthe independent contractor term is entirely inaccurate. "How are they self-employed when you're signed exclusively, you can't work for nobody else, they tell you when and where you'll work? They can totally control your life, and yet they'll call you an independent contractor."

And a legal challenge to the independent contractor clause was made by wrestlers Steve Levy (Raven), Chris Klucsarits (Kanyon) and Michael Sanders in 2008. The three sued WWE, arguing that wrestlers should be treated as employees,not independent contractors. It was a short-lived challenge. The legal battleended early the followingyear when the case was dismissed.

Also within Miscellaneous are clauses indicating that WWE is entitled to assign or transfer a wrestler's rights as the company sees fit, and that any legal claims or disputes are to be handled only in the state of Connecticut. That last clause didn'thold upin courtwhen Owen Hart's family sued WWE; the case was instead tried in Missouri, where his death occurred.

The final section of the main contract is Confidentiality. This area of the contract states that, except where mandated by law, wrestlers shall not at any point - either during or after the contract term - disclose any sensitive or confidential business information. This includes reports, business plans, sales information, story lines, scripts, ideas, costumes, accessories or any other materials. Exempted from confidential information is anything that's in the public domain, that will become generally available other than through the wrestler or that is required to be disclosed by a court of law.

And fans of wrestling are already well familiar with the importance of secrecy. Pro wrestling often blurs the line between fantasy and reality, leaving viewers to wonder what's really going on when a wrestler loses to a phantom tap outor sits on a stage and rips into his employer. This final confidentially clause simply puts into writing the basic wrestling tenant that, when it comes to what's happening behind the scene, mum's the word.

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