IWA Championship Wrestling

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Wrestling Entertainment Business Plan

Market Analysis Summary

IWA will direct its efforts to the production of family-oriented television programming and live events, procuring sponsorships, television advertising, and merchandising deals all designed to firmly carve our niche as the #3 professional wrestling organization in the industry, both domestically and worldwide.

Geographically, the company will initially direct its efforts in two key areas: domestic syndication of its weekly television programming and live event tours both throughout the continental United States and internationally, via syndication of its weekly television programming and sold live event tours working with established agents and promoters worldwide.

IWA management believes its decisions to use established name talent in a family-oriented format will ensure maximum mass appeal, maximum ratings, and maximum profits, all designed to firmly entrench the IWA into a solid #3 position within the industry, while also carving out a financial piece of the lucrative pro wrestling revenue pie projected to be a minimum of 10% of revenues projected by the current #2 organization (WCW), or approximately $35 million within the first 3 years.

Because of our extensive experience on the highest levels of the pro wrestling industry, we have the ability to produce quality television programming at rates well below that of our competitors, attract the top available "name" stars to work with us, and attract the best, new young talent in the industry to develop future stars.

Professional wrestling is the hottest sports entertainment available on television and at live events throughout the country. TV Guide estimates that 35 million people watch professional wrestling from the WWF, WCW, and ECW on television each and every week, and millions more flock to the arenas to see the live events with ticket prices of up to $35 each.

Pro wrestling has always used television as its base of exposure and popularity. During the entire decade of the '90s there were only a handful of professional wrestling organizations to secure nationally syndicate television contracts. The IWA did it TWICE!

With the proper financial backing to sustain the production and distribution of IWA television programming, it is a well-founded conclusion, based on our track record and experience, that the #3 position within the industry is a realistic and achievable goal for IWA.

4.1 Market Segmentation

Professional wrestling is true family entertainment. The following chart and table contain interesting facts about pro wrestling fans, based on Scarborough Research:

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
White Collar Family Oriented Vewers 20% 6,880,000 8,256,000 9,907,200 11,888,640 14,266,368 20.00%
White Collar Non Family Oriented Viewers 25% 9,820,000 12,275,000 15,343,750 19,179,688 23,974,610 25.00%
Blue Collar Family Oriented Viewers 23% 5,460,000 6,715,800 8,260,434 10,160,334 12,497,211 23.00%
Blue Collar Non Family Oriented Viewers 30% 13,000,000 16,900,000 21,970,000 28,561,000 37,129,300 30.00%
Total 25.73% 35,160,000 44,146,800 55,481,384 69,789,662 87,867,489 25.73%

4.2 Target Market Segment Strategy

As previously mentioned, the IWA plans to approach the marketplace primarily through family-oriented programming and live events riding the wave of the popularity of professional wrestling today. The key target is the nationwide and international distribution of our weekly, one-hour television program.

Parents who are concerned with the excessive violence, nudity, vulgarity, and general disrespect for women, minorities, and authority will embrace the IWA as the true alternative in the world of professional sports entertainment. They will not be concerned when their children sit down to watch our programming or buy our souvenir merchandise. In fact, mom and dad will gladly buy tickets for the entire family to attend our live events when we appear in their hometown.

The increase in the popularity of professional wrestling continues despite the fact that the top current organizations have little or no regard for family values. Thus, it is the IWA belief that they are minimizing their potential success by comparison with the IWA plan to appeal directly to family values, family-oriented programming, and live events and, thus, a greater majority of the population.

It is only logical that if we succeed in our target market strategy our product and services will be even more widely accepted and received than that of our competitors over a period of time. The exact amount of time involved is directly related to the extent of our television exposure domestically and internationally. We anticipate a maximum of 3 years to find the IWA well established with the target market and firmly entrenched as the #3 professional wrestling organization in the industry.

4.3 Service Business Analysis

As previously stated, the popularity of professional wrestling is at an all-time high with the top two organizations in the industry currently dominating the weekly cable television ratings and grossing almost $1 billion between them in annual revenues. This trend is likely to sustain itself due to the fact that 35 million people watch it every week on television, and millions more turn out to attend live events.

In fact, demand for American style professional wrestling has now spread worldwide. The IWA has already received interested inquiries for tours and television proposals from Australia, Great Britain, Scandinavia, Russia, Israel, and the entire Pacific Rim from legitimate agents and promoters wanting to represent and promote the IWA there.

Rob Russen, founder of the IWA has a clear and realistic vision of what it will take to achieve IWA goals and ambitions to become the #3 wrestling organization in the world. He has the experience, expertise, and the contacts to make it reality.

4.3.1 Competition and Buying Patterns

Competition within the upper echelon of professional wrestling is clearly established, easily identified, and very limited.

The World Wrestling Federation (WWF) - For nearly four decades this family-owned promotion has been tops in the industry. TV Guide projects the WWF will earn $550 million this year. In March, 2000, the WWF went public and raised $250 million. The WWF continues to dominate cable TV ratings, pay-per-view buy rates, and merchandise sales by constantly developing their stable of stars through their television exposure. It is a simple formula that has worked consistently over the years as the WWF has made the transition from the "Nature Boy" Buddy Rodgers era to the Bruno Sammartino era to the Bob Backlund era to the Sgt. Slaughter era to the Hulk Hogan era to the current era of The Rock, Cactus Jack, and HHH. It has been said that the WWF "made more than 15 millionaires" from their roster in 1999.

World Championship Wrestling (WCW) - Approximately 15 years ago Ted Turner bought the NWA/WCW from Jim Crocket for $3.5 million to provide inexpensive television programming for his growing cable empire. Many thought, at the time, that Crocket had made out like a bandit and that Turner had overpaid for a regional wrestling organization with an aged talent roster and limited appeal.

In the year 2000, according to TV Guide, WCW will earn approximately $350 million or exactly ONE HUNDRED times the amount that Turner paid to buy the group 15 years ago. WCW now has the biggest and most extensive talent roster in the industry including former WWF superstars Hulk Hogan, "Macho Man" Randy Savage, Bret "The Hit Man" Hart as well as home grown stars like Sting, Lex Lugar, Diamond Dallas Page, and Goldberg to name a few.

WCW has the highest paid roster of "guaranteed" contracts in the industry and thus, the highest talent costs as well. Unfortunately for WCW, after a period of about 18 months when they actually overtook the WWF in the ratings war, mismanagement, overspending on talent costs, and poor story lines has caused WCW to drop dramatically in the ratings to the point where they are a distant second to the WWF, and could be vulnerable to a strong #3 competition if and when it appears.

Extreme Championship Wrestling (ECW) - Paul E. Dangerously, head of ECW, was given his first managerial duties and TV exposure in pro wrestling by IWA founder Rob Russen in 1985. Dangerously has found his niche in pro wrestling in the form of the "hardcore" or "extreme" fan who seeks high risk maneuvers, blood, guts, fire, smashed tables, flashed breasts, and vulgarity. The very nature of ECW limits its appeal to what Jim Liberatore, GM of the Sunshine Network, calls a base following made up of "skin heads and neo-Nazi's" ... hardly an ideal target market for any reasonable sponsor or advertiser.