On a special tribute episode of “Talk Is Jericho,” veteran wrestling journalist Dave Meltzer detailed the specifics of Hulk Hogan’s groundbreaking and incredibly lucrative contract with World Championship Wrestling (WCW). The deal, signed in 1994, gave Hogan an unprecedented percentage of the company’s live event and pay-per-view revenue.
An “Incredible” Offer
Meltzer explained that the primary reason Hogan left WWE for WCW in 1994 was a contract that was “too good” to turn down. He then detailed the staggering percentages Hogan was set to receive. “When he first signed… the nature of the deal, and the percentages, you know, which 25% of the live gate, 25% of the pay per view,” Meltzer stated. “And then guarantees of 25,000 households… in the end, it was like, I think guaranteed $675,000 for a pay per view appearance.”
A Smart Bet, At First
While the numbers were shocking to many in the industry at the time, Meltzer said the deal initially paid off for WCW. “I remember when we first heard the nature of the contract, and at first it was kind of like, how can they make money with it? And they did,” he explained. “They did because WCW did grow because of him. So it was not a bad deal. At first… I would say early ’99, you know, he did pay for himself.”
An Unsustainable Deal
However, as the company’s fortunes began to decline in 1999 and 2000, the contract became an albatross. “By 2000 when the company was going down, they could not afford that deal,” Meltzer said. “So they wouldn’t put him on TV because he wasn’t worth the 25 grand and everything. And their pay per views, they would not put him on because he wasn’t worth it anymore.”
Merchandise Royalties
The contract also included a massive cut of merchandise sales. Mark Madden confirmed that Hogan received a huge percentage of all nWo shirt sales, a deal so favorable that he believes “the company [didn’t] show a profit from those T-shirts.” Host Chris Jericho then shared a famous story about how his first-ever action figure, which was a two-pack with Dean Malenko, rang up at the register as a “Hulk Hogan and Sting” two-pack. “So even though she bought a Chris Jericho, Hulk Hogan’s name came up… he got the residuals from it,” Jericho said.
Hulk Hogan’s WCW contract is a legendary piece of wrestling business history, a deal that helped propel the company to its greatest heights but also contributed to its financial issues in its final years. The full, in-depth discussion can be heard on the “Talk Is Jericho” podcast.
If you use any portion of the quotes from this article please credit Talk Is Jericho with a h/t to WrestlingNews.co for the transcription.
