How is it that WCW can lose millions of dollars ?
WCW signed many of their wrestlers to huge guaranteed money contracts that had to be paid out, no matter how business was. The expenses of the shows, which include everything from TV production expenses, to special effects, to all the cars they destroyed, right down to catering, is huge. When the company was doing well in terms of attendance, PPV buyrates, ad revenue and merchandise sales, they were fine. When their business dwindled, they were still operating as they did when they were prosperous, with the same expenses. As a result, their losses piled up, creating the debt they have now.
