Speaking on a recent edition of his personal podcast, Eric Bischoff commented on the potential sale of TNA Wrestling and described the situation as “sheer chaos”.
“Chaos. Sheer chaos. I have been reading it like everyone else. I don’t have any inside information. I have to give my disclaimer here: I am currently involved in on-going litigation with TNA. I have to be a little bit judicious and careful about what I say. Anything that I am commenting on are things that are in the public domain, so to speak.
The other day I read that somebody put a valuation on TNA of approximately $40 million. I have no idea where that number came from. Valuations when you’re selling a company or trying to get investors or an investor company. One of the hardest things to determine is valuation. Back when I was running WCW, when I was first given the responsibility to oversee WCW, it was a company that was grossing $24 million a year. Unfortunately it was losing $10 million in the process.
Earlier this week someone said, ‘Well, the valuation of TNA is probably two times revenue.’ Well, that valuation works if you’re profitable but if you’re losing like WCW was, $10 or $14 million a year on $24 million a year in revenue, I guarantee you that company would not have been valued at $40 million.”
The podcast is available in full at this link.