Vince McMahon putting insane amount of money into XFL
Vince McMahon is committed to not repeating his mistakes with the XFL in the professional football league’s second go-around, and the financial commitment he is making proves that more than anything.
Rumors first surfaced that the XFL was making a comeback when McMahon sold $100 million of his WWE stock. That’s a sizable amount of money in itself, but XFL CEO and commissioner Oliver Luck told ESPN’s Darren Rovell that it only represents a fraction of the investment McMahon plans to make.
“People were focused on the $100 million, but the truth is that doesn’t even get us to the 20-yard line,” Luck said.
That math apparently is not an exaggeration, as Rovell notes that McMahon has told insiders with the XFL that he expects to spend somewhere in the neighborhood of $500 million.
So where is all the money going? Player salaries will be a lot higher in the XFL’s second attempt at success, as Luck says the average will be around $75,000, with players in higher demand making much more. Back in 2001, the XFL paid players an average of about $45,000 for the 10-game season. Another costly expense will be an insurance policy to cover player injuries.
“I’ve been at all levels of football and the importance of a broad-based insurance program cannot be understated,” Luck said. “There are very few participants who underwrite for this market anymore and it is obviously costly.”
Luck said the insurance policy is expected to cost more than $10 million per season. What he did not mention is his own salary, which will reportedly be nothing to scoff at.
There’s no questioning that McMahon is a smart businessman, as his success with the WWE is the primary reason he has an estimated net worth of around $3 billion. Some think he’s crazy for not learning his lesson when the XFL failed the first time, but McMahon’s financial commitment is an indication of how determined he is.