WWE has qualified for a significant tax credit for hosting WrestleMania 42 in Las Vegas, Nevada.
Brandon Thurston of POST Wrestling posted an extensive report, which states that WWE has received approval for around $4,314,821 in tax credits for hosting WrestleMania 42 and related events in Las Vegas. The records were made public by the agency that approves such applications.
The tax credit is based on WWE’s expected production cost for the events, which is reportedly more than $35 million. It is slightly more than the $4,240,456 approved for the promotion last year, as WrestleMania 41 took place at the same venue, Allegiant Stadium.
WWE had submitted an application to the Nevada Governor’s Office of Economic Development (GOED), stating that the total budget for producing both nights of WrestleMania 42, along with RAW and SmackDown at T-Mobile Arena, amounts to $35,577,015, which is higher than last year’s $33,693,464.
GOED Director of Communications Carli Smith confirmed to POST Wrestling that they accepted WWE’s application. An audit process is involved, and the above-mentioned qualifying amount is the maximum the promotion will receive.
“Their actual tax credit amount will be determined by an independent audit based on their actual spend,” Smith said, “but it cannot be more than the $4,314,821.”
The GOED allowed WWE to redact the stadium fee and talent budget from the public record of their application. The agency had also accepted the promotion’s request to seal a required script, withholding it under an exception as proprietary information.
However, WWE did not include the Hall of Fame ceremony and Tony Hinchcliffe’s special WrestleMania edition of his podcast, both of which will take place at the Dolby Live theater, in the documents.
UFC had also made a similar application as WWE’s
The UFC, which also falls under the TKO banner with WWE, made a similar application for a projected $450,255 in tax credits for The Ultimate Fighter Season 34. As the company had mentioned, filming at the UFC Apex is scheduled to take place from April to May, with a budget of $3,762,527 for the season.
WWE claimed in the application that WrestleMania weekend delivers more than $200 million in annual economic impact to the cities that host the event. The number is based on the promotion’s spending on “arenas, per diem and hotels for freelancers, talent and production staff, as well as visitors’ spending on food and other entertainment in the city.”
The report also notes that subsidies, which allow WWE to offset millions in expenses, could be a significant factor in the promotion’s decision to host the event in Las Vegas for the second consecutive year.
The promotion also received additional benefits other than tax credits last year
Apart from the tax credits, WWE received a $5 million site fee from the Las Vegas Convention and Visitors Authority (LVCVA), a government entity that promotes tourism. However, the value of this year’s site fee is unknown.
The agency hasn’t responded to Brandon Thurston’s request to learn the value of the site fee, and Thurston’s petition with the Nevada district court against the LVCVA, to have the agency release the numbers, is still pending.
POST Wrestling reported earlier this year that WWE WrestleMania 41 turned out to be the most profitable event in pro wrestling history, drawing $66 million in combined ticket sales revenue.
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