(Bloomberg) -- World Wrestling Entertainment Inc. shares slipped as much as 2.9 percent after comedian John Oliver criticized the company and Chairman and CEO Vincent McMahon's treatment of wrestlers.
Wrestlers are dying at a faster rate than professional football players and the general population, Oliver told viewers, citing FiveThirtyEight data. He noted WWE's policy of treating wrestlers as independent contractors and not providing health insurance.
Adding to WWE woes, Cannonball Research analyst Vasily Karasyov cut his investment rating to neutral from buy, writing that the company would have to trade above historic multiples or double international TV rights rates in order to surpass his 12-month price target of $88. And last week, McMahon sold 3.2 million A shares to fund other investments including Alpha Entertainment and the launch of a professional football league, the XFL, in 2020.
WWE said in an emailed statement “John Oliver simply ignored the facts,” without providing details. The company said it has “longstanding Talent Wellness program.” According to the WWE website, the program provides wrestlers a yearly physical and drug testing.
For more on McMahon's XFL venture
To contact the reporter on this story: Cristin Flanagan in New York at cflanagan1@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Brad Olesen
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