AEW accused of overpaying talents and ruining the industry

Swerve Strickland recently signed a contract extension with AEW. While the value of his new contract hasn't been made public, it's expected that he's receiving a significant pay raise after becoming one of the star talents on the roster. Daniel Garcia is another young talent who has reportedly been offered a new deal with Tony Khan's company.

In the latest edition of the "Wrestling Observer Newsletter," Dave Meltzer reported that someone within WWE was less than impressed with AEW's spending habits. They believe that whatever Khan offered to Garcia and Strickland was over the odds and could have a negative impact on the industry.

“The (Strickland) deal, and the offer to Daniel Garcia, were told to us by someone on the WWE side for Garcia and more than one on Strickland, as being bad for the sport because they are so far over what would WWE would perceive the market value for both to be, with the idea he’s spending more than he needs to and raising salaries," Meltzer wrote. "The reality is WWE can afford anything. Even if the new TV deal is high, AEW still has to spend with some caution or the idea they’ll be so profitable than will erase the first six years of losses won’t be the case if they get out of control on spending.”

Wrestlers have been notoriously underpaid for years. AEW's emergence as a legitimate competitor to WWE , where wrestlers can sign and earn a comparable wage, has helped level the free-agency playing field. However, the flip side is that wrestlers now have more bargaining power, meaning they can negotiate fairer salaries.

It's fair to question the sustainability of AEW's spending habits, primarily as they deal with a downturn in interest, attendance and viewership. Nevertheless, scolding them for fairly paying for their talents is disingenuous. Strickland has proven himself to be one of the best wrestlers in the world, and ensuring that his payscale matches his production is a positive step forward for the wrestling industry.

Of course, it makes sense for WWE to be frustrated. With talent now holding some leverage, both companies must open their checkbooks when negotiating new deals. Still, a fairly paid workforce is a happy workforce, and AEW has done nothing wrong by creating better standards for wrestlers around the world.