AEW closing in on significant rights deal with Warner Bros. Discovery

AEW has been involved in lengthy negotiations over its future TV rights deal. Despite declining attendance and shrinking viewership on television, Tony Khan's product still regularly competes for a top spot during its time slot. As such, the company has retained significant negotiating power.

According to a report from John Ourand at Puck , Khan is closing in on a $170 million-per-year deal with Warner Bros. Discovery. The agreement is set to span three years with an option of a fourth. Fightful Select has also corroborated the report.

"John Ourand at Puck reports AEW's new media deal with WBD 'looks like' it will be a 4-year deal: 3 years guaranteed with a 1-year option," Fightful Select reported. "Ourand says $170M per year 'is apparently in the ballpark'...He says AEW is pitching an additional package to broadcast networks...Contacts we've spoken to close to the situation claim that this information does reflect the truth and the deal is being closed in on. We do not have a date in which the deal will be announced."

AEW will likely be looking for a separate rights deal for its pay-per-view schedule and could potentially also shop Ring of Honor on a third deal with a different provider.

"We've not heard of any talks regarding ROH, but that's not to say those conversations haven't happened," Fightful Select continued. "Although AEW's figures aren't publicly known, a TV deal of this size would make them profitable."

As such, it would appear Khan's company is getting set for a significant cash flow increase, which could help offset the heavy spending on talent over the past 12 months. Recently, the company was accused of overpaying talents following contract extensions for Swerve Strickland and Daniel Garcia, with both talents having drawn interest from WWE.

"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," Dave Meltzer wrote in a recent Wrestling Observer Newsletter. "The reality is WWE can afford anything. Even if the new TV deal is high, AEW still has to spend with some caution."

Once the deal is signed off, any notion of AEW's immediate future being in doubt should quickly fade away. However, Khan and the creative department must address the declining interest in his product. If the company is going to continue getting significant TV deals, it must grow its fan base and begin drawing in casual viewers. That means adapting the overall approach and toning down the violence during pay-per-views.

Three years is a short time. AEW must continue proving itself and earning more of the market share; otherwise, it may not have the same negotiating power next time it's time to negotiate a rights deal.