TCW: A Sleeping Giant

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Backstory

 

TAX HAVENS AND HEADLOCKS: THE WORLD OF PROFESSIONAL WRESTLING DRAWN INTO CORPORATE TAX AVOIDANCE SCANDAL

 

The world of professional wrestling has been drawn into the ongoing issue of corporate tax avoidance. The second largest professional wrestling organization – Total Championship Wrestling (TCW) is facing criminal investigations and calls to pay more tax, similar to those faced by large multinationals such as Google and Starbucks.

 

This is following the revelation that tax officials have visited TCW headquarters in relation to a $4.5 million tax bill.

 

In response to rumors, the company has denied that tax authorities planned to freeze bank assets in pursuit of the money. However, officials have admitted that Tommy Cornell has stood down and will be replaced as Chairman of the Board when it next meets this morning.

 

Tommy Cornell: Facing Some Rough Justice

 

The $4.5 million tax bill recently came to light after a number of key backers pulled out with due diligence exercises resulting in legal teams reporting TCW to tax authorities.

 

This leaves Tommy Cornell as the majority shareholder of TCW Inc. with his company liable for any potential tax liabilities.

 

Seen as one of the best and hardest working stars of the professional wrestling world, the man has become synonymous with TCW; having led the company for over a decade, become TCW World Champion six times and participating in some of the professions most famous matches and storylines.

 

However, as the man who led the takeover of TCW in 2004, and the adoption of the controversial Employee Benefit Trust, Tommy Cornell’s shoe-in a member of the wrestling industries Hall of Immortals could potentially be in tatters.

 

TCW: Surviving Not Thriving

 

“He is an amazing wrestler, who has done some legendary things – by taking it [TCW] on Tommy has saved the wrestling industry” says Rip Chord, retired wrestler and owner of Mid Atlantic Wrestling “but it’s clear he’s overstretched himself by taking on TCW, he’s had some bad advice, and whilst TCW has ensured that there is much needed competition within the Wrestling industry. It’s companies round about TCW that have benefited, not TCW”.

 

Rip Chord’s comments run true. North America’s fastest growing professional wrestling business USPW (United States Pro Wrestling), if it maintains it’s current momentum is set to eclipse TCW as the number two professional wrestling organization in north America, whilst many pundits predicting that the world’s number one wrestling business (Supreme Wrestling Federation) is making plans to enter the mainstream sports and entertainment industries on an international basis.

 

Meanwhile, TCW has gained no ground, failed to increase its marketplace and lost a succession of stars to rival businesses, retirement and sheer loss of interest in the wrestling business.

 

New Sheriff In Town: Brodie Law

 

This isn’t the first crisis to hit TCW – over the years it has tried to increase its market share through rebranding, repositioning and redeveloping storylines and characters – with little success. However, many critics have highlighted that the appointment of Brodie Law as the interim TCW Chairperson is bold step, one which TCW could really benefit from.

 

A television executive, Brodie is credited with coming up with the “Who Wants to Be A Billionaire?” franchise and bring “Celebrity Jungle Challenge” to the US television market. Whilst TCW wrestling stars appear to be unhappy about being led by someone who has no history with the professional wrestling industry, internal sources say that TCW board members are excited about working with him.

 

“Brodie is the flip side of Tommy Cornell’s coin” says one internal source. Whilst Tommy Cornell is highly respected within the wrestling industry, many outwith the industry are growing weary of him. “When he approached GNN several years ago he promised a product that would bring the channel into the mainstream and support the channel make their transition to entertainment channel. As a result of TCW’s poor performance neither of these things happened – it’s a surprise that GNN still broadcast the TCW product”.

 

Whilst Brodie Law has still to win over those within TCW his track record in television production has the rump of existing investors interested, “Brodie has a talent for spotting something that is going to be big, it’s a massive coupe that he’s come on board with TCW – it gives us prestige straight away” says our internal source. ‘His initial discussions with the TCW Board have been difficult, but he seems to have gotten much of what he wants – much of it will be very hard to swallow”.

 

However, it seems that Brodie has failed to get complete control of the TCW product. “Whilst Tommy Cornell has stood down as chairperson, he is still the majority shareholder and very involved in the product. Brodie and Tommy have yet to sit down in the same room let alone discuss TCW. No-one knows how it’ll go.”

 

It is clear that Tommy Cornell is keen to make a success of TCW – over the years he has proven that he will listen to new ideas, adapt where necessary and help build new stars, however many highlight that he can still be very stubborn “TCW’s performance as a company has been stubbornly static over the years, Tommy Cornell’s attitude to ideas that aren’t his have been stubbornly static over the years – anyone with a brain can see the coloration!” says one Rip Chord.