After a big opening weekend, many investors are wondering if XFL stock is coming soon. The newest competitor to the NFL drew in very solid TV ratings in its first week. This includes millions of viewers for its opening game in the nation’s capital.
Currently, the league is privately owned by Vince McMahon’s Alpha Entertainment LLC. The well-known WWE owner is looking to take advantage of the public’s desire for more football once the NFL season ends.
Is XFL Stock Coming in the Future?
It’s hard to say if the XFL will eventually hit the stock market. Vince McMahon himself invested $123 million to get the league back into action. He then sold $272 million in WWE stock to fund the relaunch even further.
A lot of the XFL’s market potential will depend on the success of the first season. If week one is a great indicator, then the league is heading in the right direction.
According to ESPN, the reborn XFL brought in an average of 3.3 million viewers for their kickoff game on ABC. The viewership peaked at 4 million with its biggest markets being Seattle, Cleveland, Columbus and Kansas City.
For perspective, Major League Soccer only averaged 823,000 viewers for its championship game in 2019. That’s for the final of a league that has been operating since 1996, not a regular season matchup of a startup.
While football is much more popular than soccer in America, these numbers are still encouraging. If Vince McMahon grows the league similarly to the WWE, then going public with XFL stock is certainly possible.
What Happened to the Original XFL?
Owner Vince McMahon is no stranger to football. He originally founded the XFL in 2001. However, the league lasted only one season due to poor viewership. This alone caused NBC to pull out of its broadcast contract, forcing the XFL to cease operations.
However, the league was much different than it is now. It was built around being the opposite of the NFL. It was going to be rougher, less filtered and with completely different rules.
The new XFL is heading in a completely different direction. Instead of being rougher, they are actually providing more safety features. For example, the XFL changed kickoff rules to eliminate the chances of more severe collisions between players.
They are also speeding up the pace of play. This means less commercials and quicker games that don’t run on and on.
Its biggest change is the access to players, coaches and officials. During a broadcast, you will get to hear the coaches make play calls and listen in to any reviews. Moreover, you get to hear interviews with players right as they come off the field. The XFL even had camera crews in the locker rooms during half time speeches.
This unique access to the league has resonated with fans. The first week’s numbers tell the story.
Will the XFL Affect WWE Stock?
Days before XFL opening weekend, World Wrestling Entertainment (NYSE: WWE) dropped 15.5 percent to $41.51 a share. Since the XFL relaunch, …read more
Source:: Investment You