Former WCW Wrestler Files Lawsuit Against WWE

Source: WrestlingINC

Former WWE and WCW star Marcus “Buff” Bagwell filed a lawsuit against WWE in US District Court of Connecticut on Tuesday, according to PWInsider. Bagwell claims he is owed royalties from his matches airing on the WWE Network.

Bagwell’s suit notes that he was under contract to WWE from 1991 to 2001 after WWE purchased his contract when they bought WCW in March 2001. His WCW deal expired 4 days after WWE purchased the company. Bagwell was signed to a new deal in June 2001, for WWE’s WCW brand, but he was then released in August of that year after a bad RAW main event against Booker T on June 2nd.

The lawsuit alleges that the WWE deal “merged” with aspects of his former WCW contract that expired in March 2001, originally signed in 1998, and that the WWE contract stated: “This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and all prior understandings, negotiations and agreements are merged into this Agreement. There are no other agreements, representations, or warranties not set forth herein with respect to the subject matter hereof. . .”

Bagwell believes that WWE is bound by his June 2001 WWE contract in regards to payment of royalties for pay-per-view events and home video content. Bagwell’s suit claims that WWE has ignored the following terms from the contract. It should be noted that WCW mentions in these two paragraphs refers to WWE’s WCW brand.

PPV events: “WCW shall allocate 5% of the Net Receipts paid to WCW with respect to the direct sale by WCW of WCW Pay-Per-Views to a talent royalty pool. Thereafter, WCW shall pro-rate payment to Plaintiff and all other talent appearing in such WCW Pay-Per-Views in the same proportion as was the compensation paid to Plaintiff for his appearances in the pay-per-views to the total amount paid to all talent for their appearances on the pay-per-views.”Home video content: “The WCW Video Product is a compilation or derivative work of multiple individual WCW Pay-Per-Views in their entirety, such as a collection of videos, e.g., a WrestleMania box set, payment to Plaintiff shall be calculated as follows: 5% of the Net Receipts paid to WCW shall comprise the talent royalty pool, which shall first be pro-rated based on the number of individual videos in the compilation, and then the payment to Plaintiff for each video shall be consistent with the royalty payment to the Plaintiff at the time each individual video was first released.”

Bagwell notes that the Net Receipts mentioned above would be the gross amount received by WWE, questioning what’s allegedly owed to him as the WWE Network grossed $154.9 million in the final quarter of 2015 and they stream the old WCW pay-per-view events that he performed on. Bagwell also believes he is owed royalties from the WWE Network because language in his 2001 WWE contract said, “video cassettes, videodiscs, CD ROM, or other technology, including technology not yet created.”

Bagwell’s suit also claims that when he was released in August 2001, language in that release agreement noted that WWE was buying out all obligations from his contract, except for royalties that would be owed in the future, as determined by the contract. The release agreement also contained language that said Bagwell could not bring legal action against WWE as long as they stuck to the terms of the release agreement. Bagwell is alleging that WWE broke the agreement by not paying him royalties. The lawsuit also includes a 2016 First Quarter royalties statement sent to Bagwell by WWE, stating that they owe him no royalties. Bagwell does acknowledge that he was owed no royalties for pay-per-view or home video under his 1998 WCW deal, but he claims he’s now owed for that content because the WWE contract changed the terms.

The lawsuit also acknowledges that WWE successfully defended itself against similar allegations from Eddie Gilbert’s estate, former GWF wrestler Stevie Ray and former AWA star Doug Somers, but that those wrestlers had no contractual rights to sue the company. Bagwell says that he has the right to sue WWE because of WWE breaking the agreement.

Bagwell also says his WWE contract allows for him to have his own independent certified accountant do an audit of the books for WWE’s WCW brand. Bagwell claims he tried to have an audit done in June 2016 but was initially told it could be done in late July or early August of this year. He was then informed by WWE lawyers that there would be no audit because Bagwell’s accountant “asserted a pretextual and invalid audit request to attempt to stealthily obtain that information (WWE Network royalty audit)” and that “there is nothing to audit” because Bagwell is not paid WWE Network royalties. Because WWE blocked the audit attempt, Bagwell claims they have forfeited any claim that he did not satisfy their prerequisite actions before filing the lawsuit. The lawsuit also serves as an official dispute of WWE’s 2016 First Quarter royalties statement.

The lawsuit is set up as a class-action suit for talents facing similar situations. Talents who signed a WWE Legends deal from 2004 on are exempt from the class as terms in those deals specifically note that WWE will not pay royalties for “Internet subscriptions or video on demand fees.”

Bagwell’s suit is asking the court to prevent WWE from placing pay-per-view and non-PPV material on the Network until the class is paid royalties and that the class be paid within 90 days of the end of a financial quarter.

Bagwell is asking for a trial by jury. WWE has until November 9th to file a motion to dismiss the lawsuit but PWInsider reports that they have not been served with the lawsuit yet, as of Wednesday.

Today Is the 20th Anniversary Of Hulk Hogan Forming The NWO With Hall & Nash

Today marks the 20th anniversary of the landmark WCW Bash at the Beach pay-per-view, which saw Hulk Hogan turn heel and join Kevin Nash and Scott Hall to form the nWo.

Hogan turned from hero to villain during the July 7, 1996, pay-per-view broadcast, when he fought for nWo in the main event. “You fans can stick it, brother,” he told the audience.

The night marked a turning point in the Monday night wars, as WCW Monday Nitro would go on to beat WWE Monday Night RAW for 83 straight weeks in the ratings. You can watch the infamous angle in the video below:

Sting & The Ultimate Warrior VS Hulk Hogan & Bret Hart On WCW Nitro 12-10-98 (Video)

Sting & The Ultimate Warrior VS Hulk Hogan & Bret Hart in WCW on 12-10-98. It was The Ultimate Warrior first match on WCW Monday Night Nitro.

 

Ed’s Perspective: Random Thoughts

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A few weeks into my return to DTRT Wrestling.com for the Wrestlemania season and I decided to just share some random thoughts on the business that I’ve loved for over 40 years now.

  • When I heard that the WWE Network was going to show NXT in the same time slot as Impact, I immediately flashed back to WWF vs WCW. Back when that was going on, I hated it because I wanted to watch both and I had to choose. I was a huge WCW fan, so they won out for me. Today with DVR’s that wouldn’t be a problem.
  • AJ Lee participated in a Q&A at the Wizard World New Orleans Comic Con earlier this week. Before she came out, the host told the crowd to please not ask any questions about a certain someone who may not be with the company. Read more at Wrestling Inc.com.
  • AJ Styles vs CM Punk. In my humble opinion, any Indy promotions willing to shell out the cash for that would more than recoup their investment if they held it in a place big enough to hold all the fans who want to see it. I even had a conversation with a couple of Indy performers who would love to see it happen.
  • Who is ready to see Roman Reigns turn babyface and get a huge singles push? Hint – this writer!!!
  • Is it just me or is MVP as the “Investor” a huge let down. Maybe it is just me, because the ratings the last two weeks have been very good.
  • Sting going to WWE after all these years – is it really going to happen or are they just messing with us?  If he comes in as the General Manager, will we see him in black with a ball bat???? Just sayin’.
  • Who would like to see Zeb Coulter pull out his bull whip and turn all Dirty Dutch Mantell on Jack Swagger? Talk about some Memphis old school.
  • Seeing The Great Muta at Lockdown would be worth the price of admission.
  • Please tell me that we are not stuck with Orton vs. Batista for the main event at Wrestlemania XXX. I’m hoping that since the Super Bowl of professional football sucked so badly that the WWE will do something for the fans of the Super Bowl of professional wrestling (H/T to Trevor for the Super Bowl of wrestling line. I’m gonna steal it every chance I get).
  • Just think if a new MAJOR promotion was in the works and would sign these Free Agents – Sting; AJ Styles; Jeff Hardy; CM Punk (yes I know he’s still under contract). Competition is good for the business, and it’s long been my hope that another major promotion would appear on the horizon.
  • Finally, who is ready to hear me “lay the smack down” on Vanessa’s “candy ass” when the new DTRT Wrestling format hits the air soon? IF YOU SMMMMEEEEELLLLLL What Ed is Cookin’. (See I know I’m already pissing her off with The Rock references).

Ed’s Perspective: WWE Channel – Great for the Fans

13381511043949843807It has been several days now since the big announcement from the WWE about the Feb 24th debut of the WWE Network. If you missed it, you can watch the entire News Conference at this link.

What an awesome opportunity this is, and not just for fans of WWE. The thing that sticks out to me the most is the On Demand library that will include everything recorded from WCW and ECW.

The next big thing in my opinion and what makes this the biggest no-brainer purchase for a wrestling fan, ever! Every PPV,  starting with Wrestlemania 30, will be included in the $9.99 per month cost for WWE Network.

Add to that,  live and original programming, access on all devices including desktop and laptop computers, smart phones, and tablets, along with new reality shows, live action, and all Raw and Smackdown shows recorded and you have an amazing value.

I’m so excited to relive the different eras of the WWE, whether it be the early years, the Hogan era, the Attitude era, or the superstars from today. Add to that, I’m a huge fan of WCW, and I’m like a kid in a candy store, and I’m pretty sure I haven’t even digested some of the other things that included in this package.

I’m not sure how anyone, outside of maybe the cable companies, can have anything bad to say about this announcement. Thank you WWE for making this affordable for everyone, and I don’t know too many people – even poor folks, who don’t waste $9.99 on something every month.