SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 29, 2000
World Wrestling Federation Entertainment, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 000-27639 04-2693383
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1241 East Main Street, Stamford, CT 06902
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (203) 352-8600
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Item 5. Other Events.
On March 29, 2000, World Wrestling Federation Entertainment,
Inc., a Delaware corporation ("WWFE"), announced a strategic partnership with
NBC to jointly own and run the XFL, a new professional football league that will
begin play on February 3, 2001. The agreement calls for each party to own 50% of
the league and its eight teams.
Separately, NBC has agreed to purchase a minority interest in
WWFE through the sale of approximately 2.3 million newly issued shares of Class
A Common Stock, par value $.01 per share, at a purchase price of $13.00 per
share, which represents a total investment by NBC of $30 million. The investment
by NBC in WWFE is subject to, among other things, the successful completion by
NBC of customary due diligence.
Together with NBC, WWFE issued two press releases with respect
to these events, which are filed as an exhibits to this Form 8-K.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99.1 Joint Press Release dated March 29, 2000
99.2 Joint Press Release dated March 29, 2000
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
WORLD WRESTLING FEDERATION
ENTERTAINMENT, INC.
By: /s/ August J. Liguori
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August J. Liguori
Executive Vice President and
Chief Financial Officer
Dated: April 4, 2000
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EXHIBIT INDEX
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99.1 Joint Press Release dated March 29, 2000
99.2 Joint Press Release dated March 29, 2000
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Exhibit 99.1
NBC AND WORLD WRESTLING FEDERATION ENTERTAINMENT
FORM STRATEGIC PARTNERSHIP FOR XFL
XFL Football To Be Broadcast on NBC Primetime on
Saturday Nights Starting February 2001
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Stamford, CT/New York NY, March 29, 2000 - NBC and World Wrestling Federation
Entertainment, Inc. (NMS: WWFE) today announced a strategic partnership to
jointly own and run the XFL, a new professional football league that will begin
play on February 3, 2001. The agreement calls for each party to own 50% of the
league and its eight teams. In addition, NBC has committed to broadcast regional
and national XFL games on Saturday nights in primetime from February through
April. NBC will also broadcast the XFL Championship game, the first of which
will be played on April 21, 2001.
XFL football will be 100 percent competitive sport - the brand of "smash mouth"
football that fans crave. The league will connect with fans by returning
football to its tougher roots and the wide-open way it was played in the `60s
and `70s. The XFL will encourage individuality and the natural expression of joy
and emotion on the field of play. Through rules changes designed to enhance the
action and speed of the game, along with broadcast television innovations that
will bring fans "inside the game," the XFL will recapture the natural
personality, fun and intensity of pro football.
Dick Ebersol, Chairman, NBC Sports and Olympics said, "The absolute key to the
success of this league lies in the incredible success Vince McMahon has had
throughout his career in reaching the most elusive audience in
television...young males. For example, in weekly head-to-head competition with
"Monday Night Football" over 17 weeks in 1999, McMahon's live event programming
outdrew "Monday Night Football" among young adult males, ages 12-24, by 47
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percent.(1) That is an incredible triumph of marketing and promotion by the
McMahon organization."
Ebersol added, "We're excited to be a part of this historic and unique
opportunity to launch a new football league to air on NBC in primetime beginning
each February at a time when the public's interest in football is at its
absolute peak - one week after the Super Bowl. Together with the McMahon
organization, we want to put the fun back into professional football."
Vince McMahon, Chairman of World Wrestling Federation Entertainment, Inc., said,
"The combined talents of both NBC and WWFE, which include original television
programming expertise, complementary audience reach, and brand-building success
is a sum much greater than its parts. Saturday nights have always been special
on NBC and we're proud that XFL football has found a home here. In addition to
having a long history of working strongly together in the past, I believe that
the combination of these two organizations will make XFL football one of the
best built brands in all of sports."
Scott Sassa, President, NBC West Coast, said, "The XFL will be a great addition
to our Saturday night lineup. Vince McMahon's unprecedented ability to reach the
important young adult male demographic across multiple networks, coupled with
NBC's multiple promotional platforms in both entertainment and sports, ensures a
terrific launch. The awareness factor at the launch of this league next February
should be - especially among young males - almost 100%. NBC is in the business
of appealing to younger viewers and this is a great opportunity to attract even
more
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(1)WWF's fall 1992 2-hour programming block from 9-11 p.m. on Mondays on USA
Network averaged an 8.5 national rating among young adult males ages 12-24.
ABC's "Monday Night Football" averaged a 5.8 national rating in the same
demographic over the same 17-week period in the same head-to-head 9-11 p.m. time
period.
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young adult males to the network. NBC Entertainment looks forward to working
with the XFL and NBC Sports on this unique venture."
Television viewers will be given unprecedented access with cameras positioned in
locker rooms, on sidelines and in the helmets of selected players. XFL players,
coaches, locker rooms and huddles will also be miked, providing viewers with
unique insight into the strategy of the game and enabling them to fully
experience the true emotion, attitude, and intensity of the players, both on and
off the field. Both NBC and WWFE will cross-promote the XFL during their
respective programming.
To encourage more wide open offensive play and to keep game times under three
hours, the XFL will adopt a number of rules changes, including: Eliminating the
fair-catch rule (making punts live balls), requiring only one foot inbounds on
pass receptions, instituting a 35-second play clock and limiting halftime to 10
minutes.
The objective of every XFL player will be to win games. XFL players will be paid
salaries to play, but they'll be paid more to win. Each week the winning teams
will share in a victory bonus pool - giving added significance to each week's
matchups.
The XFL has already begun building a highly qualified team to launch the new
league. Basil V. DeVito Jr., a sports business veteran whose resume includes
WWFE, National Thoroughbred Racing Association (NTRA), and the Indiana Pacers
will serve as President of the XFL. Billy Hicks, the XFL's Vice President of
Administration most recently served at President and General Manager of Major
League Soccer's (MLS) Dallas Burn and has also worked as a General Manager in
the World League of American Football (WLAF) and as an administrator with the
Dallas Cowboys.
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Heading up Football Operations as Vice President is Michael Keller, a former
linebacker for the Dallas Cowboys and former senior executive with the National
Football League, United States Football League (USFL) and WLAF. Michael Weisman,
a highly respected, award-winning producer whose credits include seven Super
Bowls and 15 Emmy Awards, has been brought on as a broadcast production
consultant.
A talented and experienced scouting staff is in place and an XFL Advisory Panel
has also been created. The advisory panel features several highly respected
football and sports industry veterans, including Dr. Larry Lemak, a respected
orthopedic surgeon and former owner and manager in the USFL, WLAF and the
Canadian Football League (CFL); George Martin, a 14-year veteran of the New York
Giants and former President of the NFL Players Association; Carl Paganelli, who
brings 33 years of officiating experience to the XFL; and former Dallas Cowboys
superstar Drew Pearson.
The XFL is actively negotiating with a second television partner to complement
the NBC portion of the XFL broadcast package. As part of the pact, NBC and WWFE
have agreed that the XFL will control 100 percent of the advertising inventory
sold during all XFL broadcasts by a dedicated sponsorship and advertising sales
force. Six cities have been announced to date: Los Angeles, Miami, New York,
Orlando, San Francisco and Washington, D.C. Two more teams will be announced in
the next 30 days. WWFE announced the formation of the XFL on Feb. 3, 2000.
# # #
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Contacts:
World Wrestling Federation Entertainment, Inc.
Jayson Bernstein (media)
203-353-5019
Gary Fishman (financial)
212-889-1727 x110
NBC
Kevin Sullivan
212-664-2014
Jennifer Arnold
212/664-7202
Forward-Looking Statements: This news release contains forward-looking
statements, which are subject to various risks and uncertainties. These risks
and uncertainties include the conditions of the markets for live, broadcast
television, cable television, pay-per-view and Internet entertainment; and
licensed merchandise; acceptance of the Company's media and merchandise within
those markets; and other risks and factors identified in the filings with the
Securities and Exchange Commission. Actual results could differ materially from
those currently anticipated.
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Exhibit 99.2
NBC TO TAKE MINORITY STAKE IN
WORLD WRESTLING FEDERATION ENTERTAINMENT, INC.
Stamford, CT/New York NY, March 29, 2000 - World Wrestling Federation
Entertainment, Inc. (NMS: WWFE) and NBC announced today an agreement in which
NBC has agreed to purchase a minority stake in WWFE through the sale of
approximately 2.3 million newly issued shares of Class A Common stock at $13 per
share for a total investment of $30 million. The agreement is subject to
customary due diligence procedures. The sale represents approximately 3% of the
total number of WWFE shares outstanding.
"We're pleased to have NBC as a shareholder of World Wrestling Federation
Entertainment, Inc.," said Linda McMahon, President and CEO of WWFE. "We
anticipate consistent growth in all areas of our business, including
international expansion, and we're delighted that NBC is confident in the
long-term value and potential of our business and our brands."
"NBC is excited about the investment in WWF Entertainment," said Bob Wright,
President and CEO of NBC. "The WWF is widely recognized as having created a
leading brand and has done a remarkable job gathering large audiences in the
coveted male demographics. We are confident that this investment coupled with
our new partnership with the XFL will lead to even more success."
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Forward-Looking Statements: This news release contains forward-looking
statements, which are subject to various risks and uncertainties. These risks
and uncertainties include the conditions of the markets for live, broadcast
television, cable television, pay-per-view and Internet entertainment; and
licensed merchandise; acceptance of the Company's media and merchandise within
those markets; and other risks and factors identified in the filings with the
Securities and Exchange Commission. Actual results could differ materially from
those currently anticipated.
# # #
Contacts:
World Wrestling Federation Entertainment, Inc.
Jim Byrne
203-352-8600
Jayson Bernstein
203-353-5019
Gary Fishman (investor relations)
212-889-1727 x110
NBC
Kevin Sullivan
212-664-2014
Maria Battaglia
212-664-3457
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