As lawmakers mull massive expansion of program, WWE offers glimpse of how film tax credits work

Yahoo

24-04-2025

Wrestlemania events were taped for broadcast on television or streaming services, which is why WWE is eligible for film tax credits. (Photo courtesy of Harry Reid International Airport)
WWE is approved to receive $4.2 million in transferable film tax credits for WrestleMania 41 and related events, according to an application approved earlier this month by the Governor's Office for Economic Development and the Nevada Film Office.
That tax abatement is on top of a $5 million sponsorship from the Las Vegas Convention and Visitors Authority, which was approved back in May 2024.
The $4.2 million in transferable film tax credits represents roughly 12% of the $33.7 million total production budget WWE estimated for two nights of WrestleMania 41 at Allegiant Stadium in Las Vegas and three nights of wrestling events at nearby T-Mobile Arena. But $4.2 million is more than half of what the company estimated it would spend on local labor and at local businesses.
WWE estimated it would pay $2.6 million in wages to Nevada residents and $17 million to out-of-state talent. Both amounts, as well as $5.3 million in in-state spending on things like hotels and catering, were considered qualified expenses for determining the amount of film tax credits the company is eligible to receive.
The application, which is considered a public record, illuminates the operations of Nevada's transferable film tax credit program, which is currently capped at $10 million per year but is being considered for massive expansion through a pair of competing bills. The application was submitted by Event Services LLC, a wholly-owned subsidiary of WWE, and approved by the Nevada Film Office, a division of GOED, at a meeting on April 3.
WrestleMania 41 was held at Allegiant Stadium in Las Vegas on Saturday and Sunday. Three other wrestling events were held at T-Mobile Arena on Friday, Saturday, and Monday. All five events were taped for broadcast on television or streaming services, which is why the company is eligible for film tax credits.
The weekend also included myriad related events, including a five-day 'interactive fan experience' called WWE World held at the Las Vegas Convention Center, which is operated by the LVCVA.
WrestleMania is not representative of most productions that apply for Nevada's film tax credits because it is a live event that generates ticket sales, which will directly generate revenue for the state through live entertainment tax and indirectly through tourist hotel rooms and sales tax.
When applying for transferable film tax credits, companies must disclose their total budget and break down what amounts are being spent on labor and other types of expenditures.
According to the WrestleMania application, which is dated early March, the company estimated a total budget of $33.7 million, including:
$2.4 million for Nevada stagehands,
$2.7 million for non-resident 'below-the-line' labor,
$17 million for non-resident 'above the line' talent,
$5.3 million in Nevada expenditures,
$8.6 million in non-Nevada expenditures, and
$260,000 for Nevada security workers.
WWE estimated their five taped events would hire 450 Nevadans for 22,100 hours. That works out to an hourly wage rate of $121.71.
As for non-Nevadan labor, they estimated 300 'above the line' people — those are the executives, directors, and top-billed performers like John Cena and Cody Rhodes — earning $17 million and 450 'below the line' people working 10,800 hours for $2.7 million.
The $5.3 million in non-labor in-state spending is further broken down:
$3 million on miscellaneous expenses,
$855,000 in freelancer hotel expenses,
$369,000 in hotels for talent,
$323,921 in equipment rental,
$106,000 for catering, and
$40,137 for props, stunts & gags.
WWE requested that talent expenses and building rents budget items be considered confidential and redacted from their otherwise public application. That is a common request granted by GOED. Cumulative spending amounts listed on the spreadsheet suggest around $62,000 was spent on building rent and related expenses.
TKO Group Holdings, the parent company of WWE, on Tuesday called Wrestlemania 41 'the most-successful and highest-grossing' in the company's history, though it did not disclose any financial amounts. An estimated 125,000 people attended the two-night main event.
WWE stated in press materials and on its application to GOED that WrestleMania brings 'more than $200 million in economic impact for host cities on an annual basis.'