WWE was awarded $23.8 million by a federal court in Connecticut because of a dispute with a Thai broadcaster, CTH. WWE filed a suit in August, alleging that CTH hadn’t paid invoices all the way back to March of 2014.
There are plenty of details available on the case at Law360.
A default judgment was entered against CTH Content Co. Ltd. and its parent company, CTH Public Co. Ltd., a major cable television and Internet service provider in Thailand, on March 7 for $23.4 million, court records show. The court entered a supplemental judgment on Tuesday for an additional $405,894 to cover contractually owed interest.
WWE terminated the agreement weeks later, as mentioned in an amended complaint, and demanded all of the licensing fees due over the life of the five-year contract that agreed to in November of 2013.
WWE claims that it and CTH agreed in November 2013 to a five-year deal, giving the broadcasting company rights to show nearly a dozen WWE programs on its CTH Sports Channel. CTH would pay $2.8 million for the first year of the licensing agreement, with prices increasing to $6.8 million in 2018, according to the deal.
CTH never answered the complaint by WWE, which led to WWE filing a motion for entry of default judgment in October.
WWE said CTH missed several payments beginning in March 2014, despite being warned that it was in breach of the agreement. WWE claims the broadcasting company also never provided a bank guarantee called for by the contract.
The company filed a motion in October for entry of default judgment after it said CTH failed to respond to its complaint.
WWE recorded record revenue in 2015, despite the new contract they agreed to with NBC two years ago falling short of expectations. WWE wanted its investors to be optimistic because of the increases in their international TV contracts. But if other international providers have issues paying WWE like CTH apparently did, could WWE’s footprint in other countries end up shrinking if the contracts aren’t renewed? It’s worth keeping an eye on, but won’t be a concern – yet.