Now a member of the TKO Board of Directors, Dwyane ‘The Rock’ Johnson is one of the most powerful figures in pro wrestling today, but he’s never forgotten where he came from. Specifically when he entered the business with just 7 dollars in his pocket.
Johnson was a guest on Patrick Bet David’s podcast and discussed his early financial struggles and first major contract negotiations with Vince McMahon in WWE.
“My very first contract with WWE, with Vince, was a five-year contract for $150,000 a year. Keep in mind, not only taxes, but in the world of pro wrestling, I had to pay for everything. Hotel, food, transportation. $150 grand per year is great…when you’re wrestling 250 dates a year, do the math with what you’re getting per match. It was what it was. It was an opportunity for me. I came from seven bucks.” Johnson said.
As WWE was entering it’s major boom period known as the Attitude Era, Johnson knew he was in line for major pay increase. When he was approached about a contract renegotiation, due to his rise in popularity, Johnson said he choose to hammer out a new agreement with Vince McMahon himself.
He ended up making quite the request, using his good buddy Stone Cold Steve Austin as a point of reference.
“As I became The Rock, [Vince McMahon] wanted to renegotiate my contract two to three years in,” Johnson said. “He said, ‘Are you going to have an agent? Are you looking for an agent?’ ‘I’m not. I’d like to negotiate with you directly. How we met was with a handshake, and I believe how we’re going to do this is with a handshake.’ Handshakes are very important to me. I always say my handshake is better than anything I ever sign. He said, ‘Great. I love that. I respect it. What are you thinking?’ I said, ‘Who is the highest paid, if you don’t mind me asking. Between us, who is the highest paid on the roster?’ He said, ‘Stone Cold Steve Austin.’ ‘What’s his guarantee?’ ‘One million dollars.’ ‘I want two.’ ‘Two million?’ ‘Yes.’ ‘Guaranteed?’ ‘Yes.'”
McMahon then made a his own request, asking Johnson to take some time to learn the financial aspects of the pro wrestling industry. He put him in contact with WWE executives so he could study the economics of running the company.
He asked The Rock to take a few months to learn the business, and then come back to the negotiating table.
“I didn’t take three months. It was maybe two weeks. It was baptism by fire, and I learned to absorb as much as I could about the business. I went back to Vince, I thanked him and gave him a big hug. I said, ‘I understand now. I’d like to match it at a million dollars, what Steve is getting. Thank you for taking me through it.’ We had a great conversation and he said, ‘How much do you think you’re going to make this year?’ ‘My guarantee is a million. I’ve been averaging about 50% over my guarantee. So, maybe 1.5?’ He said, ‘Now that you’ve taken yourself through that and understand the business, you’re going to make $15 million.’ He did the math and could see where it goes. ‘You’ll make $15 million.’ By the time we had 1999-2000, wrestling has a boom period.” h/t Fightful.
