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New Contract Regulations Could Have Massive Impact On WWE

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The Federal Trade Commission could have just changed the game for WWE.

For a number of years, WWE has utilised noncompete clauses in its contracts, meaning when Superstars are released they can’t jump straight onto television with a rival. The clauses are usually 90 days for main roster stars and 30 days for talents in NXT.

However, noncompete clauses could soon be a thing of the past.

On April 23rd, the Federal Trade Commission voted 3-2 in favour of banning noncompete agreements. The agency noted that the agreements lead to an “unfair method of competition” and actually break federal law.

Back in 2023 when the ban was first proposed, Chair Lina M. Khan stated:

“The freedom to change jobs is core to economic liberty and to a competitive, thriving economy. Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. By ending this practice, the FTC’s proposed rule would promote greater dynamism, innovation, and healthy competition.”

Despite the vote, The U.S. Chamber of Commerce called the ban “unlawful” and said it would fight the plans in court.

WWE Releases Several Superstars

The vote comes just days after WWE released multiple Superstars including the likes of Jinder Mahal, Xia Li, and Cameron Grimes. All of those released are expected to be bound by noncompete clauses, with Mahal confirming as much in his social media bios.

It’s been reported that the sports entertainment giant cited budget cuts as the reason for the departures.