Word has come through that former WWE Title holder Jinder Mahal, now competing under his real name Raj Dhesi, lately offered enthusiasts a detailed look at how WWE talent contracts are structured and how wrestlers can earn beyond their guaranteed salaries.
In a video posted to Instagram, Dhesi used a hypothetical contract to explain the system WWE has traditionally used to compensate performers.
Dhesi noted that WWE talent are paid on a weekly basis, using an example of a three-year contract worth $1 million per year as a downside guarantee. For this example, let’s sign a 3-year, $1 million per year contract downside guarantee. “How does a WWE contract actually work? WWE pays its talent every single week.”
As per Dhesi, that annual guarantee is divided into weekly payments. “So take your downside guarantee of $1 million divided by 52 for 52 weeks. Your weekly check will be $19,230. For the sake of this example, let’s round it up to $20,000.”
He spelled out that the downside guarantee functions as a minimum salary, meaning the performer receives that weekly amount regardless of injuries or how often they are used. “Now with a downside guarantee, that $20,000 check will come in regardless if you are injured or if you wrestle 7 days a week. Same amount every single week.”
Dhesi then addressed a common question among enthusiasts: whether WWE wrestlers can earn more than their guaranteed contracts. Absolutely. “Now, can a WWE in-ring talent out-earn their downside guarantee? A downside guarantee is only a minimum. Beyond that, there is no maximum, while there is no set maximum.”
To explain how additional earnings are calculated, Dhesi described what he referred to as WWE’s “bucket system.”
“So what WWE uses is what’s called a bucket system. Now, the bucket system is imaginary in nature. It is essentially off the books.”
Based on Dhesi, wrestlers continue receiving the same weekly pay, while the “bucket” tracks earnings generated through television appearances, premium live events, live events, merchandise sales, and other revenue streams. “Television tapings, live events, pay-per-views, merchandise, everything goes into this bucket.”
Using a series of examples, Dhesi elaborated how a wrestler could initially be operating at a negative balance in the bucket before eventually becoming profitable through major appearances and merchandise sales.
Importantly, he stressed that negative balances do not mean talent owe WWE money. “Again, don’t be alarmed by the negative amount.. Meanwhile, You do not owe WWE this money.”
He later illustrated how a major pay-per-view such as The showcase of the immortals could dramatically alter a superstar’s standing. You earn $500,000, except you do not get paid $500,000. “So week 30, 6 months later, you come back and you featured contest WrestleMania. On a related note, it goes into the bucket. On a related note, this will offset it.”, whatever you were negative by.
If a superstar finishes the arrangement year with a positive balance in the bucket — that amount is paid out as additional compensation above the downside guarantee. “At week 52, I am positive $325,000 in my bucket. To add further context, so the total amount that I made for that year would be $1.35 million.” Additionally, and by week 52, I will have received $1 million of my downside guarantee, and this amount of $325,000 will essentially be a bonus.
Dhesi noted that most wrestlers never exceed their downside guarantee. “Now, for most wrestlers, I would say over 90% of wrestlers, this number is going to be in the negative.”
That said, he emphasized that negative balances are wiped clean when a brand-new contract year begins. “And if it’s in the negative, does not matter, because after week 52, we go back to week 1, and your balance starts at zero. You do not owe WWE any money.”
Dhesi concluded by noting that the process then repeats for each year of the terms, with the performer continuing to receive their guaranteed salary. Having opportunities to earn additional money through strong performance — merchandise sales, and high-profile appearances. “Year 2 starts on this 3-year contract. You will make another million dollars guaranteed.”