There is no shortage of controversy when it comes to WWEs contracts. The year-long non-compete clauses are crazy for most to comprehend, but the very basis of the contracts may be full of legal loopholes and vague wording.
WWE classifies its talent as independent contractors, but that classification may not hold up under legal scrutiny. Former wrestlerlawyer David Otunga has laid out how WWEs independent contractor model, and he did so in a new YouTube video on his channel.
In his video, David Otunga argued that the core problem is in the control WWE has over talent even while labeling them as independent contractors. As he broke down those contracts, he also made it clear that he would help them re-work those contracts. That being said, he found something that could be a knockout punch for that situation.
This FTC rule was introduced in 2024, and it explicitly wraps independent contractors into its protections. As David Otunga noted, WWE cannot sidestep compliance simply by continuing to designate talent as nonemployees.
In addition to those WWE contract noncompete issues, David Otunga highlighted the companys binding arbitration clause, which is part of every mainroster contract. The clause makes sure to channel any disputes into private arbitration in Stamford, Connecticut, a state that is very business-friendly, rather than open court.
David Otunga went on to warn that this framework for WWE contracts puts out the notion that talent are treated as employees, which directly goes against WWEs independent contractor defense. That leads to the legal catch22 he continued.
Andrade may be the most recent Superstar to deal with this kind of situation, but he likely wont be the last. In the meantime, WWE contracts are going to keep including this wording.
Pro wrestling fans, and attorneys, are now watching this situation closely. If one talent files a lawsuit and wins, that could overturn the classification or noncomplete enforcement all together. The big question is who has the resources to make that happen, because it would take a lot of legal fees to fight a machine like WWE.
It remains to be seen whether a court case will come out of this. As the legal landscape changes, one thing is clear, because WWEs idea of classification and control is facing serious pushback.
Do you think WWE contracts need to be changed? Please share your thoughts and feedback in the comment section below.
