Post by nibs92 on Jun 25, 2019 16:39:41 GMT -5
AWA – Take over
In the summer of 1990, a meeting took place between AWA owner Verne Gagne and former Mexican Luchadore, Jose Diaz Velazquez. The latter is better known in the ring as Ray Mendoza.
The AWA was once considered one of the top wrestling promotions in the united states, but due to the national expansion of the WWF and NWA, it now found itself as a very distant third. Gagne was seriously considering winding up the business, due to the creative and financial problems it was having. There was already talk of the company filing for bankruptcy.
Mendoza, a high profile name in Mexico as both a wrestler and actor, bore 5 sons, who all competed in the ring as Los Villanos (I-V). Mendoza was no stranger to promoting wrestling, having helped to form the Universal Wrestling Association in his native land. Due to a falling out with his partners, Mendoza split from the company and decided to focus on promoting his sons’ careers (unfortunately, Jose Jr, who masqueraded as Villano II, died in 1989). After several failed attempts to get his sons signed up to a major company (the closest he got was an unsuccessful trial with WCW), Mendoza took the next step of trying to crack an international market by looking to invest in a promotion.
While looking at various companies to invest in, Mendoza met and befriended a Russian Samba fighter turned pro wrestler by the name of Magomedkhan Amanulayevich Gamzatkhanov, better known in the wrestling world as Volk Han. Han, a wealthy man from a Russian oil family, had recently moved to the USA in an attempt to progress his wrestling career. On hearing of Mendoza’s idea of investing in a wrestling company, Volk pitched the idea of trying to buy out the struggling AWA, with Han prepared to become an equal, but silent partner. In return Volk Han would become the face of the company, while Los Villano’s would have a platform in America to showcase themselves. It was also common knowledge that ESPN had a TV deal to broadcast Gagne’s AWA matches until at least 1992. Mendoza set up a meeting with Gagne, to sound him out on the prospect of sale.
On the 25th July 1990, Verne Gagne and Ray Mendoza sat down in the presidential suite of the Hilton Hotel in Minnesota to discuss the proposed sale. After months of negotiations, the deal was finally signed on the 3rd October 1990. With an equal 50% stake in the company, Ray Mendoza and Volk Han were now the proud owners of the American Wrestling Association.
The last show promoted by the Gagne’s was on the 11th August 1990. Since then, ESPN had been showing re-runs of the glory years of the AWA, to fill the vacant slot left by the lack of new shows. This met the approval of the new owners as the TV show was one of the highest drawing shows on the sports channel.
Mendoza, who was handling the business side of the company, met with TV executives at ESPN, to discuss the idea of promoting some new shows. The co-owner was dealt a major blow, as ESPN had no interest in creating a new wrestling show. The business naivety of Mendoza and Han was further exposed, as it was also pointed out that ESPN owned the intellectual property of all AWA shows up to and including the 11th August 1990. The new owners would receive no advertising money or licensing fees for the broadcasts.
The news got worse, as virtually all talent chose to ply their trade elsewhere, leaving the company without anything resembling a roster. The local Auditorium also refused to promote any shows at their venue, due to a falling out with previous owner, Verne Gagne.
Working capital was extremely tight at this point and the two owners were looking at their options on the best way to use their virtually worthless promotion. The two struck a deal with the local college. The AWA would be able to use their old gymnasium to promote their live shows. Local students would take care of filming and producing shows, which will be distributed to tape traders in a bid to build a fanbase and hopefully strike a deal with a television company, somewhere down the line. The company plan to lean on the student community further, for producing newsletters and advertising. This low budget approach will hopefully give the company some breathing space.
The company will rely heavily on independent talent to supplement Volk Han and Los Villanos, the only workers with written contracts. The AWA will try to hire wrestlers as cheaply as possible and will try to lure them with the prospect of the tape trading boosting their profile. Both owners will use what connections they have in the business to attract people as well and with no end of luck, The AWA may prosper again. The first show will take place on 7 May 1991.
Following the acquisition of the AWA, Ray Mendoza was quoted as saying “the AWA is coming back…………. The resurrection is nigh. The AWA will become the biggest promotion in the world”. At this moment in time, that statement couldn’t be further from the truth.
In the summer of 1990, a meeting took place between AWA owner Verne Gagne and former Mexican Luchadore, Jose Diaz Velazquez. The latter is better known in the ring as Ray Mendoza.
The AWA was once considered one of the top wrestling promotions in the united states, but due to the national expansion of the WWF and NWA, it now found itself as a very distant third. Gagne was seriously considering winding up the business, due to the creative and financial problems it was having. There was already talk of the company filing for bankruptcy.
Mendoza, a high profile name in Mexico as both a wrestler and actor, bore 5 sons, who all competed in the ring as Los Villanos (I-V). Mendoza was no stranger to promoting wrestling, having helped to form the Universal Wrestling Association in his native land. Due to a falling out with his partners, Mendoza split from the company and decided to focus on promoting his sons’ careers (unfortunately, Jose Jr, who masqueraded as Villano II, died in 1989). After several failed attempts to get his sons signed up to a major company (the closest he got was an unsuccessful trial with WCW), Mendoza took the next step of trying to crack an international market by looking to invest in a promotion.
While looking at various companies to invest in, Mendoza met and befriended a Russian Samba fighter turned pro wrestler by the name of Magomedkhan Amanulayevich Gamzatkhanov, better known in the wrestling world as Volk Han. Han, a wealthy man from a Russian oil family, had recently moved to the USA in an attempt to progress his wrestling career. On hearing of Mendoza’s idea of investing in a wrestling company, Volk pitched the idea of trying to buy out the struggling AWA, with Han prepared to become an equal, but silent partner. In return Volk Han would become the face of the company, while Los Villano’s would have a platform in America to showcase themselves. It was also common knowledge that ESPN had a TV deal to broadcast Gagne’s AWA matches until at least 1992. Mendoza set up a meeting with Gagne, to sound him out on the prospect of sale.
On the 25th July 1990, Verne Gagne and Ray Mendoza sat down in the presidential suite of the Hilton Hotel in Minnesota to discuss the proposed sale. After months of negotiations, the deal was finally signed on the 3rd October 1990. With an equal 50% stake in the company, Ray Mendoza and Volk Han were now the proud owners of the American Wrestling Association.
The last show promoted by the Gagne’s was on the 11th August 1990. Since then, ESPN had been showing re-runs of the glory years of the AWA, to fill the vacant slot left by the lack of new shows. This met the approval of the new owners as the TV show was one of the highest drawing shows on the sports channel.
Mendoza, who was handling the business side of the company, met with TV executives at ESPN, to discuss the idea of promoting some new shows. The co-owner was dealt a major blow, as ESPN had no interest in creating a new wrestling show. The business naivety of Mendoza and Han was further exposed, as it was also pointed out that ESPN owned the intellectual property of all AWA shows up to and including the 11th August 1990. The new owners would receive no advertising money or licensing fees for the broadcasts.
The news got worse, as virtually all talent chose to ply their trade elsewhere, leaving the company without anything resembling a roster. The local Auditorium also refused to promote any shows at their venue, due to a falling out with previous owner, Verne Gagne.
Working capital was extremely tight at this point and the two owners were looking at their options on the best way to use their virtually worthless promotion. The two struck a deal with the local college. The AWA would be able to use their old gymnasium to promote their live shows. Local students would take care of filming and producing shows, which will be distributed to tape traders in a bid to build a fanbase and hopefully strike a deal with a television company, somewhere down the line. The company plan to lean on the student community further, for producing newsletters and advertising. This low budget approach will hopefully give the company some breathing space.
The company will rely heavily on independent talent to supplement Volk Han and Los Villanos, the only workers with written contracts. The AWA will try to hire wrestlers as cheaply as possible and will try to lure them with the prospect of the tape trading boosting their profile. Both owners will use what connections they have in the business to attract people as well and with no end of luck, The AWA may prosper again. The first show will take place on 7 May 1991.
Following the acquisition of the AWA, Ray Mendoza was quoted as saying “the AWA is coming back…………. The resurrection is nigh. The AWA will become the biggest promotion in the world”. At this moment in time, that statement couldn’t be further from the truth.
