There are three major elements to consider when looking at what happened to piss away such amazing potential - The Fans, The Stars, and The Booking.
The Fans
Looking at the facts and figures, the WWF was starting to lose momentum in early 2001. Ratings had began to fall, even if slightly, from their peak. Things were getting stale on top, and people following closely knew it. WCW clearly would have filled this void, had it been executed the way most fans would like it. But I want to touch on something modern fans may lose sight of.
Back then, in the days of wrestling magazines, talent jumping back and forth, and two powerful national promotions, fan allegiance to the WWF or WCW was almost tribal. No matter if you watched both, you had a side that you grew up on, or fell in love with first, that deep down you rooted for. WCW fans hated the WWF and anything that resembled it. WWF fans were told to never accept WCW. It bred a visceral hatred within millions of people.
When WCW was purchased, and early mentions of WCW matches or shows were made, they were booed out the building by WWF fans. Ultimately, casting WCW as babyface in the early going was a huge mistake, and the first misread of many.
Everybody remembers the famous Booker/Bagwell stinkfest from Tacoma on Raw, the match that caused Vince McMahon to completely change course and bring in ECW to "save" the invasion angle. And as nice a moment as that was, at the time and in hindsight, the fact they even had to do that so early into the WCW angle is appalling. And with even a minute of analytical thought, how they thought Booker Vs. Bagwell was a good idea blows my mind.
WWF fans didn't want WCW Vs. WCW on their time. Take that shit to TBS, it's second rate, it's garbage, it's inferior. The WWF had conditioned these people to despise this for years. And now, that's what you are presenting them, and you wanted people to cheer. Instead, the Tacoma crowd violently turned on the match and direction of the angle. But in a major faux pas, WWF saw that and took it as a sign that the WCW brand was too damaged, and that there wasn't money in the WWF Vs. WCW story. But there was. That was the dream for years.
And as it turned out, the dream alone, even with a terrible build, helped do the best non-WrestleMania buyrate of all-time at the Invasion Pay-Per-View. Conflict they liked. Conflict they believed. Conflict they wanted. The people just didn't want what you gave them. The fans were not the problem. They were ready to see the dream. There was just something massive missing.
The Stars
WWF Vs. WCW relies on one thing. Stars Vs. Stars. That's the fantasy that fans had argued about for years, read about in magazines, and always wanted to see. The ultimate "what would happen" scenario.
And therein lies the major issue. WWF wasn't willing to get the stars. They did in the end anyway, but Goldberg, Flair, Steiner, Nash, Sting, DDP, Booker T and many more of the potential difference makers were under Time Warner deals, and were offered buyouts at 30 cents on the dollar, hoping the WWF would come calling with contracts for the guys and help offset the costs. This meant the WWF would have to make massive offers in order to convince the WCW wrestlers sitting at home, collecting hundreds of thousands of dollars, that they should get off the couch and take bumps.
And as it turned out, that wasn't a game WWF was willing to play. Booker and DDP (who has since said he lost $487,000 by making the deal) were happy to take the gamble of the buyout and a comparitively low WWF offer to be part of the angle. The others weren't.
When it comes to the stars needed to make it really work, WWF came in without the ammunition. And while we can wax lyrical about all the guys, Goldberg was the one that mattered. The discussion starts and ends with him. Bischoff would have been great for the promos and the heat. Flair would have been great for the identity. Sting and Steiner would have been tasty bonuses. But the big money was in Goldberg.
When looking at the Time Warner deal and the amount needed to get Goldberg, you were looking at paying him anywhere from 3 to 6 million dollars. The company could easily afford it, and the reason stars get paid more is because they produce more. At that time, Goldberg was worth every penny, because his market value dictated it, and the potential was there to make it back tenfold. Goldberg without WWE wasn't worth 6 million dollars. Goldberg with WWE was worth a boatload more in 2001. But a few issues popped up. While logic lets you justify that contract, the wrestlers on the winning side making significantly less were likely not so eager to.
Nowadays, it's different if Brock Lesnar and The Rock, guys who were considered successes outside the business, come in and get big money with the hopes of shifting buyrates, because the rest of the guys can't compare themselves to that success. That's okay. But in their minds, the comparison to Goldberg does nothing but piss them off. The salary structure is gone.
So there's the dilemma that kills it. You either spend a shitload on buying contracts, paying (some of) the WCW guys more than the WWF crew and pissing them off royally, or you do what they did, and hold out.
Granted, the WWF guys would have had nowhere to go. But for the long term health of the company backstage, that creates a poisonous atmosphere, rife with bitter feeling amongst colleagues. Jealously. Undercutting. Sounds just like WCW.
The catch-22 here certainly makes it difficult to get the stars you need. But lack of star power wasn't the only reason it was fucked.
The Booking
You could, I suppose, wait until all those contracts expired and sign the guys like they ended up doing anyway. But does that really fly?
Unfortunately, the answer is probably no. At that time, the business moved so fast. A week was like a month. Four months felt like a year. A year was a lifetime. Things evolved so fast you had to strike while the iron was hot. But for that reason, it was never going to work. You had to do the angle there and then in 2001, while the product, the news of the sale and the hatred in the fans was there, when the stars were still relevant and not nostalgic retreads.
As mentioned, casting them as babyfaces was a mistake. Putting Shane with them was another mistake.
The only way it could have worked was to keep it the way it was. The "evolution" of WCW died the second it was purchased. This kind of angle, as much as it is about the personalities, is also about the bigger picture. You are pitting image Vs. image, history Vs. history, that is what is selling. Once you change the image to fit a WWF guy in there, the fundamental element of what people were paying to see was gone. Down the line, four to six months in, there is money in a turncoat. But the leader of WCW having the last name McMahon? Not gonna work.
I also think that you make a mistake ever lying to the people. Even if people know wrestling is a work, nobody ever questioned that the WWF and WCW hated each others guts for real. That's the raw, once in a lifetime emotion that does the biggest PPV number ever. Once you give them something they can't buy into, something that takes it into the realm of just another WWF angle, while it may not kill it, it does more damage than good.
Let's not forgot egos. Obviously Vince, Kevin Dunn, and all the WWF guys, even though they purchased WCW, and owned the company, still had a grudge, and was reluctant to put it over as an equal. I don't care what anybody says, the Undertaker was fucking unbearable during this time, burying DDP, Kanyon, Booker T, Mike Awesome, Sean O'Haire, Chuck Palumbo and others, both on and off screen. The locker room being worked up could make for great on-screen chemistry. Letting the WWF guys slaughter the WCW crew maliciously was bad business.
WCW has to be equal in perception. A massive threat. WCW.Com, post WWF-purchase, ran an article with Stacy Keibler, referring to her as being signed by "the now-defunct WCW". An interview with Gregory Helms on WCW.Com noted that the WWF was the big time and he was so glad to be a part of it. Same writers on both website. WWF.Com selling WCW shirts. This is the kind of shit that would get you a knuckle sandwich from Bill Watts back in '84. Attention to detail was lacking, big time.
Their initial idea to do essentially a brand split, and maintain WCW as its own TV show, was nice on paper. But TNN wasn't so hot on a WCW show. Logically, they could have expanded Heat on MTV, since nobody gave a shit about that show anyway. How did "Excess" make air in 2001 when WCW couldn't, by the way? Ultimately the WCW brand looked to TNN like it fell out of a dog's ass, and they just didn't want that show. Believe it or not, before the Booker/Bagwell match, the plan was for the Vince and Linda divorce angle to split everything down the middle, to give Raw to "WCW", and have all WWF/Alliance wrestlers in the first ever draft, so "WCW Raw" would actually be half WWF guys, and "WWF Smackdown" was half WCW guys.
A WCW show on it's own, or even the horrible half-and-half draft idea, faces the same issues - without the iconic stars, it's stillborn. And in the end, without giving people the stars they first think of when the letters "WCW" enter their mind, there is only so well a TV show or an invasion angle is going to do, even perfectly booked. In an ideal world, if you could do anything you wanted, you'd deal with it significantly differently...
The Dream
Jim Cornette's Guest Booker, while highly questionable for a lot of his ideas, did have the best idea I've heard for how to acknowledge the sale. Be honest. Vince bought it. The war is, in reality, over.
And by the way, in my ideal world, Steve Austin doesn't turn heel at Mania when you're bringing in WCW. Why the fuck would you ever think you need a new top heel when WCW is coming in for Christ's sake?
From day one, the WCW guys should be completely isolationist. Vince cuts his glorious "I rule the world" speech that he'd no doubt practiced for twenty years. No Shane McMahon, no "somebody else owns it". But a harsh reality soon becomes apparent concerning his new purchase. The WWF guys want nothing to do with these motherfuckers. No sharing a locker room, no trust, no respect, nothing. They hate them being on their turf.
And more importantly, WCW is now in Vince's building. And they're fucking pissed at Vince McMahon and the WWF for killing their company. Some of the biggest names in the business, WCW to their core, united.
You have the big stand-off, guys like Flair, Booker, DDP, Sting, Steiner in the crowd or at ringside, Austin, Triple H, Taker, Angle, Jericho, the whole WWF locker room, on the ramp, Vince in the ring in between it all, and McMahon slowly starts to realise he's actually got a major problem on his hands. You create an immediate divide, steeped in real tensions, and you don't show all your cards at once. What is Vince going to do?
As things go on, Vince decides not to book WCW wrestlers on the show, because he's afraid of what could happen. He "ices" them, until he can figure out what to do. But WCW, who are employed, have carte blanche to show up when they want and do damage. Serious damage. Vince is trying to play peacemaker, and failing miserably. He declares that nobody from either side is to have any physical contact with the other until he says otherwise. But of course, WCW has other plans.
Right as McMahon is making his declaration, Eric Bischoff shows up as the ultimate outsider, personally employed by the WCW guys, and not the WWF, as their "strategic advisor". Some of the best promos and angles in history can now begin.
Bischoff in the crowd, surrounded by WCW guys, cutting a promo on Vince McMahon and the WWF, vowing revenge. Imagine. While Vince has disgust for WCW, and doesn't know what to do about the wrestlers yet, he utterly despises Bischoff, and it begins to cloud his judgment further, insulting the WCW stars directly. Bischoff's presence only intensifies Austin further, the guy who fired him is now on the scene.
At the same time, the WCW guys are chomping at the bit. Booker T calling himself the best World Champion there is and that Austin is a fraud. Scott Steiner threatening to kill Vince and his family. Ric Flair cutting a promo on anything that moves.
Things are very clearly escalating. Regardless, on one fateful episode of Raw, McMahon orders an incredible fleet of security, the most we've ever seen, to not let any WWF wrestler touch a WCW wrestler, or vice versa, in any circumstances. Things are reaching a boiling point, but he is still going to try and contain this.
But Chris Jericho is found laid out backstage, and when he's asked what happened, he points the finger directly at WCW. McMahon's order has been ignored. Austin is furious, and since Vince doesn't want them to fight on his turf, we'll do it outside in the parking lot, where security can't stop it. Just visualise that fucking promo for a second. Austin challenging WCW to the first fight. Potentially incredible.
Vince runs to the ring, demanding Austin, the guy he's never been able to control, to stop. But the WWF has had enough. Years of insults back and forth, they're on our turf, one of our own has been attacked, and we want to fight. Of course, it doesn't happen. The WWF guys are ready in the parking lot, but WCW is nowhere to be seen. Suddenly, the doors to the building slam shut. The WWF guys are locked out.
Back in the arena. the not-employed by the WWF Bischoff hops the rail. Vince is livid. Security rushes to pull outsider Bischoff away from the ring, and succeeds. But Vince's attention is diverted, calling Bischoff every name under the sun on the mic, when from behind, for the very first time in a WWF ring, is Bill Goldberg. There is no way the crowd doesn't go ballistic. And he spears Vince McMahon to death.
The WWF guys break down the door. They're charging back in, Austin leading the way, to get to Bill Goldberg. Security bombards the scene, holding everybody apart, exactly as Vince ordered. And in a very important detail, Goldberg doesn't run away, he's fighting to get past security, a one man army in his own right. The scene is as wild as any ever seen. Jim Ross and Paul Heyman are going insane on commentary. And the show abruptly cuts to black.
It'll turn out, way down the line at a crucial moment, that Jericho is a mole, and never was attacked by WCW in the first place, his claim was simply to get the WWF worked up and out the building to allow Goldberg to get to Vince.
Vince McMahon declares all out war. He doesn't fire them, because he wants to squash them for good. And with Bischoff as the surefire heel heat magnet, WCW can stay one step ahead and keep the heat.
From this point, any manner of promos, confrontations, attacks, Nexus debut-style ringside destructions, ANYTHING, is fair game. Keep it tense, don't do interpromotional matches on TV unless it's rare and a very big deal. The anticipation of violence and conflict is key. Make people WANT it. Give them just enough to make them want more. You can do a major beatdown angle where the WCW absolutely destroys the WWF, nWo style, so long as Austin isn't there. You can have the WWF catch a hit-and-run angle and beat the fuck out of an O'Haire and Palumbo the way they did, but WWF moments of victory are rare in the beginning. Austin and Goldberg, despite a mutual desire to fight, never touch, even when war breaks out. Not until the Pay-Per-View you want to do that match on, do they ever make contact.
Whichever direction you wish to take it - what a platform you'd have, huh? Sound good? Sound like a blueprint that could sell a Pay-Per-View or six?
Wake Up Call
It's just a dream. We all had ideas. But the realities of the world in 2001 didn't allow something like this, not even close. The problem for the WWF was that this is the stuff people wanted. For years they salivated at the thought, and they never truly believed they would. And then it happened. The sale heard around the world, and fans couldn't help but think big. Because it was big...potentially the biggest they would ever see.
Unfortunately for all of us in 2001, we found out that dreams don't always come true.