The WWE was losing money with live shows. The money they were making was hardly covering the cost of the venues. If you watch the shows prior to COVID, the attendance was ass and entire sections of the arena were curtained off...
It’s not like they were going to die off or anything, but they weren’t making as much money as they are right now.
Once COVID happened, the WWE was able to use their own performance center for their shows, and not have to pay a venue fee. They may have lost some sales from live merchandise, but it wasn’t that big of a deal.
The WWE gets most of their money from their network deals, and they most recently signed a fat one with FOX. This is part of the reason why McMahon was adamant at having his wrestlers be considered “essential workers” because if they stopped doing live shows, he would have been in breach of contract. While other wrestling promotions started recording future episodes of their shows in advance, the WWE would still have live shows so they could satisfy their contract with Fox.