I think it would.
Bobby Heenan used to wrestle on and off again in the old AWA with the Blackjacks and even Nick Bockwinkle at times, and he was one of the best managers out there.
Lou Albano, Fred Blassie, Arnold Skaaland, all wrestled before they were managers.
Now, I'm not saying it's a requirement, as there are lots of managers who have never wrestled and were great.
I just think knowing the business from the in ring side would give someone that much more of an edge as a manager.