More on Vince McMahon’s WWE Retirement – Fed Investigation, Future WWE Sale Update, More

WWE

Jul 26, 2022

Vince McMahon’s Retirement “Hastened” Over Federal Investigation Into Hush Payments

As noted before, former WWE CEO and Chairman Vince McMahon announced this past Friday that he officially retired from the company. Prior to his announcement, WWE’s Board of Directors had been investigating McMahon over allegations of sexual misconduct and hush money settlement payments towards several former female employees and talent.

The Wall Street Journal reported that their sources stated that McMahon’s retirement was “hastened” due to a recent Federal investigation over his secret “hush money” settlement payments. This investigation revolved around WWE recently discovering that around $14.6 million had not been accounted for in WWE’s fiscal reports from 2006 to 2022. While WWE stated that the money was not from WWE’s funds and instead from McMahon’s own personal funds, this reportedly triggered investigations by both the Securities and Exchange Commission and federal prosecutors. This investigation was mentioned in a recent 8-K filing made by WWE on Monday to the SEC.

Portion of WWE’s 8-K filing:

The Company has made a preliminary determination that certain payments that Vince McMahon agreed to make during the period from 2006 through 2022 (including amounts paid and payable in the future), and that were not recorded in the WWE consolidated financial statements, should have been recorded as expenses in the quarters in which those agreements were made (the “Unrecorded Expenses”). As of the date hereof, the Company has identified Unrecorded Expenses totaling approximately $14.6 million. All payments underlying the Unrecorded Expenses were or will be paid by Vince McMahon personally.

The Company has also received, and may receive in the future, regulatory, investigative and enforcement inquiries, subpoenas or demands arising from, related to, or in connection with these matters.

WWE Reportedly Changes Wording on Vince McMahon’s Departure

WWE recently updated their official wording on Vince McMahon’s recent departure from the company, according to PWInsider.

Mike Johnson reported that in a filing sent to the Securities and Exchange Commission on Monday, WWE stated that McMahon’s departure from the company is now officially considered to be a resignation. WWE previously announced that McMahon’s departure was due to his retirement.

Portion of WWE’s official filing:

On July 22, 2022, Vincent K. McMahon informed the Company and its Board of Directors (the “Board”) of his resignation from his positions as Chief Executive Officer, Chairman and director of the Company, effective immediately.

Johnson reported that from a business perspective, WWE likely considers a retirement and a resignation to be the same thing but decided to use the term resignation for their official filing to the SEC.

In a separate report, Johnson reported that WWE also recently removed McMahon’s profile from their corporate leadership page on their official corporate website.

Google Searches, WWE Stocks, & Future WWE Sale Status Update

The Wrestling Observer’s Dave Meltzer reported in Sunday’s Daily Update that Vince McMahon’s retirement announcement this past Friday generated around 200,000 searches and a #5 ranking on Google for that day.

Fightful’s Jeremy Lambert reported that WWE’s stocks closed at $71.81 per share after Monday’s trading, up 8.44% compared to Friday’s closing number of $66.25 per show. Lambert reported that WWE’s announcement of McMahon’s retirement was made shortly before Friday’s trading closed meaning that Wall Street responded favorably to his departure from the company. Lambert also reported that this was the highest price for WWE’s stocks since 2019.

In regards to WWE’s stock price increase, CNBC reported that capital marketing firm Loop Capital recently upgraded their outlook on WWE’s stocks to “buy” status and raised its price target from $59 per share to $90 per share. The reason reportedly was due to their currently belief that McMahon’s departure now increases the probability of a sale of the company in the future. The report stated that “Part of WWE’s overperformance this year may stem from heightened investor sentiment for a possible sale. Loop Capital upgraded WWE shares to a “buy” rating Monday and raised its price target on shares to $90 from $59 “based on a greater likelihood that the company is sold with Vince McMahon stepping down.”