The Los Angeles Times has published a new piece of WWE Founder & TKO Executive Chairman Vince McMahon, detailing his career scandals as well as the recent Endeavor acquisition.
The article also mentioned the government investigations into McMahon’s behavior that were launched in the aftermath of the hush money scandal in early 2022. It was noted that, depending on what the SEC (Securities and Exchange Commission) and the DOJ (Department of Justice) discover in their investigations, McMahon could face criminal and/or civil liabilities that would bar him from serving as an officer or director of a public company, such as TKO.
Although the nature and scope of the ongoing government investigations were not disclosed, attorney Jacob Frenkel, Chair of Dickinson Wright’s Government Investigations & Securities Enforcement Practice Group and a former senior counsel in the SEC’s Division of Enforcement, stated that the investigation could be “much broader than the one company and its one majority shareholder.”
In addition to potential criminal and/or civil liabilities, Frenkel stated that McMahon could face additional financial ramifications, such as a clawback of any “ill-gotten gains.”
“Depending on the potential findings following the inquiry into Vince McMahon, McMahon could face criminal and/or civil liabilities that could prevent him from serving as an officer or director of a public company.”
McMahon returned to WWE earlier this year, using his majority voting power to override the WWE Board of Directors’ unanimous vote against his return. The resignations of two Board members, Ignace Lahoud and Man Jit Singh, were announced at the time. Lahoud told The Times that the explosion of allegations against McMahon was unsettling, and that he did not believe McMahon’s return was prudent.
“It wasn’t aligned with my way of seeing what governance is,” Lahoud said, adding, “There was a misalignment with what my values are.”
The Times also briefly covered the 1997 Montreal Screwjob and Owen Hart’s death in 1999. The Hart Family filed a wrongful death lawsuit against WWE, and the company eventually settled for $18 million. According to Martha Hart, Owen’s widow, WWE attempted to move the case from Kansas, where Owen died, to Connecticut, where WWE is based. She also spoke about WWE’s “dark, enduring” history.
“They put profit over the well-being of my husband Owen,” Martha said. “I doubt much has changed. The WWE has a dark, enduring history.”
It was noted that the recent Endeavor acquisition to merge WWE and UFC into TKO came about quickly. McMahon considered Liberty Media and Saudi Arabia’s Public Investment Fund as potential suitors, but TKO/Endeavor CEO Ari Emanuel and TKO/Endeavor President & COO Mark Shapiro made a spring visit to WWE HQ in Stamford. During WrestleMania 39, the deal was finalized in the conference suites at SoFi Stadium.
The SEC and the United States Attorney for the District of Connecticut both declined to comment to The New York Times. According to a TKO spokesperson, McMahon and Emanuel declined The Times’ request for comment on the McMahon investigations. A TKO spokesperson also stated that McMahon would not comment on Hart or the Montreal Screwjob, and that the company would not comment on Martha’s claim. A TKO representative also declined to comment on the recent lawsuit filed by former WWE writer Britney Abrahams.
