A new SEC filing sheds light on a hint that Vince McMahon may wish to leave WWE following Endeavor’s recent acquisition and WWE’s merger with the UFC.
The federal government is still investigating McMahon, as a search warrant was issued and executed by the government after a federal grand jury approved a subpoena for McMahon on July 17. Since 2006, however, he has not been charged in connection with the payments relating to allegations of sexual misconduct and infidelity.
As PWMania.com previously reported, Jacob Frenkel, the Chair of Dickinson Wright’s Government Investigations & Securities Enforcement Practice and a former senior counsel in the SEC’s Division of Enforcement, told the LA Times that criminal or civil liabilities against McMahon could force him out of his WWE role.
After the merger, McMahon owns 28,84,000,000 TKO shares, which are currently worth $3 billion.
AXIOS relates a story about TKO’s registration filings and explains that it allows him to avoid the lockup period that applies to other TKO stockholders, such as Endeavor and Silver Lake.
In August, TKO initially disclosed its registration plan on page 184 of an SEC filing. According to the filing, McMahon and two other TKO executives “will be selling stockholders in this offering.” This would indicate that McMahon will eventually leave the company.
In a regulatory filing, TKO stated, “McMahon’s membership on our Board could expose us to negative publicity and/or have other detrimental financial and operational effects on our business.” His membership may also result in increased scrutiny or exacerbate the other risks outlined here. Any of these outcomes could have direct or indirect negative financial and operational consequences for our company.”
McMahon was seen using a cane to get up the stairs to the stage to speak with WWE employees this week after having spinal surgery this summer.
