WWE Chairman Vince McMahon made a significant payment this week toward the Board of Directors’ Special Committee investigation as part of an agreement reached between him and the company regarding the cost of the investigation.
According to a new WWE SEC filing, McMahon has personally contributed $17.4 million to the Board of Directors’ 2022 investigation into sexual misconduct allegations against McMahon and former Head of Talent Relations John Laurinaitis. The prices are valid through January 31st of this year. McMahon signed the reimbursement agreement on March 20 and made the payment on March 23, or this week’s Thursday.
McMahon also agreed to conduct a thorough review and then reimburse WWE for any additional costs incurred as a result of the same issues. The agreement includes a release of McMahon by WWE for the payment of the costs, as well as a release of the company by McMahon for the investigation and related matters.
The following information is included in the SEC filing:
Item 1.01 Entry Into a Material Definitive Agreement.
On March 20, 2023, World Wrestling Entertainment, Inc. (the “Company”) entered into a reimbursement agreement (the “Agreement”) with Vincent K. McMahon, the Company’s Executive Chairman, director and controlling stockholder. The Agreement provides that Mr. McMahon will pay the Company approximately $17.4 million to reimburse the Company for the costs that have been incurred and paid by the Company and/or its subsidiaries, through January 31, 2023, in connection with and/or arising from the investigation conducted by a special committee of the Company’s board of directors, related revisions to the Company’s financial statements and other related matters. Such payment was made on March 23, 2023. The Agreement further provides that Mr. McMahon will also review in good faith and reimburse the Company for additional costs incurred by the Company and/or its subsidiaries subsequent to January 31, 2023 (or that have been incurred by the Company and/or its subsidiaries and not yet paid as of January 31, 2023), in connection with and/or arising from the same matters.
The Agreement also includes a release of Mr. McMahon by the Company regarding the recovery of the costs described above and a release of the Company by Mr. McMahon regarding the investigation and related matters described above.
Back in December, the Board attempted to persuade McMahon to sign a letter agreeing to pay the costs and not return to WWE in exchange for a guarantee that the Board would not sue him for the same costs.
WWE reported $21.7 million in costs related to the investigation in its Q4 and Full Year 2022 earnings release in February. McMahon had agreed to reimburse the company for “reasonable expenses related to the Special Committee investigation, net of any insurance proceeds,” it was stated at the time.
McMahon returned to the company in January to assist in the management of a potential sale of the company, as well as media rights fees, as detailed below. There have been rumors that McMahon will once again assist with WWE creative, but this has not been confirmed. Vince was backstage at the RAW in Boston on March 6, his first show since “retiring” last summer.
