WWE Shake-Up Exploring the Federal Raid on Vince McMahon Revealed in SEC Filing
In a delayed disclosure, World Wrestling Entertainment (WWE) revealed on Wednesday that US federal law enforcement agents executed a search warrant and served a subpoena to the company’s Executive Chairman, Vince McMahon, the previous month, as reported by Reuters.
It’s important to highlight that no charges have been filed against McMahon in connection with this incident.
According to The Sun, a raid was carried out on McMahon, 77, on July 17 in response to allegations of multiple payments made after he was accused by several women of sexual misconduct.
In their filing with the Securities and Exchange Commission (SEC) on Wednesday, WWE stated: “It has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters.”
On the same day, during the announcement of its second-quarter results, WWE disclosed that Vince McMahon has been on medical leave since July 11 due to undergoing significant spinal surgery.
Having previously served as CEO and Chairman, McMahon returned to the company’s board in January with the aim of facilitating a deal with the mixed martial arts franchise UFC, which is owned by Endeavor Group. The plan was to create a new publicly listed entertainment conglomerate with an estimated valuation of approximately $21 billion.
Last year in June, The Wall Street Journal reported that McMahon was under investigation by WWE’s board for arrangements involving $12 million in payments over the past 16 years aimed at suppressing allegations of sexual misconduct and infidelity.
McMahon is recognized for transforming WWE from a regional player in the fragmented industry of the 1980s into a global powerhouse.
WWE’s second-quarter revenue experienced a 25% increase to $410.3 million compared to the previous year, surpassing estimates of $398.9 million, as indicated by Refinitiv data. Additionally, its profit of 91 cents per share was consistent with estimates.
In premarket trading, the company’s shares saw an almost 2% increase, following a year-to-date rise of approximately 52%.
The revenue from WWE’s Live Events segment surged by 51%, attributed to strong demand for both domestic and international events like WrestleMania, Backlash, and Night of Champions.
