Vince McMahon is the subject of a new op-ed by the Los Angeles Times. The article looks at McMahon’s legacy of running WWE, the Endeavor merger, and if his time with the company is coming to a close.
McMahon currently serves as the Executive Chairman of WWE’s parent company TKO Group Holdings. He previously served as Chairman, CEO and controlling shareholder of WWE.
The WWE/UFC merger under TKO was completed as federal government investigations against McMahon were ongoing. McMahon is being investigated for allegedly paying millions in hush money to several women to keep them quiet about sexual misconduct allegations. A search warrant was executed on July 17 but no charges have been filed against McMahon.
Records show McMahon has reimbursed WWE approximately $17.4 million related to the respective investigations into the allegations as of August.
What’s Next?
It was noted that the WWE/UFC/TKO merger “carries risks.” This includes the possibility that Vince McMahon will still face consequences as a result of ongoing government investigations. The status and scale of those investigations are unclear. But it could be “much broader than the one company and its one majority shareholder,” said 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.
An August SEC filing showed WWE had “received voluntary and compulsory legal demands,” from multiple agencies concerning the investigation and “related subject matters.” Depending on the potential results of the investigation, Frenkel said McMahon could face both criminal and civil liabilities. This would prevent him from serving as “an officer or director of a public company, as well as a clawback of any ‘ill-gotten gains.’”
It should be noted that the penalties against Vince McMahon are hypothetical and remain contingent on the ongoing federal investigation. Representatives of the SEC and the U.S. Attorney for the District of Connecticut, declined to comment when asked by the Times.
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