LAS VEGAS, Nevada – JULY 02: Vince McMahon, Stephanie McMahon and Triple H attend the UFC 276 event at T-Mobile Arena on July 02, 2022 in Las Vegas, Nevada.
Jeff Botari | UFC | Getty Images
world Wrestling Entertainment on Monday disclosed $14.6 million in previously unrecorded expenses personally paid by top shareholder Vince McMahon, who announced retirement on Friday As she is being investigated for sexual misconduct claims.
WWE also indicated that the allegations of misconduct, already the subject of an ongoing independent review overseen by the company’s board, are being investigated by other entities.
“The Company has also received, and may in the future receive, regulatory, investigative and enforcement inquiries, subpoenas or requisitions relating to, or in connection with, these matters,” WWE said in an SEC filing on Monday morning,
The payout is $2.6 million more than the amount reported by The Wall Street Journal earlier this month. McMahon allegedly paid that money to the women from 2006 to this year to ensure their silence on the alleged cases and misconduct.
The company said it expected to conclude that “its internal control over financial reporting was not effective as a result of one or more material vulnerabilities.” WWE said it will reflect updated reports for 2019, 2020 and 2021, as well as unregistered expenses in the first quarter of this year, when it reports second-quarter earnings. The company was set to report on August 9, but the revision could be delayed, WWE said.
McMahon is the company’s largest shareholder with approximately 32% stake. WWE stock rose nearly 7% on Monday morning. That’s more than 30% this year, even though the S&P 500 is down about 15% so far in 2022.
With disclosure leadership change. Stephanie McMahon, who is Vince McMahon’s daughter, will serve as chairman and co-CEO. The company’s president, Nick Khan, will also serve as co-CEO.
Vince McMahon’s son-in-law, Paul Levesque, aka “Triple-H,” will take over creative control of the company, which the elder McMahon spun off earlier this month. It marks a return from a hiatus for Levesque after a “cardiac incident”. Reported by Sports Illustrated, It also expands its role from executive vice president of talent relations. Levesque is married to Stephanie McMahon.
Vince McMahon remains the majority shareholder of the company with approximately 32% of the stock, keeping a tight grip on the company.
WWE, which included broad disclosures about McMahon as well as optimistic preliminary second-quarter earnings estimates, reported $69.8 million in operating income during the second quarter, up from $46.3 million in the same period last year.
— CNBC’s Alex Sherman contributed to this report.