Last month, Vince McMahon resigned from his position at TKO Group after a lawsuit from former WWE employee Janel Grant accused him of sex trafficking, sexual assault, and more. WWE and John Laurinaitis are also named as defendants in the lawsuit.
Vince McMahon is no longer in a position of power in TKO and WWE but he still holds a lot of voting power as a shareholder, something Mark Shapiro has addressed.
However, as noted in TKO’s 10-K filing with the SEC, McMahon owns 20 million shares worth of stock.
During the TKO 4Q earnings call, TKO CEO Mark Shapiro spoke about McMahon’s stock ownership and how he plans to handle the matter. He said,
“Obviously, we’re talking about Vince McMahon, specifically, in terms of cashing stock. He still holds, I believe, 20 million shares. It’s all registered. He’ll do whatever he is going to do and we’re on the sidelines, we’ll have a look, we’ll see, we have no idea on timing.
We’re not having a discussion with him. He’s given us no point of view on his motive or if he plans to sell or not sell or if he does, how much. We’re going to wait around and find out, just like you.”
The 10-K filing noted that McMahon “has agreed to make future payments to certain counterparties personally” but that the company, following SEC rules, “concluded that these amounts should be recognized by the Company as expenses in the period in which they become probable and estimable.”
It was further noted that TKO “assumed $3.5 million of liabilities related to future payments owed by Mr. McMahon to certain counterparties, of which $2.0 million was paid directly by Mr. McMahon during the period of September 12, 2023 through December 31, 2023. During the period of September 12, 2023 through December 31, 2023, the Company recorded $3.5 million of expenses associated with payments made directly by Mr. McMahon to certain counterparties. These costs are included within selling, general and administrative expenses in our consolidated statements of operations. Additionally, during the period of September 12, 2023 through December 31, 2023, the Company recorded $3.5 million of costs associated with payments made directly by Mr. McMahon related to WWE’s global headquarters lease. These costs are included within finance lease right-of-use assets, net in our consolidated balance sheets. These payments are considered non-cash capital contributions and are included as a component of principal stockholder contributions in our consolidated statements of stockholders’/members’ equity. As of December 31, 2023, total liabilities of $1.5 million are included within accrued expenses in our consolidated balance sheets related to future payments owed by Mr. McMahon to certain counterparties.”
In connection with the investigation into McMahon’s scandal, the disgraced billionaire has reimbursed TKO for $5.8 million in costs.
Vince McMahon’s Stock Ownership and Future Plans at TKO Group
Last month, Vince McMahon made headlines when he resigned from his position at TKO Group following a lawsuit filed by former WWE employee Janel Grant. The lawsuit accused McMahon of sex trafficking, sexual assault, and other serious allegations. Both WWE and John Laurinaitis were also named as defendants in the lawsuit, which has sent shockwaves through the wrestling industry.
While McMahon may no longer hold a position of power in TKO and WWE, he still retains a significant amount of voting power as a shareholder. According to TKO’s recent 10-K filing with the Securities and Exchange Commission (SEC), McMahon owns 20 million shares of stock in the company.
During TKO’s fourth-quarter earnings call, TKO CEO Mark Shapiro addressed McMahon’s stock ownership and how the company plans to handle the matter. Shapiro stated, “Obviously, we’re talking about Vince McMahon, specifically, in terms of cashing stock. He still holds, I believe, 20 million shares. It’s all registered. He’ll do whatever he is going to do, and we’re on the sidelines, we’ll have a look, we’ll see, we have no idea on timing.”
Shapiro further emphasized that TKO has not had any discussions with McMahon regarding his intentions or plans for selling his shares. The company is waiting to find out McMahon’s next move, just like everyone else.
The 10-K filing also revealed that McMahon has agreed to make future payments to certain counterparties personally. However, following SEC rules, TKO has recognized these amounts as expenses in the period in which they become probable and estimable.
TKO assumed $3.5 million of liabilities related to future payments owed by McMahon to certain counterparties. During the period from September 12, 2023, to December 31, 2023, McMahon paid $2.0 million directly, and TKO recorded $3.5 million in expenses associated with these payments. These costs are included within selling, general, and administrative expenses in TKO’s consolidated statements of operations.
Additionally, TKO recorded $3.5 million of costs associated with payments made by McMahon related to WWE’s global headquarters lease. These costs are included within finance lease right-of-use assets in TKO’s consolidated balance sheets. These payments are considered non-cash capital contributions and are included as a component of principal stockholder contributions in TKO’s consolidated statements of stockholders’ equity. As of December 31, 2023, total liabilities of $1.5 million related to future payments owed by McMahon are included within accrued expenses in TKO’s consolidated balance sheets.
In connection with the ongoing investigation into McMahon’s scandal, the disgraced billionaire has reimbursed TKO for $5.8 million in costs. This reimbursement highlights the financial impact of the allegations on both McMahon and the company.
As the situation continues to unfold, it remains uncertain how McMahon’s stock ownership will be handled and what his future plans may entail. Shareholders and fans alike will have to wait for further developments to gain clarity on this matter.