Vince McMahon made several headlines back in June after it was revealed that he secretly paid $3 million as hush money deal to a departing WWE employee. McMahon was under investigation right after this, and he had to retire. Now the investigation has concluded, and the company has 100% confirmed this.
It was eventually revealed that McMahon paid $12 million in hush money to quite a few women over the last twenty years. In the end, this proved to be the nail in the coffin for McMahon, as his career in WWE was officially over.
In fact, an additional $5 million dollars of unrecorded expenses were linked to Vince McMahon. In the 2022 third-quarter earnings report, WWE announced that the investigation has completed, and the Special Committee has been disbanded. The investigation cost WWE $19.4 million in total.
Special Committee Investigation
As previously announced, a Special Committee of independent members of the Board of Directors was formed to investigate alleged misconduct by Vincent K. McMahon, the Company’s former Chairman and Chief Executive Officer, who resigned from all positions held with the Company on July 22, 2022 but remains a stockholder with a controlling interest, and another executive, who is also no longer with the Company. The Special Committee investigation is now complete and the Special Committee has been disbanded. Management is working with the Board to implement the recommendations of the Special Committee related to the investigation. For the three and nine-month periods ended September 30, 2022, the Company’s consolidated pre-tax results include the impact of $17.7 million and $19.4 million, respectively, associated with certain costs related to the investigation. Please see the Company’s SEC filings, including, but not limited to, its annual report on Form 10-K/A and quarterly reports on Form 10-Q/A and Form 10-Q for further details and ongoing risks regarding this matter.
Triple H took over as head of WWE Creative and since then, has made several changes to WWE. We’ll have to wait and see what’s next in store for the company. Now this situation is apparently behind them, but the ramifications will likely last forever.
What’s your take on the investigation? Sound off in the comments!