Vince McMahon Could Hold WWE Hostage With New Media Rights Deal

Vince McMahon has been planning to return to the WWE. Those rumors escalated quickly, and it was soon reported that the former Chairman was planning to return and sell the company. He has a plan to leverage the company’s upcoming media rights as a way to usher in his comeback, and the process already started.

Vince McMahon recently released a press release where he informed the WWE board of directors that unless he has direct involvement as Executive Chairman, he won’t support or approve any media rights deal or sale. As we reported earlier, Vince McMahon is a majority shareholder and also has majority voting power that allows him to make decisions concerning the company’s internal matters.

The board responded last month in a letter to Mr. McMahon that it was prepared to initiate a review process and would welcome working with him on it. However, it said it unanimously agreed that Mr. McMahon’s return to the business wouldn’t be in shareholders’ best interest, according to people familiar with the letters.

Essentially, no television deal can be struck, no matter how lucrative, unless Vince McMahon approves it. He is majority shareholder, even though he is “retired.” He is doing this under the guise of WWE’s shareholder’s “best interests,” but in the end, Vince McMahon could be reinstated.

In the statement, it reflected that, “the board responded last month in a letter to Mr. McMahon that it was prepared to initiate a review process and would welcome working with him on it. However, it said it unanimously agreed that Mr. McMahon’s return to the business wouldn’t be in shareholders’ best interest, according to people familiar with the letters.”

It was also said that Vince McMahon “has communicated to the board that unless he has direct involvement as executive chairman from the outset of a strategic review, he won’t support or approve any media-rights deal or sale, the people said.” Essentially, the company will not get sold and no media rights deals period unless he gets his way.

Based on the press release, it seems like Vince McMahon is holding the WWE hostage until he gets what he wants, which is to be reinstated as Executive Chairman. Once he is reinstated as Executive Chairman, he could make any move within WWE that he wishes.

We will have to wait and see if the board decides to give in. Stay tuned to Ringside News as we keep you updated on this story as it develops.

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