It has been a tumultuous 24 hours for Vince McMahon, as he has been slapped with allegations of sexual trafficking and misconduct from a former WWE employee. In light of this, the question of TKO possibly removing McMahon is certainly apparent.
Vince McMahon is accused of sexual trafficking and misconduct by ex-WWE employee Janel Grant. The lawsuit alleges McMahon shared explicit content without consent, involving other WWE personnel, unnamed executives, and stars, and purportedly directed her to engage in sexual activities.
As per TKO’s Certificate of Incorporation filed with the SEC last year, Vince McMahon may hold the rights to his position until he resigns, passes away, or becomes incapacitated.
“7.2 Executive Chair. Notwithstanding Section 7.1(b), Vincent K. McMahon shall serve as the Executive Chair of the Board (the “Executive Chair”) until the earliest of his death, resignation or Incapacitation. Any vacancy of the Executive Chair (which, if Mr. McMahon is the initial Executive Chair, shall initially only occur upon the death, resignation or Incapacity of Mr. McMahon) shall be filled by the Board by the affirmative vote of a majority of the Directors.”
According to Brandon Thurston, it was noted that amending the section mentioned may require a majority vote from TKO shareholders to amend the company’s Governance Agreement. Additionally, all parties, including McMahon, would need to sign off on the amendment.
While Endeavor holds the majority of votes in TKO, convincing McMahon to agree to an amendment that facilitates his removal might be challenging. Thurston provided an alternative approach, which could involve negotiating an agreement with McMahon leading to his resignation. This potentially includes the sale of his more than 20 million TKO shares, valued at over $1.7 billion at the current share price of around $87.
WWE might already be distancing themselves from Vince McMahon following the lawsuit. It remains to be seen whether Vince McMahon will end up getting removed by TKO in the end.
What do you think of this story regarding Vince McMahon? Do you feel TKO will eventually remove Vince McMahon? Let us know in the comments section below!