The WWE shareholder trial is off the board, but that does not mean all the drama is over. Now the biggest question is simple: if money is being paid out, who is actually paying the bill?
The trial had been scheduled to begin Monday in the Delaware Court of Chancery, but it was removed from the court calendar on Friday, just days before things were supposed to get started. Tamara Burton, the Court Administrator for the Delaware Court of Chancery, confirmed to POST Wrestling’s Brandon Thurston on Saturday evening that the trial is no longer moving forward as scheduled.
The case centers on WWE’s 2023 merger with UFC to form TKO Group Holdings. The plaintiffs alleged that WWE was undervalued in the deal and named Vince McMahon, Nick Khan, Paul Levesque, George Barrios, and Michelle Wilson as defendants. They also claimed McMahon steered the transaction toward Endeavor and did not allow other potential bidders, including KKR and Liberty Media, to take part in a fair bidding process for WWE.
It has not been confirmed whether the two sides have reached a settlement. Still, on Wrestling Observer Radio, Bryan Alvarez brought up the question of how money would be distributed if WWE ends up paying a major amount. The answer was not as simple as just cutting a check.
The discussion first focused on shareholders, since any payout would go to them. Vince McMahon’s role makes that part especially interesting, because he is WWE’s largest shareholder and was also one of the defendants in the case.
“It would go to the shareholders. I don’t know how that would affect Vince because Vince is the number one shareholder. So there would probably be something in there where Vince can’t benefit from it, I’m going to guess. But yeah, the nature of distribution is very interesting.”
Then came the bigger issue: who actually pays? That part could be complicated because the lawsuit did not name WWE or TKO as defendants. It named individuals.
“And the other thing is the nature of the payment is interesting. Does WWE insurance cover it? Does Vince have to cover it? Is it a split between Vince and WWE covering it?”
That distinction matters. WWE as a company was not sued in the case, and neither was TKO. The named defendants were McMahon, Khan, Levesque, Wilson, and Barrios.
“I mean, the WWE as a company was never sued. TKO was never sued. The people who were sued were Vince McMahon, Nick Khan, Paul Levesque, Michelle Wilson and George Barrios.”
The belief is that Khan, Barrios, Wilson, and Levesque would likely be covered by WWE because they were working for the company. Vince’s situation may be different, since he is no longer with WWE.
“I think that the feeling is, is that Nick Khan, Barrios, Michelle Wilson and Levesque would all be covered by WWE since they were working for WWE. Whether Vince would be or not, I would think he’s not working for WWE, so I don’t know.”
There is another wrinkle too. Vince McMahon had his own legal team, while the other defendants were under a separate legal umbrella. That could make the payment structure one of the most important details still left to come out.
“And also they were all under one legal umbrella and Vince was under a completely different legal umbrella. You know, different legal teams for each. So how that all works out, that’s the distribution is interesting. And the nature of how the money, where the money comes from is also going to be interesting.”
The trial had been expected to run for four days with Vice Chancellor J. Travis Laster presiding. A 75-page pre-trial brief had already placed McMahon’s WWE return and his relationship with TKO CEO Ari Emanuel under the microscope. The filing claimed McMahon never intended for his July 2022 retirement to be permanent and later threatened to block any media rights deal or company transaction unless he was brought back.
For now, the trial is not happening this week. Whether that means a settlement has already been reached, one is close, or another behind-the-scenes development changed the schedule has not been confirmed. What is clear is that the next big detail may not just be the dollar amount, but whether that money comes from insurance, WWE, Vince McMahon, or some combination of those parties.
The courtroom showdown may be off, but this story still has a major financial question hanging over it. If a payout is coming, the answer to who pays could end up being just as important as the settlement itself.
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Who do you think should be responsible for paying if this case ends with a settlement? Please share your thoughts and feedback in the comment section below.
