WWE executive chairman Vince McMahon is going on leave, right as the company looks to close its blockbuster merger with the UFC. At the same time, McMahon is facing continued scrutiny over the alleged hush money payments that were the focal point of an internal investigation led by the company’s board last year.
In the WWE’s 10-Q filing Wednesday morning, the company disclosed in a footnote that “on July 17, 2023, federal law enforcement agents executed a search warrant and served a federal grand jury subpoena on Mr. McMahon. No charges have been brought in these investigations.”
The company had previously said that it had received requests for documents and other information from regulators and law enforcement, and that it was cooperating with those requests. However, a search warrant suggests that the investigation is ongoing and active.
Also in a footnote Wednesday, the company disclosed that McMahon, who rejoined the WWE as executive chairman early this year, is on medical leave “until further notice.”
“On July 21, 2023, Mr. McMahon went on medical leave after undergoing major spinal surgery,” the company wrote. “Mr. McMahon will remain on medical leave until further notice but will remain Executive Chairman of the Company.”
In March, McMahon reimbursed the WWE $17.4 million for costs associated with the board’s misconduct investigation. Costs associated with the investigation have continued to be incurred.
“In 2022, WWE formed a special committee to review allegations of misconduct against me. That review was concluded in November 2022 following an extensive investigation,” McMahon said in a statement. “Throughout this experience, I have always denied any intentional wrongdoing and continue to do so. I am confident that the government’s investigation will be resolved without any findings of wrongdoing. I am focused on completing the recovery process from my recent spinal surgery and on closing our transaction with Endeavor, which will create one of the preeminent global sports and entertainment brands.”
McMahon stepped down as CEO of the WWE last year, handing day-to-day-control to his daughter Stephanie McMahon and Nick Khan. However, he remained the controlling shareholder in the company.
In a stunning move early this year, McMahon used his controlling stake to place himself and two others on the company’s board, and announced that he would ask the company to look into strategic alternatives.
He was subsequently named executive chairman of the WWE, and the company announced a deal with Endeavor to merge with its UFC business and create a dedicated standalone sports company, TKO Inc. That deal is still on track to close in the next few months.
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