More fallout from Vince McMahon's retirement.
According to Ted Mann and Joe Palazzolo of the Wall Street Journal, Vince McMahon's retirement was "hastened" due to federal investigations into alleged hush money paid by McMahon.
McMahon retired as WWE CEO on July 22 amid sexual misconduct and hush money allegations.
WWE posted an 8-K filing on July 25 announcing Preliminary Financial Results for the Second Quarter 2022. In the filing, it was revealed, "The Company has made a preliminary determination that certain payments that Vince McMahon agreed to make during the period from 2006 through 2022 (including amounts paid and payable in the future), and that were not recorded in the WWE consolidated financial statements, should have been recorded as expenses in the quarters in which those agreements were made (the “Unrecorded Expenses”). As of the date hereof, the Company has identified Unrecorded Expenses totaling approximately $14.6 million. All payments underlying the Unrecorded Expenses were or will be paid by Vince McMahon personally."
The Securities and Exchange Commission and federal prosecutors have launched inquiries into payments made by McMahon. In the filing, the company addressed the payment by stated WWE “has also received, and may receive in the future, regulatory, investigative and enforcement inquiries, subpoenas or demands arising from, related to, or in connection with these matters.”
On June 15, the Wall Street Journal reported the WWE board was investigating a secret $3 million settlement that McMahon reportedly agreed to pay to a departing employee with whom he allegedly had an affair, according to documents and people familiar with the board inquiry.
On July 8, the Wall Street Journal published another report stating McMahon "agreed to pay more than $12 million over the past 16 years to suppress allegations of sexual misconduct and infidelity." The payouts reportedly went to four women who were previously associated with WWE. The women reportedly "signed agreements that prohibit them from discussing potential legal claims against or their relationships."
Fightful will continue to update fans on any news regarding Vince McMahon as it is known.
