WWE Reveals Ex-CEO Vince McMahon’s Expenses, to Restate Results

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April 3, 2022; Arlington, TX, USA; WWE owner Vince McMahon enters the arena during Wrestlemania at AT&T Stadium. Mandatory Credit: Joe Camporeale-USA Today Sports

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July 25 (Reuters) – World Wrestling Entertainment Inc has announced that it will restate some of its financial results after discovering unrecorded expenses made by former CEO Vince McMahon, who resigned last week following a allegations of misconduct.

The expenditures total $14.6 million and were made from 2006, the company said in a regulatory filing Monday. He would review the financial statements for the fiscal years ended 2019, 2020 and 2021, as well as the first quarter of 2022.

McMahon, 76, who turned WWE into an entertainment powerhouse with more than $1 billion in annual revenue after buying the company from his father in 1982, stepped down as CEO and chairman on Friday. Read more

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He is under investigation by WWE’s board of directors for $12 million payout deals over the past 16 years to suppress allegations of sexual misconduct and infidelity, the report reported. Wall Street Journal. The probe is underway, according to the company.

The exit, which several industry insiders considered inconceivable until a few days ago, saw his daughter Stephanie McMahon become the co-CEO along with Nick Khan. Vince’s son-in-law, Paul Levesque, has been named WWE’s creative chief.

In the filing, the company said it “has also received and may in the future receive regulatory, investigative and enforcement inquiries, subpoenas or demands arising out of, related to or in connection with relationship to these issues.

He did not immediately respond to a request asking for more details.

WWE said it expects second-quarter revenue to be around $328 million, which has estimates above the market of $311.9 million, according to refining data. . Its shares rose 6.5%.

“People are trying to ask if Vince, by giving up his operational and management responsibilities, is serving as a canary in the coal mine for a potential suitor coming here to take over the business,” said Northcoast Research analyst John Healy.

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Report by Tiyashi Datta and Praveen Paramasivam in Bengaluru; Editing by Aditya Soni

Our standards: The Thomson Reuters Trust Principles.

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