Vince McMahon Agreed To Make Unrecorded Payments Of $14.6M, WWE Says

STAMFORD, CT — World Wrestling Entertainment, Inc. said in SEC filings on Monday that former chairman and CEO Vince McMahon made unrecorded payments totaling approximately $14.6 million from 2006 through 2022.

WWE said the payments, which were made personally by McMahon, should have been recorded as expenses in the quarters in which the agreements were made.

McMahon, 76, announced last Friday that he is retiring from WWE. The announcement came several weeks after McMahon stepped down from his role as the head of the company last month following a Wall Street Journal report that the WWE's board was investigating McMahon for "a secret $3 million settlement" he agreed to pay to a former employee "with whom he allegedly had an affair."

In the days after, the WSJ also reported that McMahon reportedly paid more than $12 million to multiple women in order to silence allegations of sexual misconduct and infidelity.

The filing on Monday did not specify the recipients of McMahon's payments.

"As previously announced, a special committee of independent members of the Board is conducting an investigation into alleged misconduct by Vince McMahon, which investigation remains ongoing," the company said in the filings.

WWE said that while the payments were not material in any individual period, the aggregate amount of the $14.6 million would be material if recorded entirely in the second quarter of 2022.

"Accordingly, the company currently anticipates that it will revise its previously issued financial statements to record the unrecorded expenses in the applicable periods for the years ended December 31, 2019, 2020 and 2021, as well as the first quarter of 2022, when it issues its financial statements for the second quarter of 2022," WWE said.

WWE hopes to revise its financial statements by Aug. 9, but said "there is no assurance that it will be able to meet this deadline."

"In light of the unrecorded expenses and related facts, the company expects to conclude that its internal control over financial reporting was not effective as a result of one or more material weaknesses," WWE said. "The company continues to evaluate the appropriate accounting treatment for the unrecorded expenses, as well as its internal control over financial reporting, and its ultimate conclusions on these topics may differ from what the company currently anticipates."

The company said second-quarter revenues for 2022 are currently expected to be approximately $328 million, compared to $266 million in the second quarter of 2021.

Operating income is expected to be approximately $70 million for the second quarter this year, compared to $46 million for the same period in 2021.

Also on Monday, WWE and its Board of Directors announced the appointment of Stephanie McMahon — daughter of Vince — and Nick Khan as co-chief executive officers.

Stephanie McMahon has also been appointed chairwoman of the board, and Khan will continue to serve as a board member.

"We are grateful for the opportunity to lead WWE together with our unmatched management team," said Stephanie McMahon and Khan in a news release. "We recognize this is a tremendous opportunity and responsibility, and we look forward to serving the WWE Universe."

Additionally, WWE executive Paul "Triple H" Levesque will assume all responsibilities related to WWE’s creative, in addition to his regular duties. Levesque officially returned to an executive role with WWE last week as executive vice president, talent relations.