TKO, the company that owns WWE, has just revealed the financial fallout it faced last year from WWE’s 2022 investigation into Vince McMahon’s alleged misconduct, and how much power he currently has at the company. TKO also confirmed who will be replacing McMahon’s role on its board of directors amid his resignation last month, which took place shortly after a lawsuit was filed against him accusing him of sexual assault.
In June 2022, WWE’s Special Committee launched an investigation into McMahon’s alleged sexual misconduct and hush money payments he allegedly gave to a departing employee. The investigation has cost WWE over $27 million in 2022, and it continues to face additional costs from ongoing/additional claims related to the allegations, despite the investigation concluding sometime in 2022, according to a Feb. 27 filing with the U.S. Securities and Exchange Commission.
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“Professional costs resulting from WWE’s Special Committee’s investigation have been significant and are expected to continue to be significant as the Company continues to incur costs arising from ongoing and/or potentially new regulatory, investigative and enforcement inquiries, subpoenas and demands and claims,” said the company in the SEC filing. “We expect Mr. McMahon to reimburse the Company for reasonable expenses incurred in connection with the investigation.”
TKO also claims that McMahon has already reimbursed the company $5.8 million in costs related to the investigation in 2023.
McMahon resigned from TKO as executive chair and member of the board or directors last month shortly after a former WWE employee filed a lawsuit against him and former wrestler John Laurinaitis, accusing them both of “physical and emotional abuse, sexual assault and trafficking at WWE.”
In TKO’s new statement about Vince McMahon’s allegations in the SEC filing, the company finally revealed who will replace him on its board of directors.
“On February 22, 2024, following Vincent McMahon’s resignation from the position of Executive Chair of the Board in January 2024, the Board appointed Ariel Emanuel, the Company’s Chief Executive Officer, as Executive Chair of the Board,” said the company in the filing. “In addition, the independent directors of the Board established the position of Lead Independent Director and appointed Steven R. Koonin to serve in such role. Both appointments became effective as of February 22, 2024.”
The SEC filing also revealed that at TKO, McMahon currently "controls a significant portion of the voting power of the issued and outstanding shares of the Company’s common stock,” despite his Jan. 26 resignation.
McMahon currently owns around 24.7% of TKO and holds over 20 million shares of its stock, according to the SEC filing. He also has 11.8% voting power at the company. When a stockholder has voting power at a company, it allows them to vote on certain corporate actions such as starting a new merger or acquisition or electing new board members, etc.
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