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WWE to restate past financial results due to ‘certain unrecorded expenses’ made by ex-CEO Vince McMahon

Vince McMahon WWE

Along with confirming their new leadership team, WWE announced some preliminary financial results for the second quarter of 2022. Those led reporters to a Form 8-K they filed with the United Stated Securities & Exchange Commission (SEC). That filing reveals the latest, and perhaps last, bombshell of the Vince McMahon hush money scandal:

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.

While this doesn’t explicitly state that McMahon used company money to compensate women he allegedly had affairs with and/or potentially abused, that’s the logical implication. What it does indicate is that WWE is facing legal action for his not disclosing those payments to investors. The updated financial statements will do that, and the newly appointed leadership team of co-CEOs Stephanie McMahon and Nick Khan will attempt to steer the company through the “regulatory, investigative and enforcement inquiries, subpoenas or demands arising from, related to, or in connection with these matters,” the filing says they’ve already and expect to continue to receive. Several class action suits are already in the works based on the initial reports of the WWE Board’s investigation into McMahon’s NDAs. That investigation is ongoing.

The 8-K also clarifies that Vince McMahon resigned from his duties at WWE, which is different from the retirement his decision was presented as publicly.

Most observers are taking this as a sign Vince is truly done, and won’t ride out the bad press from the shadows to return later. WWE stock is up in early trading today (July 25) — which may be because analysts like Alan Gould of Loop Capital believe the moves of the past few days have increased the likelihood the company will be sold.