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Report: TKO admits that Vince McMahon could be a major liability to its business

Axios has a new report going over some of the interesting stock-related tidbits they came upon while sifting through recent SEC filings made by WWE and TKO Group Holdings, the latter of which is the new company that formed as a result of WWE’s merger this month with UFC. Vince McMahon’s status with TKO is the main focus of these findings.

It’s noted that “McMahon currently holds around 28.84 million TKO shares, which was valued at $3 billion as of yesterday’s market close.” Furthermore, TKO “has registered all of McMahon’s shares for sale, thus enabling him to avoid the lockup period that applies to other TKO stockholders like Endeavor and Silver Lake.”

The report says this registration rights agreement outlined by TKO might just be about giving McMahon and/or TKO “flexibility” in light of the ongoing federal investigation into McMahon’s alleged misconduct that was widely reported on last summer related to hush money payments and ‘certain unrecorded expenses’ made by McMahon. TKO’s statement that “Vincent K. McMahon, Nick Khan and Steven R. Koonin, who are directors of TKO, will be selling stockholders in this offering,” is at least causing some folks to wonder if this is hinting at Vince’s potential exit from the company.

Axios also mentions that in another regulatory filing, TKO admitted McMahon is a potential liability to their business:

“McMahon’s membership on our Board could expose us to negative publicity and/or have other adverse financial and operational impacts on our business. His membership also may result in additional scrutiny or otherwise exacerbate the other risks described herein. Any of these outcomes could directly or indirectly have adverse financial and operational impacts on our business.”

Yeah, no shit.

What do you make of all this, Cagesiders?

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