The Los Angeles Times has a new piece on WWE Founder & TKO Executive Chairman Vince McMahon, going over the scandals from his career and the recent Endeavor acquisition.
The article also touched on the government investigations into McMahon’s conduct, which were launched following the hush money scandal in early 2022. It was noted that depending on what the SEC (Securities & Exchange Commission) and the DOJ (Department of Justice) find in their investigations, McMahon may end up facing criminal and/or civil liabilities that could prevent him from serving as an officer or director of a public company, such as TKO.
It was acknowledged that the nature and the scope of the ongoing government investigations remain unclear, but attorney Jacob Frenkel, Chair of Dickinson Wright’s Government Investigations & Securities Enforcement Practice Group and a former senior counsel in the SEC’s Division of Enforcement, noted that the inquiry could be “much broader than the one company and its one majority shareholder.”
In addition to potential criminal and/or civil liabilities, Frenkel said McMahon could also face more financial repercussions – a clawback of any “ill-gotten gains.”
Earlier this year McMahon used his majority voting power to return to the company and override a unanimous vote opposing his return by the WWE Board of Directors. It was announced then that two Board members, Ignace Lahoud and Man Jit Singh, immediately resigned. Lahoud spoke with The Times and said he found the explosion of allegations against McMahon disconcerting, and did not believe McMahon’s return was judicious.
“It wasn’t aligned with my way of seeing what governance is,” Lahoud said, adding, “There was a misalignment with what my values are.”
The Times also briefly covered the Montreal Screwjob from 1997 and the death of Owen Hart in 1999. It was noted how the Hart Family sued WWE for wrongful death, and the company eventually settled for $18 million. Martha Hart, Owen’s widow, spoke to The Times and said WWE tried to move the case from Kansas, where Owen died, to Connecticut, where WWE is based. She also commented on WWE’s “dark, enduring” history.
“They put profit over the well-being of my husband Owen,” Martha said. “I doubt much has changed. The WWE has a dark, enduring history.”
Regarding the recent Endeavor acquisition to merge WWE and UFC into TKO, it was noted that the deal came about quickly. McMahon considered potential suitors including Liberty Media and Saudi Arabia’s Public Investment Fund, but TKO/Endeavor CEO Ari Emanuel and TKO/Endeavor President & COO Mark Shapiro made a pilgrimage to WWE HQ in Stamford this past spring. The deal was finalized within weeks, while in the conference suites at SoFi Stadium during WrestleMania 39.
The SEC and the U.S. Attorney for the District of Connecticut declined to comment to The Times. McMahon and Emanuel declined The Times’ request for comments on the investigations into McMahon, according to a TKO spokesperson. A TKO spokesperson also said McMahon declined to comment on Hart and the Montreal Screwjob, and the company declined to comment on Martha’s claim. Furthermore, a TKO spokesperson declined to comment on the recent lawsuit filed by
former WWE writer Britney Abrahams.Stay tuned to WrestlingHeadlines.com for more.
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