Marc Middleton in WWE News, WWE Rumors and Spoilers

Vince McMahon Makes Multi-Million Dollar Payment for WWE Special Committee Investigation

(Photo Credit: WWE)

WWE Chairman Vince McMahon made a significant payment towards the Board of Directors’ Special Committee investigation this week as he and the company have entered into an agreement over the cost of the investigation.

A new WWE SEC filing notes that McMahon has personally paid $17.4 million towards the Board’s 2022 investigation into sexual misconduct allegations against McMahon and former Head of Talent Relations John Laurinaitis. The costs are for a period that ran through January 31 of this year. McMahon entered into the reimbursement agreement on March 20, and made the payment on March 23, or Thursday of this week.

McMahon also agreed to review in good faith and then reimburse WWE for additional costs related to the same matters. The agreement includes a release of McMahon by WWE regarding the payment of the costs, and a release of the company by McMahon for the investigation and related matters.

The SEC filing includes the following:

Item 1.01 Entry Into a Material Definitive Agreement.

On March 20, 2023, World Wrestling Entertainment, Inc. (the “Company”) entered into a reimbursement agreement (the “Agreement”) with Vincent K. McMahon, the Company’s Executive Chairman, director and controlling stockholder. The Agreement provides that Mr. McMahon will pay the Company approximately $17.4 million to reimburse the Company for the costs that have been incurred and paid by the Company and/or its subsidiaries, through January 31, 2023, in connection with and/or arising from the investigation conducted by a special committee of the Company’s board of directors, related revisions to the Company’s financial statements and other related matters. Such payment was made on March 23, 2023. The Agreement further provides that Mr. McMahon will also review in good faith and reimburse the Company for additional costs incurred by the Company and/or its subsidiaries subsequent to January 31, 2023 (or that have been incurred by the Company and/or its subsidiaries and not yet paid as of January 31, 2023), in connection with and/or arising from the same matters.

The Agreement also includes a release of Mr. McMahon by the Company regarding the recovery of the costs described above and a release of the Company by Mr. McMahon regarding the investigation and related matters described above.

Back in December, the Board tried to get McMahon to sign a letter saying he would pay the costs, and to agree that he would not return to WWE in exchange for a guarantee that the Board would not sue him for the same costs.

WWE noted in February’s Q4 & Full Year 2022 earnings release that they racked up $21.7 million in costs related to the investigation, for the year 2022. It was noted then that McMahon had agreed to reimburse the company for “reasonable expenses related to the Special Committee investigation, net of any insurance proceeds.”

McMahon returned to the company in January to help lead a potential sale of the company, as well as media rights fees, as detailed below. There have been rumors on McMahon helping with WWE creative again, but that has not been confirmed. Vince was backstage for the March 6 RAW in Boston, his first show since “retiring” last summer.