It’s been a wild year for Vince McMahon, WWE, and its fans after McMahon was forced to step down from his role in the company last year due to the hush money scandal, only to force his way back in January and then agree to be acquired by Endeavor and merge WWE with the UFC into the TKO Group Holdings company.
The merger was completed despite the federal government investigations into payments made by McMahon in connection to the hush money scandal last summer that were not recorded in WWE’s annual accounts.
McMahon allegedly paid at least $14.6 million to several women, including former WWE employees, to keep them quiet about allegations of sexual misconduct and infidelity since 2006. Another $5 million was also paid to the Donald Trump Foundation for Trump’s appearances on television in 2007 and 2009.
A search warrant was served and executed by the feds after a federal grand jury signed off on a subpoena to McMahon on July 17, although no charges have been filed against him yet.
Jacob Frenkel, the Chair of Dickinson Wright’s Government Investigations & Securities Enforcement Practice Group and a former senior counsel in the SEC’s Division of Enforcement, told the LA Times that McMahon could face criminal or civil liabilities that may force him out of his WWE role.
“Depending on the potential findings following the inquiry into Vince McMahon, McMahon could face criminal and/or civil liabilities that could prevent him from serving as an officer or director of a public company.”
Ignace Lahoud, a former WWE board member, resigned when Vince forcefully returned to the company in January.
He was quoted by stating, “It wasn’t aligned with my way of seeing what governance is and there was a misalignment with what my values are.”
Lahoud added, “He said, ‘OK, do whatever you guys need to do. I’m not going to stand in your way.’ Of course, when the board said, ‘Well, you know, we think you need to step down,’ he wasn’t happy about it, but he did it.”
Someone close to one of the outed directors said McMahon viewed its investigation as an act of disloyalty despite knowing the board was doing its job.
