Vince McMahon Investigation Could Cost WWE $10 Million
WWE is counting the cost of Vince McMahon's transgressions as Chairman and CEO.
WWE anticipates its ongoing investigation into Vince McMahon will cost the company around $10 million in 2022.
This was revealed in the SEC filing accompanying the promotion's Q2 2022 financial results. Released on Monday, the document notes the possibility of associated costs ultimately exceeding the predicted $10 million.
WWE has thus far poured $1.7 million into its investigation into McMahon, as noted on page 31, note 3:-
... $1.7 million of certain costs associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors.
On page 43, WWE noted the $10 million figure:-
As previously announced, a Special Committee of independent members of the Company’s Board of Directors was formed to investigate alleged misconduct by the Company’s former Chairman and Chief Executive Officer, Vincent K. McMahon. The Special Committee investigation is substantially complete. Mr. McMahon resigned from all positions held with the Company on July 22, 2022 but remains a stockholder with a controlling interest. While we currently anticipate spending approximately $10 million during the remainder of the year related to this investigation, the related costs could exceed this estimate.
McMahon's resignation, though originally stated as a "retirement", came amidst allegations he had paid over $12 million to suppress allegations of sexual misconduct between 2006 and 2022. WWE has since uncovered around $20 million in unrecorded company expenses paid out by Vince during his tenure as Chairman and CEO, necessitating adjustments to prior financial reports.
Vince had been under investigation by WWE's Board of Directors for several months at the time of his departure. It is believed that the promotion knew of the allegations made against him as early as April.