Former World Wrestling Entertainment, Inc. (NYSE: WWE) CEO Vince McMahon is once again in the hot seat after a new U.S. Securities and Exchange Commission (SEC) regulatory filing.
What Happened: The filing disclosed another $5 million in payments made by McMahon on two separate occasions in 2007 and 2009.
This SEC filing will now delay WWE reporting its quarterly earnings.
The company released a preliminary earnings report on July 25, which shared that from the period of 2006 to 2022 there had been payments made by McMahon totaling $14.6 million. The Wall Street Journal revealed that those “hush money” payments are under investigation by federal prosecutors and the SEC for allegations of misconduct against McMahon.
Also Read: WWE Probe Of Former CEO Vince McMahon Reveals $14.6M In Unrecorded Expenses
This SEC filing divulged that the $5 million in “unrecorded expenses” wasn’t related to that investigation and was disclosed at a later date due to a flaw in the original filing: “On July 25, 2022, the Company announced that it has made a preliminary determination that certain payments that Vince McMahon agreed to make during the period from 2006 through 2022 (including amounts paid and payable in the future totaling $14.6 million) were not appropriately recorded as expenses in the Company’s consolidated financial statements. Since that time, the Company has determined that two additional payments totaling $5.0 million, unrelated to the allegations that led to the Special Committee investigation, that Mr. McMahon made in 2007 and 2009 should have been recorded in the Company’s consolidated financial statements.”
Even though McMahon retired as CEO and chairman last month, he remains the largest shareholder with a 32% stake in the company. He bought the entertainment company from his father 40 years ago and oversaw its growth into a global sports giant.
After McMahon’s retirement, his daughter Stephanie McMahon took over as chairwoman and co-CEO alongside Nick Khan. Her husband, Paul “Triple H” Levesque, is the head of WWE’s creative content department. Levesque’s department recently had a huge win after signing social media sensation Logan Paul. Since then, Paul has performed at the WWE SummerSlam, giving a performance that went instantaneously viral.
Related Story: Logan Paul Inks WWE Deal: Is It Just A Distraction From The Vince McMahon Investigation?
WWE’s Stock Performance: Even with the allegations against Vince McMahon, the stock has been able to perform extremely well this year. In the past month, the stock price has risen 15.60% which equates to a growth of $9.82 per share. In addition, the stock has risen 45.97% year-to-date and 44.86% year-over-year.
The stock is up $22.92 per share year-to-date which is stronger than most companies this year.
WWE Price Action: The stock is up 0.65% as at $72.56 per share during Wednesday's trading session, according to Benzinga Pro.
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