WWE Chairman and CEO Vince McMahon speaks at a news conference announcing the WWE Network on the 2014 International CES in Las Vegas.
The Securities and Exchange Commission and federal prosecutors have launched probes into payments made by World Wrestling Entertainment CEO Vince McMahon to settle allegations of sexual misconduct, in line with a latest report from The Wall Street Journal.
The WWE on Monday disclosed $14.6 million in previously unrecorded expenses paid personally by McMahon, who announced his retirement Friday. The corporate also hinted that the misconduct allegations, already the topic of an ongoing independent review overseen by the board of directors, are under investigation by other entities, but didn’t specify which agencies.
In response to The Wall Street Journal, these federal investigations into McMahon hastened his retirement from the corporate. McMahon, 76, is the most important shareholder in the corporate, with an roughly 32% stake.
CNBC has reached out to the WWE for comment.
McMahon allegedly paid nearly $15 million to women from 2006 through this yr to make sure their silence over alleged affairs and misconduct. The WWE said it will reflect the unrecorded expenses in updated reports for 2019, 2020 and 2021, in addition to this yr’s first quarter, when it reports second-quarter earnings.
The corporate was set to report Aug. 9, however the revisions could delay that, WWE said.
Shares of WWE rose greater than 8% to succeed in a latest 52-week high Monday, as investors became more bullish a few potential sale of the wrestling and media company. The stock is up 45% up to now this yr, outpacing the S&P 500, which is off greater than 16% in 2022.