Vince McMahon subpoenaed, comments in all staff message denying intentional wrongdoing

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PHOTO: CNBC

WWE disclosed today that Vince McMahon was subpoenaed on July 17.

From WWE’s new 10-Q (the long quarterly report filed with the SEC):

As previously disclosed on June 17, 2022, a Special Committee of the Board of Directors was formed on June 15, 2022 to investigate allegations of misconduct by Vince McMahon. As previously disclosed, the Special Committee investigation was completed during the fourth quarter of 2022. However, related government investigations remain ongoing.

On July 17, 2023, federal law enforcement agents executed a search warrant and served a federal grand jury subpoena on Mr. McMahon. No charges have been brought in these investigations.

The Company has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters.

Seemingly the subpoena and search are related to the various NDA payments and payments to Donald Trump for TV performances, that were improperly not recorded as company expenses.

WWE sent a message today to all staff with comments from Vince McMahon and an official comment from WWE itself.

McMahon’s comment:

In 2022, WWE formed a special committee to review allegations of misconduct against me. That review was concluded in November 2022 following an extensive investigation. Throughout this experience, I have always denied any intentional wrongdoing and continue to do so. I am confident that the government’s investigation will be resolved without any findings of wrongdoing. I am focused on completing the recovery process from my recent spinal surgery and on closing our transaction with Endeavor, which will create one of the preeminent global sports and entertainment brands.

WWE’s official comment:

We believe this is a continuation of the investigation that commenced last summer. WWE has cooperated throughout and fully understands and respects the government’s need for a complete process.

A year ago, the Wall Street Journal, among its other reports on the scandal surrounding McMahon, reported that federal investigations contributed to McMahon’s decision to resign from all roles with the company in July 2022. WWE itself had already and has repeatedly confirmed the existence of federal investigations related to the matter.

On July 25, 2022, the Journal reported:

The Securities and Exchange Commission and federal prosecutors have launched inquiries into payments made by Mr. McMahon to settle allegations of sexual misconduct, the people [familiar with the matter] said. [WWE] said Monday [July 25, 2022] that it has received “regulatory, investigative and enforcement inquiries, subpoenas or demands” in connection with millions of dollars in hush-money pacts.

“We continue to fully cooperate with any investigation,” WWE CEO Nick Khan said when asked during analyst Q&A. “Outside of that, we’re not going to comment on any legal matter.”

Khan confirmed earlier in the call that McMahon is recovering from spinal surgery and said McMahon is on medical leave.

“Our founder Vince McMahon underwent major spinal surgery.” Khan said during his opening remarks.” While remaining the executive chairman of WWE, Vince decided to take a medical leave of absence to focus on his physical recovery. We wish Vince the best in his recovery and will respect his privacy as it related to this medical matter.”

There were no further details on how this will affect McMahon’s influence on WWE’s creative or other aspects of the business.

John Pollock & Brandon Thurston will discuss the WWE earnings call and other wrestling business news live at 2:30 pm ET today (Tuesday). Audio and video will be available for free afterward, on POST Wrestling‘s and on Wrestlenomics‘ YouTube channel, as well as our free podcast feeds.

Brandon Thurston
brandon@wrestlenomics.com