Vince McMahon is currently under investigation by the WWE Board of Directors for allegedly paying millions of dollars to former employees to cover up misconduct, including an affair with a former paralegal. The Wall Street Journal broke the news regarding the investigation on Wednesday and while McMahon (and John Laurinaitis, who was also accused in the report) has not directly responded, his lawyer has denied paying off the former employee at the time of her departure. WWE sent out an internal statement regarding the matter — “The Wall Street Journal has published a report about WWE with allegations that we and our Board of Directors take seriously. We are cooperating fully with the independent investigation initiated by our Board of Directors.”
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So what could this mean for the WWE going forward? Dave Meltzer discussed it on the latest episode of Wrestling Observer Radio, noting that the big thing that could legally get McMahon in trouble is if he used company funds to keep employees quiet. He could also be on the hook for giving the unnamed paralegal a raise as a result of their sexual relationship, something that directly infringes on WWE’s Code of Conduct.
But Meltzer also pointed out that McMahon can’t simply be voted out of his position as chairman and chief executive officer. He owns over a third of WWE’s Class B stock, and the voting power that affords him (just over 80%) would make it impossible for the rest of the board to vote him out. He could choose to resign from his position or be pressured by sponsors to do so.
Meltzer noted that some within the company believe McMahon will be able to survive this, while Fightful Select’s Sean Ross Sapp talked with some sources in the company who believe his job hasn’t been in this kind of jeopardy since the Steroid Trials of the 1990s.
Stay tuned for more updates on the situation as they become available. WWE is set to return to pay-per-view on July 2 with the Money in the Bank event at the MGM Grand Garden Arena in Las Vegas.
