Former WWE CEO and Chairman Vince McMahon has been directly connected to $14.6 million in unrecorded expenses as per an 8-K filing the WWE posted on Monday for its Preliminary Financial Results for 2022's Second Quarter. The filing reads, "The Company 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), and that were not recorded in the WWE consolidated financial statements, should have been recorded as expenses in the quarters in which those agreements were made (the 'Unrecorded Expenses'). As of the date hereof, the Company has identified Unrecorded Expenses totaling approximately $14.6 million. All payments underlying the Unrecorded Expenses were or will be paid by Vince McMahon personally.
"Accordingly, the Company currently anticipates that it will revise its previously issued financial statements to record the Unrecorded Expenses in the applicable periods for the years ended December 31, 2019, 2020 and 2021, as well as the first quarter of 2022, when it issues its financial statements for the second quarter of 2022," WWE's filing later added. "The Company is working with the goal of issuing such financial statements by August 9, 2022, but there is no assurance that it will be able to meet this deadline. In light of the Unrecorded Expenses and related facts, the Company expects to conclude that its internal control over financial reporting was not effective as a result of one or more material weaknesses."
The Wall Street Journal had previously reported Vince McMahon had paid more than $12 million to four former female employees in order to keep alleged sexual misconduct from becoming public. The largest of those payments was to a former wrestler whom McMahon allegedly coerced into giving oral sex. When she rejected later advances, McMahon allegedly demoted her and later declined to renew her contract. The settlement between McMahon and the wrestler wasn't reached until 2018. Other accusations from 2006, 2008 and earlier this year were also a part of the Wall Street Journal's investigation. The WSJ's reporters have also stated publicly that more information regarding the WWE Board of Directors' investigation into McMahon would be coming soon.
McMahon announced on Friday that he would be retiring from all of his positions within the WWE, though he will remain its majority shareholder. Stephanie McMahon and Nick Khan have been named Co-CEOs of WWE, Stephanie has been promoted to Chairwoman and Paul "Triple H" Levesque will now serve as Head of Talent Relations and oversee WWE's Creative team.0comments