Federal law enforcement agents took action last month by executing a search warrant and serving a federal grand jury subpoena to WWE Executive Chairman Vince McMahon, as revealed in a recent regulatory filing. At the same time, McMahon is currently on medical leave from his role at the sports entertainment company due to a recent spinal surgery.
According to WWE’s filing with the Securities and Exchange Commission, ongoing government investigations involving McMahon have not resulted in any charges being brought against him. However, the company stated that it has received both voluntary and compulsory legal demands for documents related to the investigation and associated matters from federal law enforcement and regulatory agencies.
Last year, The Wall Street Journal reported that WWE was conducting an investigation into an alleged $3 million payment made by McMahon to a female employee who was departing the company following a consensual affair. WWE’s probe into the misconduct allegations was completed in the previous year.
The announcement of McMahon’s surgery came during the second-quarter earnings call conducted by CEO Nick Khan, who disclosed that the Chairman had recently undergone significant spinal surgery. As a result, McMahon is taking a leave of absence to prioritize his recovery, though the duration of his leave was not specified.
In terms of financial performance, World Wrestling Entertainment Inc. reported earnings of $52 million, or 67 cents per share, for the quarter. After excluding one-time costs, earnings were 91 cents per share, falling 2 cents short of the expectations of analysts polled by Zacks Investment Research. The company achieved a quarterly record revenue of $410.3 million, surpassing Wall Street’s estimate of $398.5 million. Notably, revenue from live events experienced a remarkable 51% increase during the period ending June 30.
WWE’s collaboration with UFC resulted in the announcement of a new publicly listed company called TKO Group Holdings, with the deal expected to conclude in the latter half of the year.
As the Endeavor deal advances as planned, WWE continues to focus on its domestic media rights for its weekly television programs. Presently, “Smackdown” airs on Fox, while “Raw” and “NXT” are featured on USA Network. Khan shared during the earnings call that other prominent companies, including Disney and Amazon, have expressed interest in the media rights, and discussions are progressing positively.
Throughout the quarter, WWE’s viewership showed promising growth, with “Smackdown” seeing a 26% rise in the 18-49 demographic, “Raw” climbing 19%, and “NXT” experiencing an impressive 49% surge in the same demographic. The incorporation of top stars like Seth Rollins and Rhea Ripley into “NXT” contributed to its increased appeal.
Read the full article at: Breaking News: Federal Agents Target WWE’s Vince McMahon with Subpoena
