Today has been a whirlwind of WWE-related news, the least of it not being the 8-K Sec Filing WWE released today, which contained multiple pieces of pertinent information. In it, they released an early estimate of their second-quarter earnings as an effort to curb any potential share price drop, which proved unnecessary, as stock price in WWE actually raised following Vince McMahon’s departure. Speaking of, under Item 5.02 Departure of Directors or Certain Officers, and Item 7.01 Regulation FD Disclosure, the filing addresses said departure as a resignation from Vince, not a retirement as was publicly stated. Now, it’s been revealed that WWE will revise financial statements as they pertain to recent news.
WWE Financial Statements to Be Revised
Item 5.02: “On July 22, 2022, Vincent K. McMahon informed the Company and its Board of Directors (the “Board”) of his resignation from his positions as Chief Executive Officer, Chairman and director of the Company, effective immediately.”
Item 7.01: “On July 25, 2022, the Company issued a press release announcing its preliminary results for its second quarter ended June 30, 2022 as well as the resignation of Vince McMahon and the appointments of Stephanie McMahon and Nick Khan, a copy of which is attached as Exhibit 99.1 hereto.”
Also interesting is the final item in the release, Item 8.01, titled “Other Events.” It states that the company made a preliminary determination that certain payments that McMahon had authorized, amounting to approximately $14.6 million going all the way back to 2006, would need to be accounted for in financial statements, meaning they will be revising such statements for 2019, 2020, 2021, and the first quarter of 2022 to accurately reflect the payments McMahon made. McMahon said that he would reimburse the money himself.
This is probably the biggest news of the story so far from a business standpoint. There was much concern that if nothing new about McMahon came out, his departure could have been nothing more than a temporary measure. This pretty much shoots that idea dead. With all this easily accessible, plain as day in the financial reports, there is no possible way that Vince McMahon will ever return to power in the WWE. No investor or shareholder will ever have faith in him again, and nor will his Board of Directors, who, per Dave Meltzer of the Wrestling Observer, is still ongoing with their investigation of Vince McMahon.
Stay tuned to the Last Word on Pro Wrestling for more on this and other stories from around the world of wrestling, as they develop. You can always count on LWOPW to be on top of the major news in the wrestling world, as well as to provide you with analysis, previews, videos, interviews, and editorials on the wrestling world. You can check out an almost unlimited array of WWE content on the WWE Network and Peacock.