Vince McMahon Likely To Be Forced Down As WWE Chairman Following Federal Govt Investigation
The past year has been quite eventful for Vince McMahon, WWE, and its fans. McMahon had to step away from his role in the company due to a scandal involving secret payments. However, he managed to return in January and later agreed to merge WWE with the UFC under the TKO Group Holdings company.
This merger went through, even though the federal government was investigating McMahon’s undisclosed payments related to the scandal that occurred last summer. These payments were not included in WWE’s annual financial reports.
It is alleged that McMahon paid over $14.6 million to several women, including former WWE employees, to keep them from talking about accusations of sexual misconduct and infidelity dating back to 2006. Additionally, he paid $5 million to the Donald Trump Foundation for Trump’s appearances on television in 2007 and 2009.
On July 17, federal authorities executed a search warrant after a federal grand jury approved a subpoena for McMahon. However, as of now, no charges have been filed against him.
Jacob Frenkel, the Chair of Dickinson Wright’s Government Investigations & Securities Enforcement Practice Group and a former senior counsel in the SEC’s Division of Enforcement, explained to the LA Times that McMahon might face legal consequences, possibly leading to his removal from his role at WWE.
“Depending on the outcomes of the investigation into Vince McMahon, he could potentially face criminal and/or civil penalties that might disqualify him from serving as an officer or director of a public company.”
In January, when Vince McMahon forcefully returned to the company, Ignace Lahoud, a former WWE board member, resigned. He explained his departure, saying, “It didn’t align with my understanding of good governance, and there was a disconnect with my values.”
Lahoud also mentioned, “He [McMahon] said, ‘Okay, do whatever you guys need to do. I’m not going to stand in your way.’ Of course, when the board suggested that he step down, he wasn’t pleased about it, but he complied.”
Someone close to one of the former board members who left the company stated that McMahon perceived the investigation as an act of disloyalty, despite understanding that the board was simply fulfilling its duties.
