WWE boss Vince McMahon served with search warrant and ordered to appear in court
2 August 2023, 17:54
WWE said it has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies.
Federal law enforcement agents executed a search warrant and served a federal grand jury subpoena to WWE executive chairman Vince McMahon last month, according to a regulatory filing.
Mr McMahon is also taking medical leave from the sports entertainment company following recent spinal surgery.
WWE said in the filing with the Securities and Exchange Commission that while government investigations into Mr McMahon remain ongoing, no charges have been brought in them.
The company said it has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters.
“WWE has co-operated throughout and fully understands and respects the government’s need for a complete process,” the company said in a statement.
The Wall Street Journal had reported last year that the WWE was investigating an alleged 3 million US dollar (£2.36 million) payment from Mr McMahon to a departing female employee following a consensual affair. WWE’s investigation into the misconduct allegations was completed last year.
In a statement, Mr McMahon said: “In 2022, WWE formed a special committee to review allegations of misconduct against me. That review was concluded in November 2022 following an extensive investigation.
“Throughout this experience, I have always denied any intentional wrongdoing and continue to do so. I am confident that the government’s investigation will be resolved without any findings of wrongdoing.”
The announcement of Mr McMahon’s surgery was made by CEO Nick Khan during the company’s second-quarter earnings call on Wednesday.
Mr Khan said Mr McMahon had major spinal surgery nearly two weeks ago and is taking the leave in order to focus on his recovery. He did not specify the duration of the leave.
For the quarter, World Wrestling Entertainment earned 52 million dollars (£40.9 million), or 67 cents per share. Stripping out one-time costs, earnings were 91 cents per share. That was 2 cents shy of what analysts polled by Zacks Investment Research expected.
Revenue totaled 410.3 million (£322.9 million), a quarterly record. That topped Wall Street’s estimate of 398.5 million (£313.6 million). Revenue from live events jumped 51% for the period ending June 30.
WWE, which announced with Endeavour in April that it was combining with UFC, said that it saw an increase in ticket sales for live events, both domestically and overseas. It also reported an uptick in advertising and sponsorship revenue.
WWE’s merger with UFC will result in a new publicly listed company called TKO Group Holdings. The deal is still expected to close in the second half of the year.
While the deal with Endeavour continues to move forward as anticipated, WWE continues to focus on its domestic media rights for its weekly television programmes.
WWE currently has Smackdown airing on Fox and Raw and NXT airing on USA Network. Aside from Fox and NBC Universal, which owns USA Network, there have been several media reports that other well-known companies are possibly interested in the media rights, including Disney and Amazon.
“As expected, there was significant interest from the marketplace and these conversations are progressing well,” Mr Khan said during the call.
Viewership for Smackdown rose 26% in the 18-49 demographic during the quarter, while Raw viewership climbed 19%. NXT, which has increasingly started to incorporate some of its top name stars like Seth Rollins and Rhea Ripley onto the show, surged 49% in the 18-49 demographic.
