McMahon announced on Friday that He was retiring from WWE. This came five weeks after he announced that he would do so Resignation of the position of Chairman and CEO of the company Amid an ongoing investigation into allegations that he paid millions of dollars to several women to keep secrets about alleged affairs and misconduct.
On Monday, WWE revealed in an SEC filing that it had “made a preliminary determination that certain payments that Vince McMahon agreed to make during the 2006-2022 period (including payments made and payable in the future), which were not recorded in the data should be recorded. WWE’s consolidated finances as expenses in the quarters in which those agreements were entered into.”
WWE said the investigation into allegations of McMahon’s misconduct by the Board of Directors’ Special Committee (which includes independent members) is “ongoing”. It also revealed that it had received “regulatory, investigative and enforcement inquiries, and subpoenas [and] Claims” in relation to McMahon’s alleged misconduct.
According to the company, these payments were made or will be paid by McMahon personally. While WWE said these were not material in any single period, the total amount of $14.6 million “would be material if fully credited in the second quarter of 2022.” As such, the company currently expects that it will revise its previously released financial statements to record McMahon’s payments in the applicable periods for 2019, 2020 and 2021, as well as the first quarter of 2022, when it releases its financial statements for the second quarter. 2022.
Given that payments made by McMahon over 16 years while the leader were not reflected in its financial statements, “the company would expect to conclude that its internal control over financial reporting has not been effective as a result of one or more material weaknesses.”
WWE said it aims to release the revised financial statements by August 9, 2022, but “there is no guarantee that it will be able to meet that deadline.”
The company on Monday released preliminary results for the second quarter of 2022. WWE expects revenue of $328 million for the period (up 23% year-over-year), operating income of $70 million (up 52%) and adjusted pre-depreciation and amortization operating income of 92 million dollars (up 35%). The revised OIBDA for the second quarter of 2022 is above the company’s previous guidance of $80 million-$90 million.
WWE shares rose more than 8% in morning trading on the back of better-than-expected second-quarter results.
WWE also officially announced on Monday that its board of directors has appointed Stephanie McMahon and Nick Kahn as co-CEO following the resignation of Vince McMahon. Stephanie McMahon, daughter of Vince, has also been appointed chair of the board, and Khan will continue to serve as a member of the board.
In addition, WWE Executive Vice President of Talent Relations Paul Levesque — aka Triple H — will take on all responsibilities related to WWE’s creativity, in addition to his regular duties, the company said. Levesque is married to Stephanie McMahon.
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