Mark Shapiro comments on Vince McMahon.
Though Vince McMahon resigned from his position as TKO E🍎xecutive Chairman on January 26, he still has ౠa significant portion of the voting power thanks to his controlling shares in stock.
Speaking on the TKO Financials call, TKܫO President🐼 Mark Shapiro commented on Vince's status in regards to his stock.
"Obviously, we’re talking about Vince McMahon, specifically, in terms of cashing stock. He still holds, I believe, 20 million shares. It’s all registered. He’ll do whatever he is going to do and we’re on the sidelines, we’ll have a look, we’ll see, we have no idea on timing. We’re not having a discussion with him. He’s given us no point of view on his motive or if he plans to sell or not sell or if he does, how much. We’re going to wait around and find out, just like you," he said.
TKO 🌳dedicated an entire𝕴 section to McMahon in their .
Vincent McMahon
Vincent K. McMahon, who served as Executive Chair of the Company’s Board of Directors until January 26, 2024, controls a significant portion of the voting 🌟power of the issued and outstanding shares of the Company’s common stock.
Mr. McMahon has agreed to make future payments to certain counterparties personally. In accordance with the SEC’s Staff Accounting Bulletin Topic 5T, Miscellaneous Accounting, Accounting for Expenses or Liabilities Paid by Principal Stockholders (“Topic 5T”), the Company concluded that these amounts should be recognized by 🤪the Company as expenses in the period in which they become probable and estimable.
In connection with the acquisition of WWE, the Company assumed $3.5 million of liabilities related to future payments owed by Mr. McMahon to certain counterparties, of which $2.0 milli💫on was paid directly by Mr. McMahon during the period of September 12, 2023 through December 31, 2023. During the period of September 12, 2023 through December 31, 2023, the Company recorded $3.5 million of expenses associated with payments made directly by Mr. McMahon to certain counterparties. These costs are included within selling, general and administrative expenses in our consolidated statements of operations. Additionally, during the period of September 12, 2023 through December 31, 2023, the Company recorded $3.5 million of costs associated with payments made directly by Mr. McMahon related to WWE’s global headquarters lease. These costs are included within finance lease right-of-use assets, net in our consolidated balance sheets. These payments are considered non-cash capital contributions and are included as a component of principal stockholder contributions in our consolidated statements of stockholders’/members’ equity. As of December 31, 2023, total liabilities of $1.5 million are included within accrued expenses in our consolidated balance sheets related to future payments owed by Mr. McMahon to certain counterparties.
In connection with and/or arising from the investigation conducted by a Special Committee of the former WWE board of directors, Mr. McMa𒐪hon has agreed💙 to reimburse the Company for additional costs incurred in connection with and/or arising from the same matters. During the year ended December 31, 2023, Mr. McMahon reimbursed the Company $5.8 million associated with these costs. This reimbursement is considered a capital contribution and is included as a component of principal stockholder contributions in our consolidated statements of stockholders’/members’ equity.
On January 25, a lawsuit was filed by former WWE employee Janel Grant against Vince McMahon, WWE and former executive John Laurinaitis. The lawsuit accuses McMahon of sex trafficking,🦋 emotional abuse, and sexual assault.
McMahon has denied the allegations.
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