wrestling / News

Mark Shapiro Addresses Vince McMahon’s Status As TKO Stockholder

February 27, 2024 | Posted by Jeremy Thomas
Vince McMahon, WWE TKO, Slim Jim Image Credit: CNBC

Vince McMahon is no longer in a position of power in TKO and WWE but he still holds a lot of voting power as a shareholder, something Mark Shapiro has addressed. McMahon resigned from all positions in TKO in the wake of the sex trafficking & assault lawsuit filed against himself, WWE and John Laurinaitis, but as noted in TKO’s 10-K filing with the SEC today he owns 20 million shares worth of stock. On the TKO 4Q earnings call, Shapiro — the CEO of TKO — was asked about McMahon’s stock ownership and what he intends to do with it.

“Obviously, we’re talking about Vince McMahon, specifically, in terms of cashing stock,” Shapiro said (per Fightful). “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.”

He added, “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.”

The 10-K filing noted that McMahon “has agreed to make future payments to certain counterparties personally” but that the company, following SEC rules, “concluded that these amounts should be recognized by the Company as expenses in the period in which they become probable and estimable.”

It further noted that TKO “assumed $3.5 million of liabilities related to future payments owed by Mr. McMahon to certain counterparties, of which $2.0 million 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.”

It was added that in connection to the investigation into McMahon, he has reiumbursed TKO for $5.8 million in costs.