In October 2023, Ariel Emanuel spoke publicly about Vince McMahon, indicating that he was a risk factor for the future of the activities of the TKO Group (the group that unites WWE and UFC under one roof).
Today Vince McMahon is portrayed as a risk factor by his new company TKO. It was the presentation of the financial report for the last quarter on November 7, 2023 and it was the first report with WWE and UFC under the TKO group. Interestingly, TKO filed two sections in the documents to list and portray Vince McMahon as a risk factor for the TKO Group.
Two sections discussing the allegations against Vince McMahon in 2022 that forced him to step down from his role as chairman of WWE. The document also details the fact that Vince McMahon reimbursed WWE for the amounts he illegally withdrew to pay certain employees, but also mentions that no charges were filed against Vince (which was the result of the investigation). There is also a paragraph about Vince McMahon facing a search warrant in July 2023.
For all these reasons, the document states that the presence of Vince McMahon as Executive President of the TKO Group could prove to be a risk factor for the company as it could attract negative publicity and/or have a negative impact on the finances if further charges are brought. The TKO group was therefore well informed about the risk of keeping Vince McMahon in office after the sale.
It just remains to be seen whether Vince McMahon will actually be a negative for TKO Group stock going forward. Should we expect more allegations against Vince McMahon or is this a preventative measure?
You can read this special section on the official TKO document at this link (page 51).
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