The majority shareholder and former CEO of the World Wrestling Entertainment (WWE) is forcing himself back onto the company’s board and expects to become its executive chairman once again.
McMahon, 77, still owns the vast majority of the company’s Class-B shares that have more voting power than normal shares. In a news release, McMahon announced he is reinstating himself onto the board along with two former WWE presidents and board members, Michelle Wilson and George Barrios. Three board members will have to relinquish their positions to make room for McMahon, Wilson, and Barrios.
It is unclear what the shakeup will mean for McMahon’s daughter Stephanie, who, along with former WWE President Nick Khan, took over as co-CEOs after the elder McMahon retired.
The Wall Street Journal reported on McMahon’s return before the release was published.
The release states McMahon is returning so that the company can begin a “strategic review” and possible sale of the company. McMahon believes there is a small window of opportunity for the company with its broadcasting rights for its two flagship shows WWE RAW and WWE Smackdown, which are set to expire in 2024. The shows currently air on the USA Network and FOX.
The broadcasting rights of the two shows are expected to be negotiated this year before the current deals expire.
“The only way for WWE to fully capitalize on this opportunity is for me to return as Executive Chairman and support the management team in the negotiations for our media rights and to combine that with a review of strategic alternatives,” McMahon is quoted as saying in release. “My return will allow WWE, as well as any transaction counterparties, to engage in these processes knowing they will have the support of the controlling shareholder.”
McMahon has reportedly said he will not support any sale of the company or negotiated media-rights deal unless he is the executive chairman when the strategic review begins.
Last month, McMahon reportedly sent a letter to WWE’s board, expressing his desire to return and help oversee a strategic review for the company. According to the Journal, WWE responded by saying it was ready to begin a strategic review and would welcome his participation in it. However, the board stated it had unanimously decided his return to the company would not be in the best interest of WWE stockholders.
They also reportedly asked him to confirm his commitment to repay expenses related to the internal investigation the board conducted into his alleged misconduct.
In June, the Journal reported on a secret $3 million settlement McMahon paid to a departing employee that he allegedly had an affair with, noting the WWE confirmed it was investigating the matter.
That report, which also included WWE’s then-head of talent relations John Laurinaitis, led to McMahon stepping down as CEO; however, he still held creative control of the company’s content.
After a July report by the Journal revealed more payments to additional women, totaling over $12 million, and four former employees, McMahon retired from the company entirely while maintaining his controlling interest in the company.
While the payments came from McMahon’s personal account, the board investigation, which concluded in November, determined they should have been reported to the Securities and Exchange Commission (SEC) because the payments benefited WWE. The SEC and federal prosecutors were also reportedly investigating the payments said to have hastened McMahon’s retirement.
However, in December it was reported McMahon told friends he was “given bad advice” and wanted to return to the company.
According to Fightful Select, who spoke to multiple WWE talents, most employees were “left in the dark” about McMahon’s decision to return, which was not popular with the employees they spoke to. One talent noted they’d be “blown away” if McMahon became directly involved in producing the company’s content again.