TKO Lists Vince McMahon Board Membership As Potential Financial Risk In New SEC Filing

TKO Group Holdings had its first earnings call on Tuesday, after which the newly-minted company filed a supplement to its first prospectus that summarized a number of risk factors for the company — one of which is one of the company's most public figures: Vince McMahon.

According to the SEC filing, McMahon's board membership could lead to "negative publicity and/or have other adverse financial and operational impacts." Furthermore, the filing says that McMahon could open the company up to "additional scrutiny or otherwise exacerbate the other risks described herein." The filing details the Special Committee that investigated McMahon last year, as McMahon had been found to be using company funds to make hush money payments to former employees who had been alleging harassment and abuse at the hands of McMahon and former Head of Talent Relations John Laurinaitis.

The language of the filing indicates the investigation into McMahon was closed, but that further hush money payments were found and reimbursed. The filing also warns that the investigation, as well as further expenses that could occur due to said investigation, could pose a financial risk to the company — WWE has not lost any business due to the investigation, but the investigation could still change the perceptions of the company's business partners.

McMahon left the company for a period after the hush money payments were revealed, but returned to WWE in January of this year to help facilitate the merger between WWE and UFC, which was announced in April, forming TKO Group Holdings.