Eric Bischoff On WWE Shareholder Lawsuit Settlement: 'Cost Of Doing Business'

It was revealed last week following the settlement in the WWE merger lawsuit, brought on by shareholders following the company's merger with UFC to create TKO Group Holdings, that the reported payout is $147.5 million. Vince McMahon is on the hook for $42.5 million, with TKO tasked with $105 million.

On a recent episode of "83 Weeks," former wrestling executive Eric Bischoff was asked by co-host Conrad Thompson how he'd classify the settlement expense for TKO and WWE. The former WWE employee called it an "operating expense."

"Not an accounting definition per say, but tax is probably another way to look at that," Bischoff said. "It's just the cost of doing business, in this particular case. Sure, they would have rather avoided it, but I think when you break out your calculator and look at the cost of doing business, the lawsuit that manifests as the result of the decisions they made, yeah, it's unfortunate, but it's the cost of doing business. It's a tax. Take your pick. It's probably a drop in the bucket compared to the overall revenue that's been generated."

Bischoff went on to speculate on just what "McMahon and his insurers" meant in the results of the settlement, while recognizing the specifics of the former WWE chairman's insurance policy aren't publicly known. As for how much of the $42.5 million McMahon may have to pay out of his own pocket, Bischoff said he would be willing to bet it's covered by the insurance policy. According to a previous report, WWE noted it expects its insurers to pay $75 million of its part of the settlement, with the remaining $30 to be paid by TKO.

If you use any quotes from this article, please credit "83 Weeks" and provide a h/t to Wrestling Inc. for the transcription.