WWE Alerts Investors To Protocol And Creative Changes Following Vince McMahon's Resignation

WWE provides further clarity for investors following the Board of Directors' investigation into Vince McMahon. It's been a big news day from a financial perspective for the company, but with that comes addressing the elephant in the room of McMahon's exit and the financial impact potentially forthcoming. WWE did that in its second-quarter report on Tuesday.

"Mr. McMahon resigned from all positions held with the Company on July 22, 2022 but remains a stockholder with a controlling interest," the report stated. "On July 25, 2022, based on the findings of the Special Committee investigation, the Company announced that it had determined that certain payments that Mr. McMahon agreed to make during the period from 2006 through 2022 (including amounts paid and payable in the future totaling $14.6 million) were not appropriately recorded as expenses in the Company's Consolidated Financial Statements." 

The company addresses the two payments of $5 million in 2007 and 2009, noting that those in particular, do not have any ties to what's being investigated. There was a recent report by Brandon Thurston of Wrestlenomics that makes the possible connection of those payments being for the Trump Foundation.

The report notes that Triple H has been appointed as the new head of creative, citing his "decades of experience in our Company" across all platforms, but does state that the loss of services of McMahon could have a "material adverse effect on our ability to create popular characters and creative storylines."