WWE CEO Vince McMahon is going on leave, just as the company looks to close its highly successful merger with the UFC. At the same time, McMahon faces continued scrutiny over the alleged hush money payments that were the focus of an internal investigation led by the company’s board of directors last year.
At WWE’s 10-Q presentation on Wednesday morning, the company revealed in a footnote that “on July 17, 2023, federal law enforcement officers executed a search warrant and served a federal grand jury subpoena.” to Mr. McMahon. No charges have been filed in these investigations.”
The company had previously said that it had received requests for documents and other information from regulators and law enforcement, and that it was cooperating with those requests. However, a search warrant suggests that the investigation is ongoing and active.
Also in a footnote on Wednesday, the company revealed that McMahon, who rejoined WWE as CEO earlier this year, is on medical leave “until further notice.”
“On July 21, 2023, Mr. McMahon took medical leave after undergoing major spinal surgery,” the company wrote. “Mr. McMahon will remain on medical leave until further notice, but he will remain CEO of the company.”
In March, McMahon reimbursed WWE $17.4 million for costs associated with the board’s misconduct investigation. Costs associated with the investigation have continued to be incurred.
McMahon stepped down as WWE CEO last year, handing over day-to-day control to his daughter Stephanie McMahon and Nick Khan. However, he remained the company’s majority shareholder.
In a surprising move earlier this year, McMahon used his majority stake to place himself and two other people on the company’s board, announcing that he would ask the company to look at strategic alternatives.
He was subsequently named WWE CEO, and the company announced an agreement with Endeavor to merge with his UFC business and create a dedicated independent sports company, TKO Inc. That deal is still on track to close in the coming months.
