The investigation into alleged misconduct by the former CEO and chairman Vincent Kennedy McMahan is almost done said an official statement from WWE.
The company restated earnings going back to 2019 to account for personal payments McMahon made during his tenure, including $14.6 million allegedly to women in return for their silence about affairs and other misconduct.
The company statement further added that the McMahan investigation may continue to pose financial implications for the company. “While we currently anticipate spending approximately $10 million during the remainder of the year related to this investigation, the related costs could exceed this estimate.”
The company however reiterated in one of its associated statements that no businesses have been lost to date but there exists an apprehension related to further business in the days to come owing to the investigation that can potentially impact their business partners or the new business.
After Vince McMahan resigned from his post as the CEO his post was taken over by Stephanie McMahan and Nick Khan who were previously in the executive posts in the company. Whereas Stephanie’s husband and WWE superstar Triple H leads the talent relations and creative division of the company which was previously held by Vince.
The company on Tuesday announced Q2 earnings. Revenue for the period was $328.2 million, up 24%, and net income was $49.0 million, an increase of 68% year over year. Adjusted operating income before depreciation and amortization (OIBDA), which excludes stock-based compensation, increased 34% to $91.5 million.
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On the earnings call, Triple H said WWE set a record for first-day ticket sales for WrestleMania 39, to be held at L.A.’s SoFi Stadium in April 2023, with more than 90,000 tickets purchased in the first 24 hours after they went on sale Aug. 12 — more than any event in WWE history and a 42% increase over first-day sales for WrestleMania 38.
In the wake of accounting for McMahana’s payments, WWE said its reported income and net income for the 2021 financial year were overmentioned by $3 million.
Whereas the previously reported beginning accumulated deficit as of Jan, 12019 was overmentioned by almost $16.6 million for McMahan’s payment between the 2006-2018 fiscal years.
Last week, WWE disclosed that the board has identified additional alleged misconduct of $5 million between 2007 and 2009 from that of the current investigation under process by the company cornered by McMahan.