WWE's McMahon Fined $1.7M in SEC Hush Money Settlement

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The Facts

  • The Securities and Exchange Commission (SEC) announced on Friday that former WWE Chief Executive Officer Vince McMahon must pay over $1.7M for failing to disclose settlement agreements related to sexual assault allegations.

  • McMahon signed two undisclosed settlement agreements — $3M to a former WWE employee and $7.5M to a female independent contractor, which were not reported to the company's board, legal department, or auditors.

  • The unreported payments caused WWE to overstate its 2018 net income by approximately 8% and its 2021 net income by approximately 1.7%, leading to material misstatements in financial statements.

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The Spin

Narrative A

The case represents nothing more than minor accounting errors regarding personal payments made during McMahon's tenure in WWE, with much of the speculation being misguided and misleading. The resolution closes a three-year investigation by various governmental agencies, allowing for closure.

Variety

Narrative B

McMahon acted as if rules did not apply to him. There was clearly a pattern of abuse during the wrestling mogul's tenure in the sports entertainment industry. WWE must confront its past and, for the rest of its existence, ensure that the toxic culture that McMahon created never returns again.

USA Today

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