As a public company, WWE’s quarterly SEC filings are an important source of information on stories like the one that’s played out with now-former CEO Vince McMahon. The latest of those filings on Aug. 9 revealed even more payments that Vince McMahon made to women connected to allegations of misconduct than were originally known.
WWE explained this week that it found two additional payments for a total of $5 million (from 2007 and 2009) that it was previously unaware of, and should have been included in the amount Vince McMahon had paid to alleged victims between 2006 and this year. They bring the sum of his payments during that time to $19.6 million, an amount WWE says “were not appropriately recorded as expenses … and that should have been recorded in the Company’s consolidated financial statements.”
The investigation into Vince McMahon’s behavior is still ongoing. He resigned as Chairman and CEO on July 22, with daughter Stephanie McMahon taking over the former role and splitting the latter with Nick Khan.
But the fallout over his actions hasn’t ended, as this week’s filings mark the second time since the Wall Street Journal initially broke the story about his reported payments to cover up affairs and other misconduct that additional payouts have come to light. It’s critical for WWE to understand and account for the full scope of the money he’s paid out in order to ensure it’s internal controls are effective, something the company has been forced to admit has not been the case “as a result of one or more material weaknesses.”
On top of that, WWE is wary of government agencies doing their own investigation into Vince McMahon’s conduct, noting that there could be “regulatory, investigative and enforcement inquiries, subpoenas or demands arising from, related to, or in connection with these matters.”
Even as it has turned the page creatively under new leadership, it’s become increasingly clear that the promotion won’t be able to put its former leader behind it quite as easily, and has to be hoping there aren’t more financial surprises still to come.