The Wall Street Journal reported Wednesday the WWE board of directors is investigating a secret settlement deal involving CEO Vince McMahon and a former employee.
WSJ reporters Joe Palazzolo and Ted Mann reported the alleged Jan. 2022 separation agreement worth $3 million involved a former paralegal, who was hired in 2019 and engaged in a relationship with McMahon.
The report states the board began its investigation in April and discovered other nondisclosure agreements involving former female employees making misconduct claims against McMahon and executive John Laurinaitis. The Journal could not determine how many previous agreements were being scrutinized. According to WSJ’s sources, the previous nondisclosure agreements were tabbed as “millions of dollars” worth of payments.
The law firm Simpson Thacher & Bartlett LLP is overseeing the investigation and states preliminary findings believe McMahon used his personal funds to pay the former female employees, per the Wall Street Journal via Post Wrestling’s John Pollock.
A spokesperson with WWE tells the Wall Street Journal it is cooperating with the inquiry. They classified the relationship between McMahon, 76, and the former employee as “consensual.”
McMahon’s attorney, Jerry McDevitt of K&L Gates, sent a letter to the Wall Street Journal. The letter stated the former employee made no allegations of harassment against McMahon and added, “WWE did not pay any monies… on her departure.”
WSJ reports members of the board of directors first learned of the $3 million agreement after receiving anonymous emails from an alleged friend of the ex-employee — the first email was sent March 30. The friend claimed the former employee was hired at a salary of $100,000 and moved up to $200,000 after beginning a sexual relationship with McMahon. The email added McMahon is alleged he “gave her like a toy” to Laurinaitis.
“My friend was so scared, so she quit after Vince McMahon and lawyer Jerry paid her millions of dollars to shut up,” the initial email to the board said, per WSJ.
WWE staff have been informed of the Wall Street Journal article, per The Wrestling Observer’s Dave Meltzer.
“The Wall Street Journal has published a report about WWE with allegations that we and our Board of Directors take seriously,” per Wrestlenomics’ Brandon Thurston. “We are cooperating fully with the independent investigation initiated by our Board of Directors.”
The company has yet to make a statement.
WWE’s 12-person board of directors consists of Vince McMahon, Nick Khan, Stephanie McMahon-Levesque, Paul Levesque, Steve Koonin, Ignace Lahoud, Erika Nardini, Steve Pamon, Connor Schell, Man Jit Singh, Jeffrey R. Speed and Alan M. Wexler.
