Longtime WWE leader Vince McMahon allegedly paid out millions of dollars in hush money to a former female wrestler with whom he had a coercive sexual relationship, according to a Wall Street Journal report published Friday.
The female talent was also allegedly not brought back to WWE after spurning further sexual advances from the executive. McMahon allegedly paid out $7.5 million to the former wrestler, who claimed McMahon coerced her into giving him oral sex, demoted her and then decided not to renew her contract in 2005 after she resisted further sexual encounters with him, per the Journal report, via ESPN's Marc Raimondi. The wrestler and her lawyer reportedly negotiated a non-disclosure agreement with McMahon in 2018.
WSJ details a total of $12 million allegedly paid out to four women over the last 16 years to quiet allegations of the 76-year-old McMahon's sexual misconduct.
The Journal reported on June 15, WWE board of executives were investigating a secret $3 million hush money payment McMahon made to a former employee, a paralegal, over an alleged affair. WWE executive John Laurinaitis was also named in the report.
McMahon stepped down as his role of chairman and CEO with his daughter and chief brand officer, Stephanie, taking over in the interim. Vince retained his role as head of creative.
Also included in the WSJ report is McMahon allegedly sent unsolicited naked photos of himself to a WWE contractor and sexually harassed her on the job, leading to about a $1 million non-disclosure settlement in 2008. In a 2006 agreement, a former WWE manager was paid $1 million to stay silent about McMahon initiating a sexual relationship with her.
With these reported details, one question comes to mind: Will McMahon leave WWE?
It's a complicated answer. McMahon owns 37.6% of WWE shares, but he has 80.6% voting power, according to Wrestlenomics' Brandon Thurston. Put simply, WWE board of directors cannot vote McMahon out.
However, there are other methods and ways McMahon's exit from WWE could go. Here are four of them.
McMahon voluntary steps down
This is unlikely as McMahon has a number of other allegations in the past, and he has not met backlash for any of them. Most notably, Rita Chatteron, WWE's first female referee, accused McMahon of raping her in 1986 during a 1992 interview with Geraldo Rivera on his show "Now It Can Be Told." The statute of limitations for rape had already run out and charges were never filed. Abraham Riesman interviewed Chatteron for a New York Magazine story published on June 27.
Public pressure will likely not have an effect on McMahon, and he himself will not voluntary leave a company he helped put to the top of the industry for over four decades.
McMahon is forced to step down
Who forces McMahon to step down will be the biggest question. WWE has a multitude of advertisers that could put the pressure on McMahon. Of course, this will be dependent on how big the story gets, which will be on whether mainstream press starts covering the story in a serious manner. WWE's TV deals expire in Sep. 2024. Would FOX and NBCUniversal want to be associated with McMahon? While public pressure might not matter to McMahon, WWE's business partners certainly carry a lot more weight, and if they don't want to be associated with McMahon, then he'll have no other choice but to step down for good.
The board ousts McMahon
As mentioned before, McMahon owns 80.6% voting power, so he can't be voted out of the company. However, McMahon's employment agreement does come with conditions he can be terminated, per Thurston. The main focus of the board's investigation is regarding whether or not company money was used in these payments McMahon made.
If this is found out to be the case, the board would have cause to terminate McMahon. Whether or not the board of directors chooses to enact the clause is a different story.
WWE sells
This is similar to the forced termination. WWE's stock continues to dip as more details of McMahon's sexual misconduct is revealed. It's possible the asking price for a Comcast / NBCUniversal group is lessened, and they are able to buy the company at a discount. If another company does buy WWE, they could choose to oust McMahon completely and start anew. Similar to McMahon voluntary stepping down, this is unlikely to happen, but the possibility remains.
