Vince McMahon On SEC Settlement: “Thrilled to Put This Behind Me”

Former WWE Chairman and CEO Vince McMahon broke his silence on social media Friday following reports of his $1.7 million settlement with the SEC regarding hush-money payments. In a statement posted on X, McMahon expressed relief and sought to clarify the situation:

“The case is closed. Today ends nearly three years of investigation by different government agencies. There has been a great deal of speculation about what exactly the government was investigating and what the outcome would be. As today’s resolution shows, much of that speculation was misguided and misleading.

In the end, there was never anything more to this than minor accounting errors with regard to some personal payments that I made several years ago while I was CEO of WWE. I’m thrilled that I can now put all this behind me.”

The Securities and Exchange Commission (SEC) announced it has settled charges against McMahon, alleging he failed to disclose settlement agreements totaling $10.5 million with two women who agreed not to reveal potential claims against him and WWE.

Background of the Allegations

McMahon stepped down as WWE CEO in 2022 amid an investigation into allegations that align with those in a subsequent lawsuit filed by a former employee. He officially resigned from WWE’s parent company, TKO Group Holdings, in January 2024 after facing a federal lawsuit accusing him and another former executive of serious sexual misconduct. McMahon has continued to deny any wrongdoing.

The SEC’s findings revealed that McMahon entered into two settlement agreements: one in 2019 requiring a $3 million payment to a former WWE employee and another in 2022 obligating a $7.5 million payment to a former independent contractor. These agreements included non-disclosure clauses and releases of potential claims against both McMahon and WWE.

Accounting Violations and Misstatements

The SEC stated that McMahon’s failure to disclose the agreements to WWE’s board, legal department, accountants, financial reporting personnel, or auditor circumvented the company’s internal accounting controls. This caused material misstatements in WWE’s 2018 and 2021 financial statements. Specifically:

WWE overstated its 2018 net income by approximately 8%.
WWE overstated its 2021 net income by about 1.7%.

After learning of the agreements, WWE issued restated financial statements in August 2022.

Regulatory Action and Penalties

Without admitting or denying the SEC’s findings, McMahon agreed to cease-and-desist from violating specific regulations, pay a $400,000 civil penalty, and reimburse WWE $1.3 million.

Thomas P. Smith Jr., Associate Regional Director of the SEC’s New York office, emphasized the importance of transparency in corporate governance:

“Company executives cannot enter into material agreements on behalf of the company they serve and withhold that information from the company’s control functions and auditor.”

McMahon’s Legacy

As WWE’s leader for decades, McMahon transformed the organization from a regional enterprise into a global entertainment powerhouse. Since acquiring the World Wrestling Federation from his father in 1982, WWE has grown exponentially. Its weekly live television program, Raw, recently debuted on Netflix, garnering 4.9 million global views and averaging 2.6 million U.S. households, according to VideoAmp.

The resolution of this case marks a pivotal moment in McMahon’s storied career, allowing him to move forward from a challenging chapter in his life.