Leave it to Vince McMahon Jr. to come up with a new wrestling angle.
McMahon, 77, the former CEO of World Wrestling Entertainment, said he plans to return to the company to “fully capitalize” on upcoming media rights negotiations with Fox and USA Network, ESPN reported.
McMahon, who has majority voting power through his ownership of WWE’s Class B stock, said Thursday he had told the company that he is electing himself and two former co-presidents and directors, Michelle Wilson and George Barrios, to the board, according to The Wall Street Journal. The move to reinstate McMahon, which the board previously rebuffed, and the others will require three current directors to vacate their positions.
Breaking: Vince McMahon plans to return to WWE to pursue a sale of the company, people familiar with the matter say. He retired in July amid a sexual-misconduct scandal. https://t.co/4YXskg278M
— The Wall Street Journal (@WSJ) January 5, 2023
The pro wrestling executive, who bought the company from his father in 1982, left WWE in July 2022 following disclosures by The Wall Street Journal of multiple payouts to women who had alleged sexual misconduct.
McMahon wants to assume the role of executive chairman but needs board approval to win that position. However, board members unanimously agreed that his return to the business was not in the shareholders’ best interest, according to the newspaper.
WWE posted its first year of more than $1 billion in revenue in 2021. The company had a market value of just more than $5 billion as of Thursday, according to The Wall Street Journal.
Shares of the company jumped 10% after McMahon’s announcement, CNBC reported.
McMahon believes there is a “narrow window” to initiate a sales process because WWE’s media rights -- including for its flagship programs “Raw” and “SmackDown” -- are about to be renegotiated, according to The Wall Street Journal.
WWE’s rights deals with Fox and USA Network expire next year, according to ESPN. Negotiations are expected to begin later this year.
“WWE is entering a critical juncture in its history with the upcoming media rights negotiations coinciding with increased industry-wide demand for quality content and live events and with more companies seeking to own the intellectual property on their platforms,” McMahon said in a statement. “My return will allow WWE, as well as any transaction counterparties, to engage in these processes knowing they will have the support of the controlling shareholder.”
When McMahon stepped down, his son-in-law, WWE Hall of Famer Paul “Triple H” Levesque, replaced him as the creative director of the company’s TV storylines.
It is unclear what role McMahon’s daughter, Stephanie McMahon, would play when her father returns. When Vince McMahon stepped down last year, his daughter took over as chairwoman and co-CEO with Nick Khan, The Wall Street Journal reported.
“Mr. McMahon can effectively exercise control over our affairs,” the company said in a regulatory filing in November, according to CNBC.
Vince McMahon built WWE into a worldwide organization, shattering the former concept of “territories” that were part of a “gentlemen’s agreement” between promoters, including the World Wide Wrestling Federation (now WWE), which was founded and run by McMahon’s father, Vince McMahon Sr. Promotions such as the National Wrestling Alliance, American Wrestling Alliance and WWWF maintained territorial borders and did not infringe on other promotions.
Vince McMahon Jr. changed that during the 1980s, offering professional wrestling matches on national television and hosting major events such as WrestleMania. Stars from the WWE stable have included Hulk Hogan, Dwayne “The Rock” Johnson, Steve Austin and Brock Lesnar.
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