World Wrestling Entertainment Inc (WWE.N) said it would restate some of its financial results after finding unrecorded expenses made by former Chief Executive Officer Vince McMahon, who stepped down last week amid allegations of misconduct.
The expenses total $14.6 million and were made from 2006, the company said in a regulatory filing on Monday. It would revise financial statements for the years ended 2019, 2020 and 2021, as well as the first quarter of 2022.
McMahon, 76, who turned WWE into an entertainment powerhouse with more than $1 billion in annual revenue after buying the company from his father in 1982, stepped down on Friday as CEO and chairman.
He is being investigated by WWE’s board for agreements to pay $12 million over the past 16 years to suppress allegations of sexual misconduct and infidelity, the Wall Street Journal has reported. The probe is ongoing, according to the company.
The exit, which several industry insiders considered inconceivable until a few days ago, saw his daughter Stephanie McMahon become the co-CEO along with Nick Khan. Vince’s son-in-law Paul Levesque was named the creative head of WWE.
In the filing, the company said it has “also received, and may receive in the future, regulatory, investigative and enforcement inquiries, subpoenas or demands arising from, related to, or in connection with these matters.”
It did not immediately respond to a request seeking more details.
WWE said it expects second-quarter revenue to be about $328 million, above market estimates of $311.9 million, according to Refinitiv IBES data. Its shares rose 6.5%.
“People are trying to ask if Vince letting go of operational and management responsibilities serves as a canary in the coal mine to a potential suitor coming in here to take over the business,” said John Healy, analyst at Northcoast Research.