World Wrestling Entertainment Inc.
said Tuesday that two additional payments totaling $5 million made by former chief executive Vince McMahon in the past should have been recorded in its consolidated financial statements.
The company, which runs the world’s most famous wrestling league, said unrecorded expenses now total $19.6 million compared to its prior preliminary determination of $14.6 million, according to a securities filing. WWE said the two additional payments made in 2007 and 2009 weren’t related to allegations surrounding McMahon which led to a special committee investigation.
WWE said all payments underlying the unrecorded expenses were or will be paid by McMahon.
WWE said it has preliminarily determined that the amount of the expenses wasn’t material during the periods when they arose. The company said it anticipates revising prior financial statements for the years ended Dec. 31, 2019, 2020 and 2021, as well as the first quarter of this year when it issues its second quarter results.
The Stamford, Conn.-based company said it has received regulatory, investigative and enforcement inquiries in connection with these matters.
McMahon retired as CEO and chairman of WWE in July following disclosures by The Wall Street Journal of multiple payouts to women who had alleged sexual misconduct and infidelity. He remains a stockholder with a controlling interest in the company. The Journal also reported that new federal investigations into the scandal hastened the retirement of McMahon, citing people familiar with the matter.