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Vince McMahon has agreed to pay more than $1.7mn to settle Securities and Exchange Commission charges for failing to disclose payments made to two women during his time as chief executive of World Wrestling Entertainment.
An investigation by the regulator found that the businessman had failed to disclose the signing of two settlement agreements while CEO of WWE, which the SEC said “circumvented” the company’s internal accounting controls and caused “material misstatements” in its 2018 and 2021 annual financial statements.
The charges mark the latest twist in a long-running saga concerning McMahon’s alleged personal conduct during his time at WWE.
WWE merged with the Ultimate Fighting Championship in 2023, creating listed entity TKO that was valued at more than $20bn at the time. McMahon resigned from TKO, run by Hollywood power broker Ari Emmanuel, in early 2024.
McMahon had previously stepped down as CEO and executive chair of WWE in 2022 following allegations of misconduct. He was replaced by his daughter Stephanie and remained the company’s biggest shareholder. Six months later, he returned after orchestrating a boardroom shake up.
His wife Linda was the co-chair of Donald Trump’s recent transition team, and has been nominated to lead the education department in the new administration. The couple are separated.
McMahon, who did not admit to or deny the SEC’s findings regarding two settlement agreements signed in 2019 and 2022, agreed to pay a $400,000 civil penalty and reimburse WWE more than $1.3mn.
One agreement obliged the then-CEO and executive chair to pay a former employee $3mn in exchange for her not disclosing a relationship with him. The other settlement agreement involved payment of $7.5mn to a former WWE independent contractor in exchange for her not disclosing allegations against the businessman, the SEC said. In exchange for the payments, both individuals had agreed not to pursue potential claims against WWE and McMahon, according to the regulator.
“In the end, there was never anything more to this than minor accounting errors with regards to some personal payments that I made years ago while I was CEO of WWE. I’m thrilled that I can now put this all behind me.” said McMahon, in a statement posted on X.
McMahon, 78, took over WWE — then called the World Wresting Federation — from his father in 1982. During his nearly four decades in charge, the company grew to become a huge global success and was valued at $9.3bn when it merged with UFC.
In the late 1990s, McMahon developed a larger-than-life on-screen persona and began taking part in wrestling bouts himself. In 2007, he had his head shaved in the ring by Trump after his fighter lost a match known as The Battle of the Billionaires.
WWE did not immediately respond to a request for comment.