Vince McMahon CRASHES WWE! Net Worth REVEALED! | WrestleTalk

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Vince McMahon CRASHES WWE! Net Worth REVEALED! | WrestleTalk
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Transcript

00:00 How did Vince McMahon crash the stock of his own company?

00:03 Are we about to enter an era of WWE with no McMahons?

00:08 And most importantly, what does Ike Vince do all day now?

00:12 Breaking News!

00:13 Vince McMahon still controversial no matter who owns WWE!

00:24 On the 15th November 2023, it became official.

00:28 Vince McMahon had sold 8.4 million shares of the new WWE and UFC merged company TKO

00:34 Holdings.

00:35 Wow, 8.4 million shares.

00:37 That's… uh… it sounds like a lot.

00:41 I've got no idea what that means.

00:43 Companies, particularly big business business business ones, often have complex accounting

00:47 and ownership structures.

00:49 Meaning there's loads of different kinds of stock.

00:51 Dividend stock, ownership stock, common stock that your mum comes from.

00:56 The SEC filing reveals Vince sold 8.4 million of his Class A stock, which traditionally

01:02 have the biggest voting powers.

01:03 It's the majority Class A stock owners who can decide on the macro decisions of the overall

01:10 company.

01:11 That means Vince just sold a third of the most valuable part of his life's work.

01:16 Brandon Thurston of WrestleNomics has clarified what that means in terms of cold hard money!

01:22 Posting on X, "Vince McMahon ended up selling 8.4 million TKO shares at a price of $76.41

01:30 a share after underwriting discount and commission to Morgan Stanley.

01:34 Comes out to net proceeds of $641,844,000.

01:40 He still holds about 20 million TKO shares, roughly 12% of the company.

01:45 He held 16% before this."

01:48 A great man once said Vince McMahon was a millionaire who should be a billionaire.

01:52 Well you were wrong again, punk!

01:54 The stock sale means Vince just added $642 million to his bank balance.

01:59 On paper, he still has double that as stock in TKO holdings.

02:03 As of 20th November, Forbes lists his real-time net worth as 2.6 billion.

02:10 Making him the 1,193rd richest person on the planet.

02:15 And you know he's going to be annoyed he's not in the top 1,000.

02:18 The problem is, McMahon making such a big withdrawal from TKO spooked Wall Street, causing

02:24 the company's shares to plummet.

02:26 WWE works a different way now.

02:28 In the past, the top people in the company like Vince or Stephanie or Triple H would

02:33 routinely sell off a portion of their shares to give them a little bonus.

02:37 Maybe to buy succession style treats like expensive wine, helicopter rides or a family

02:43 holiday to Siberia to hunt the most dangerous game in the wild - captured humans.

02:49 That stock selling practice actually got them in hot water back in 2020, when other shareholders

02:53 filed a lawsuit against WWE alleging senior executives inflated the stock price - via

02:59 what the lawsuit claims was a misleading Saudi Arabia deal - to sell more than $282 million

03:05 worth of their personally held shares.

03:08 WWE denied this, but would go on to settle that lawsuit for $39 million.

03:14 Not the only time we're going to cover settling lawsuits outside of court in this story.

03:18 As a result, TKO Holdings appeared to be doing things in a more corporately transparent way.

03:24 Rather than investors waking up one morning to Vince having suddenly sold a third of his

03:28 ownership, which would imply something was up, TKO got out ahead of it and announced

03:32 the sale intention a week before in a press release - showing it was a move all sides

03:37 were aware of.

03:38 But that didn't stop a Wall Street freakout.

03:40 As soon as Vince's intention to sell his shares was announced on the 9th November,

03:44 TKO's stock price dropped 6.5% to $79.26 - amongst the lowest it's been since the

03:52 company's official listing on the stock market on the 12th September.

03:57 This is far below the $100+ share price WWE reached in April 2023 following the UFC merger

04:04 news.

04:05 And on the 20th November, TKO has remained at this new low.

04:10 Going by that dip, it seems Wall Street doesn't want any signs that Vince could be exiting

04:16 WWE.

04:17 Full disclaimer, though, you can't put too much stock in the opinions of the stock market.

04:22 Because when Vince was reportedly trying to return in December 2022, that same capitalist

04:26 wisdom also saw WWE's share price plummet.

04:30 And Vince being forced out earlier that year caused a stock surge.

04:33 So conclusion, the stock market doesn't know what it wants, much like wrestling fans.

04:39 The Vince sell-off dip is actually the second blow to TKO following its official creation,

04:43 with an even bigger 18% drop when the company announced that SmackDown was moving back to

04:49 the USA Network from Fox, despite getting a 40% increase on what they were being paid.

04:54 But who is buying all that stock that Vince is selling?

04:57 The SEC filing notes that TKO itself will repurchase approximately $100 million worth

05:02 of the stock.

05:03 A further $1.85 million will be bought personally by company directors.

05:08 Meaning there's about $540 million worth up for grabs.

05:13 Oh my god, let's do a Kickstarter.

05:18 It might be a shrewd move for TKO to help Vince give up his ownership in the company.

05:22 Because going by TKO's own publicly available statement, he's one of the biggest threats

05:28 to their business.

05:30 When announcing he was going to sell a third of his shares and actually doing it, Fox Sports

05:34 got to chat to Vince on Veterans Day about WWE's latest gesture to support the armed

05:39 forces.

05:40 Along with tribute to the troops, McMahon was promoting WWE headquarters, raising what

05:45 is thought to be one of the largest American flags in the world above it.

05:50 At 76 feet wide and 40 feet tall, it has a surface area of 3,040 square feet.

05:58 That's a pretty big flag.

06:01 I mean, it's so big, it's almost like it's trying to distract you from something.

06:07 In that same interview, Vince was asked for comment on the sexual assault allegations

06:11 and federal investigation into him.

06:14 McMahon declined.

06:15 But TKO Holdings sure didn't.

06:18 On the 7th November, the same day news of Vince's sell job intentions were made public,

06:23 TKO gave its 2023 third quarter financial results.

06:27 In that SEC filing, Vince McMahon, who is TKO's Executive Chairman, was listed under

06:33 the Risk Factor section.

06:35 Risk Factor, title of AEW's next gimmick TV special.

06:39 "Mr. McMahon's membership on our board could expose us to negative publicity and/or

06:44 have other adverse financial and operational impacts on our business.

06:48 His membership also may result in additional scrutiny or otherwise exasperate the other

06:53 risks described herein.

06:54 Any of these outcomes could directly or indirectly have adverse financial and operational impacts

07:00 on our business."

07:02 Vince was forced out from WWE in 2022 due to mounting allegations of sexual misconduct,

07:07 which he denies, with the Wall Street Journal reporting he had made numerous hush money

07:11 payments to cover it up.

07:12 Much like how the government got Al Capone on tax fraud, though, it's the numbers that

07:16 often spill disaster for you at Sacrifice.

07:20 Vince's biggest threat isn't really from the women who have accused him of sexual abuse.

07:24 It's from the Securities and Exchange Commission, and their investigation into how exactly WWE

07:32 paid that hush money.

07:33 In WWE's previous earnings report in August - the last one before it was officially merged

07:38 into TKO Holdings - they revealed "federal law enforcement agents executed a search warrant

07:43 and served a federal grand jury subpoena on Mr. McMahon."

07:48 No charges have been brought in these investigations.

07:50 The looming threat of Vince being found guilty by the government could be hugely embarrassing

07:55 for TKO, hurting their stock price further.

07:58 Which could be why they're getting out in front of a potentially unfavourable ruling,

08:02 making it public they see him as a risk already, and helping facilitate him reducing his ownership.

08:08 But until all that concludes, what does, erm, what does Vince do all day at work?

08:14 It was widely believed that McMahon ruthlessly forced his way back in WWE in January 2023,

08:19 disposing many board members who tried to block his return, including his own daughter

08:24 Stephanie, because he wanted to gain full control again.

08:28 Over the business.

08:29 Over creative.

08:30 Over everything.

08:36 His strategy was to smuggle this intention inside the larger Trojan horse of selling

08:41 the company.

08:42 The Saudi Prince would buy it for loads of money, and Vince would get installed back

08:46 to his former position of power.

08:47 And that seemed like it was going to happen in those initial interviews with Vince's

08:51 new boss, Endeavor owner Ariy Emanuel.

08:53 But now the deal is fully closed.

08:55 It appears as though McMahon is being sidelined by the man who's become his new boss.

09:01 When Vince probably thought they'd end up as equals.

09:04 With probably Vince in charge still.

09:06 Sports Illustrated reported in mid-October that Ariy almost immediately removed Vince

09:10 from any creative duties, making Triple H solely responsible.

09:14 Instead, Vince, as Executive Chairman, his focus is elsewhere - particularly in overseeing

09:20 a lucrative new media rights deal for Raw and the NXT brand.

09:24 But the TV rights deal was a WWE President Nick Khan's domain, and since TKO's creation,

09:29 he's already completed two of the three - a 40% increase for SmackDown moving to USA

09:34 Network, and a reported 70% increase with NXT on CW.

09:39 The only deal that remains is the WWE Raw rights, which they have until October 2024

09:44 to sort.

09:45 So how is Vince filling his time?

09:47 The man doesn't sleep.

09:48 Dana White has revealed Vince was "instrumental" in getting the UFC its first ever Saudi Arabia

09:53 show for March 2024, telling Sports Business Journal "It was Vince McMahon.

09:58 It was 100% Vince McMahon.

10:00 He made every call.

10:01 He didn't make one move without picking up the phone and calling me and getting me

10:04 in the loop and seeing if I was cool with this and that, and he went from being, oddly

10:09 enough, I don't know why, an enemy of UFC's, to being an unbelievable, incredible partner."

10:14 It's weird to think of the once all-powerful McMahon no longer anywhere near WWE creative,

10:20 instead reduced to making calls for his former arch-nemesis.

10:25 Feels like Vince has become a ceremonial role in TKO.

10:28 One they give odd jobs to to make him feel important, but, in reality, they're either

10:32 waiting for a scandal to eject him, or for his two year deal to expire.

10:37 It's a smart situation to create.

10:39 Vince is either your lovable, grumpy, moustachioed grandad mascot, or the near-extinct, toxic

10:45 dinosaur you can fire for good PR based on what comes out from the SEC.

10:50 The Hollywood Reporter writes that Vince signed a two year deal that ends in 2025.

10:54 It can be terminated by either side with 180 days notice, and, crucially, "McMahon's

11:00 continued employment shall be conditioned on compliance with the company's conflict

11:04 of interest and Code of Conduct, as well as its equal opportunity and non-harassment policy,

11:11 among other terms."

11:12 So any future slip-ups, and he could be out immediately.

11:15 Sports Illustrated adds McMahon possesses "an ironclad contract that protects him

11:20 financially yet not politically."

11:23 Whatever happens, Vince will have loads of money.

11:26 But unlike any time before in the four decades plus he's run WWE, that is at the expense

11:32 of top level power.

11:34 Which is why CNBC speculated on Vince selling his shares that it could indicate his plans

11:39 to get out of his family business.

11:42 Dave Meltzer speculated something similar on Wrestling Observer Radio, but went one

11:46 step further.

11:47 He noted how different TKO's conduct was from the WWE quarterly calls.

11:51 Not better or worse, just different.

11:55 Because it wasn't the usual WWE faces up there answering questions.

11:59 There was no Nick Khan, no Triple H, no Vince.

12:03 Because the TKO deal, the whole WWE/UFC merger, really isn't just Vince getting out of the

12:09 wrestling business, it's the McMahon dynasty getting out of the wrestling business.

12:14 Before Vincent Kaye, there was Vincent Jay.

12:16 But unlike we'd all assumed for decades, the next name, or even majority shareholders,

12:21 won't be Stephanie or Shane.

12:23 For the first time ever, WWE's owners won't have the last name McMahon.

12:29 Do you think WWE is better off now without the McMahons?

12:32 Tell me how you kinda miss weird storylines like Retribution or Mae Young's Hand Kid

12:37 in the comments down below.

12:38 And let me know what you think of these deeper dive news episodes.

12:42 And if you do like it, go check out our other analysis on WWE and AEW recently poaching

12:48 Japanese talent.

Vince McMahon CRASHES WWE! Net Worth REVEALED! | WrestleTalk

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