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TKO Group Holding issued a statement with the SEC announcing the planned potential sale of 5,350,000 shares of stock believed to potentially net McMahon as much as $411,950,000.
During a media call last week, TKO execs including Ari Emanuel stated they had not been in contact with McMahon and were not aware of any plans from him to sell additional shares of the company but they would deal with it when they learned, which they stated would be the same time as everyone else.
In January, McMahon resigned from TKO Group Holding's Board of Directors, where he fomerly held the role of Executive Chairman after the filing of the Janel Grant lawsuit, which featured some absolutely disgusting allegations against McMahon.
At the time, McMahon issued the following statement: “I stand by my prior statement that Ms. Grant’s lawsuit is replete with lies, obscene made-up instances that never occurred, and is a vindictive distortion of the truth. I intend to vigorously defend myself against these baseless accusations, and look forward to clearing my name. However, out of respect for the WWE Universe, the extraordinary TKO business and its board members and shareholders, partners and constituents, and all of the employees and Superstars who helped make WWE into the global leader it is today, I have decided to resign from my executive chairmanship and the TKO board of directors, effectively immediately."
The Hollywood Reporter later reported, "Ari Emanuel and TKO president and COO Mark Shapiro called McMahon and told him it would be in the best interest of the company for him to resign. He agreed, and submitted his resignation. “He will no longer have a role with TKO Group Holdings or WWE,” WWE president Nick Khan wrote in a memo to staff at 8:30 p.m. that evening, announcing McMahon’s resignation to employees."
The Reporter article noted that while WWE's media rights deals were locked in, within Endeavor, there were concerns about how McMahon remaining with the company could be "problematic" for not just WWE rights fees when the current Peacock deal for the company's library and PPVs but also UFC's rights when they come up next year. There was also a concern that McMahon remaining could hurt Endeavor's hopes for bringing WWE more major league advertising partners.
The Hollywood Reporter article also stated that the Janel Grant lawsuit details caught TKO leadership by surprise, while another source claimed it was McMahon's past catching up with him.
McMahon, WWE and John Laurinaitis are all currently defendants in the Grant lawsuit but have yet to officially respond. As noted, McMahon publicly promised to defend himself while Laurinaitis, through his attorney, has presented that he was as much of a victim of McMahon as Grant alleges to be.
A spokesperson for TKO Group Holdings, the parent company of WWE, issued the following statement to Courthouse News Service in January regarding the allegations in the lawsuit, prior to McMahon's resignation: - "Mr. McMahon does not control TKO nor does he oversee the day-to-day operations of WWE. While this matter pre-dates our TKO executive team’s tenure at the company, we take Ms. Grant’s horrific allegations very seriously and are addressing this matter internally.”
The Wall Street Journal has reported that Vince McMahon is also currently under federal investigation in relation to the allegations made by Janel Grant against him in regard to alleged sexual assault and sex trafficking. To date, he has not been charged.
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