According to a recent report by Axios, WWE Chairman Vince McMahon could be a big liability to the newly formed TKO Group Holdings. This news comes per a recent SEC regulatory filing tied to WWE’s recent merger with Endeavor, the parent company of the UFC.
TKO notes the following in their regulatory filing:
“McMahon’s membership on our Board could expose us to negative publicity and/or have other adverse financial and operational impacts on our business. His membership also may result in additional scrutiny or otherwise exacerbate the other risks described herein. Any of these outcomes could directly or indirectly have adverse financial and operational impacts on our business.”
Axios also notes the same filing states that McMahon, alongside two other TKO executives, “will be selling stockholders in this offering.”
Axios further states TKO has registered all of McMahon’s shares for sale, which would enable him to avoid the lockup period which applies to other TKO stockholders. At the present, McMahon reportedly holds an estimated $28.84 million TKO shares, which was valued at $3 billion as of the market close this past Wednesday.
There has been no comment from McMahon or TKO Group Holdings as of the article from Axios.