Update On If Vince McMahon Can Be Removed As Chairman By WWE Parent Company TKO Group
The wrestling world remains in shock after Thursday saw news break of a sex trafficking lawsuit against Vince McMahon and WWE. The suit was filed by former WWE employee Janel Grant, detailing disturbing allegations of sexual abuse, exploitation, and among other heinous acts, allegations that McMahon trafficked Grant to others within the company. Meanwhile, a spokesperson for McMahon reached out to Wrestling Inc. with the following statement: "This lawsuit is replete with lies, obscene made-up instances that never occurred, and a vindictive distortion of the truth. He will vigorously defend himself."
Even still, the larger question remains over what WWE's parent company, TKO Group Holdings, will do in light of the lawsuit. The company made a statement on Thursday evening that McMahon does not control TKO nor does he oversee WWE's day-to-day operations, and while the matter predates the company — formed last year after WWE's merger with UFC — they take Grant's allegations very seriously and will be addressing the matter internally. As for McMahon's future standing as Executive Chairman of TKO, it's yet unclear whether he can be unilaterally forced out of his role. TKO's Certificate of Incorporation, as noted by Brandon Thurston of Wrestlenomics, states that McMahon may have rights to his position until his resignation, death, or incapacitation.
After corresponding with someone who has served on boards of directors, Thurston noted a belief that the aforementioned could only be amended with a majority vote from TKO's shareholders to amend the company's Governance Agreement and the signature of all parties, which includes McMahon. Endeavor holds the majority voting power in TKO, but it's believed getting McMahon to agree to any amendment that expedites his removal will prove difficult. It was further noted that a path of less resistance would be leveraging an agreement that get him to resign, possibly facilitating a sale of his shares to a third party. McMahon holds more than 20 million shares in TKO, which, at an approximate current price of $87, have a market value of $1.7 billion+.