According to reports from yesterday, investors in WWE have filed a lawsuit against Vince McMahon contesting the promotion’s merger with the UFC. Announced after WrestleMania 39, the deal was finalized in September under the moniker TKO Group Holdings.
By virtue of his “domineering personality” and his majority investment in WWE, the lawsuit alleges that Vince McMahon, the former chairman of WWE and current executive chairman of TKO, arranged an “unfair transaction.”
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The lawsuit also states that McMahon rejected higher offers to strike a deal with his longtime friend Ari Emanuel, the CEO of Endeavor and TKO, in order to continue his involvement with the Stamford, Connecticut-based promotion in spite of “stockholder discontent” and “government investigations.” McMahon returned to the WWE board in January after retiring last summer amid allegations of sexual misconduct.
According to the lawsuit, Emanuel made Vince McMahon a preliminary offer after the 78-year-old contacted him after rejoining the company earlier this year. There are rumors that Emanuel’s offer was considered before those of rival bidders. According to the lawsuit, it was a “sham sales process” designed to help Endeavor and keep away bidders who wanted to remove Vince McMahon.
In the meantime, veteran wrestling reporter Dave Meltzer revealed on the most recent episode of “Wrestling Observer Radio” that a WWE stockholder is pursuing another case. Meltzer asserted that more information on that complaint would be made public shortly.
Overall, it says that had Mr. McMahon and his team “made any effort to negotiate in good faith,” the approximately $9 billion sale to Endeavor would have been “far below the offers.”
A comparable lawsuit was also covered by Bloomberg Law. Dennis Palkon is a stakeholder in WWE who filed a lawsuit against the corporation earlier this year, using Vince’s forced return as justification for the transaction that is the subject of his current suit.
Requests for comments on the suits have not received a response from TKO or WWE.
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