WWE has been experiencing a period of record growth and posting unprecedented profits but the benefits of this boom do not seem to be far-reaching within the organization. A new report from Wrestlenomics has chronicled multiple issues that have led to a decline in employee morale behind the scenes since the WWE-UFC merger in September 2023.

A big reason for this merger was to consolidate services under the branding of Endeavor, which resulted in significant layoffs in multiple departments at the time.  Since then, the workload for the remaining employees has increased significantly with some people saying that they’re working 50 to 60 hours per week, particularly during the WrestleMania season. In addition to the responsibility in their WWE role, many have also been assigned additional UFC-related tasks.

The compensation for employees has not kept up with the increased workload, however, with multiple staff members saying that they’ve received a meagre 3% cost-of-living raise this year. Many with strong performance reviews, have been told they would not be receiving comparable raises due to budget constraints set by upper management.

The same constraints do not seem to apply to the top brass, however. In addition to bonuses received by top executives at the time of the merger, the nearly 50% increase in Endeavor Group Holdings shares since the time has helped people in administrative positions amass more wealth. The TKO Group Holdings CEO Ari Emanuel has reached billionaire status for the first time thanks to this significant increase in share values this month. This is in stark contrast to the cost-of-living raises given to employees which many argue hardly keeps pace with the rising living costs around the areas of WWE Headquarters in Connecticut and New York

• How Did The Rock’s Appearance Affect SmackDown TV Ratings

In addition to the limited increase in pay, reducing employee perks has also led to staff members increasingly feeling undervalued, while the management continues to emphasize the value of its workforce in town hall meetings. Some significant perks that have been discontinued include the removal of the peer-recognition initiative called ‘WWE Superstar’, as well as the elimination of complimentary live event tickets for employees.

This decline is in addition to frustration within the talent side, specifically among the female roster members. It’s been reported recently that female talents have been frustrated with their WrestleMania build and a recent WWE departure has left many feeling insecure about their position. You can check out more about it here.

• Carmella Breaks Silence After Unceremonious End To WWE Run

TKO, the parent company of both UFC and WWE is all set to add another sports league to its profile very soon in association with the Kingdom of Saudi Arabia.

The American media conglomerate has been in talks with The Kingdom’s Public Investment Fund to launch a new boxing league according to New York Times. Per the site, Sela, a subsidiary of the Saudi PIF will be the major investor behind this league with TKO serving as the management entity.

Current UFC head Dana White is poised to be the managing partner for this new endeavour. TKO has been offered an equity stake and a share of the revenue in return of their services and they’ll earn a management fee of close to $30 million a year.

While an official statement from TKO on the matter claimed that they had ‘nothing to announce,’ the report suggests that this new partnership could be made official ‘within weeks.’ UFC’s US TV media rights deal with ESPN is set to expire this year and the combat sports giant could try to bundle the rights for the new boxing league with UFC to get it off the ground.

• Dana White: ‘WWE Is Good At What They Do But Relationship with UFC is Very Separate’

The Saudi government has backed some of the biggest boxing fights of history in recent years. This includes the recent faceoff between Oleksandr Usyk and Tyson Fury which resulted in Usyk being crowned the first undisputed heavyweight champion in more than a generation.

This new league is part of the continuous efforts from the Saudi government to change the country’s image and draw attention away from human rights violations with various sports programs, generally known as sports washing.

TKO Group reported its Q3 2024 results today, highlighting a 14% year-over-year increase in WWE revenue, UFC sponsorship growth, and raised full-year guidance, alongside a focus on international expansion and new media partnerships. TKO Group Third Quarter 2024 Earnings can be viewed in their entirety at investor.tkogrp.com.

Performance Breakdown

WWE Segment

WWE reported strong growth with Q3 revenue reaching $326.3 million, up 14% year-over-year, largely due to increased media rights, live events, and sponsorships.

Sponsorship revenue was a notable success, with TKO emphasizing its potential as an underappreciated revenue stream. The upcoming Netflix deal is expected to further boost WWE’s sponsorship and site fees.

WWE expanded its international presence, holding 18 events outside the U.S., including the successful “Bash in Berlin” event in Germany.

UFC Segment

UFC’s Q3 revenue totaled $354.9 million, contributing significantly to TKO’s overall revenue. This marked an 11% decline year-over-year, driven by fewer marquee events, though sponsorship revenue increased by $10.2 million.

Strategic Highlights and Future Outlook

Synergies: TKO reported progress in achieving cost synergies post-merger, which was a focal point in the earnings call.

Future Guidance: TKO raised its 2024 revenue guidance to $2.745 billion.

Acquisitions: The company is preparing to integrate Professional Bull Riders (PBR) and other Endeavor sports assets.

Q&A Highlights:

UFC TV Rights: Mark Shapiro noted that TKO is looking to maximize UFC’s TV rights value, with ESPN+ subscriptions and ratings performing well.

PPV Model: Shapiro emphasized the strength of UFC’s PPV model both domestically and internationally, stating that many networks are interested.

Boxing Expansion: Shapiro downplayed Dana White’s comments about entering boxing, clarifying that any potential entry would be through partnerships rather than acquisitions, with a goal to modernize boxing’s business model.

UFC Fight Pass: TKO is seeing international growth in UFC Fight Pass subscriptions and plans to keep it separate from other media deals.

Netflix Sponsorships: TKO is exploring new WWE sponsorships globally, including a partnership involving Netflix and Minute Maid.

Talent Retention: Shapiro expressed confidence in talent retention, stating that WWE and UFC are seen as prime destinations, with cost control remaining a priority.

Endeavor Assets: TKO does not plan to pursue further acquisitions beyond recent additions like PBR, focusing instead on optimizing current assets.

AEW’s new TV deals are expected to be announced any day now and if latest reported numbers are to be believed, it will mark a clear success for the company.

John Ourand of Puck News recently provided some inside information on the negotiations between the wrestling company and its TV partners, once again noting that the package is close to being finalized.

According to him, it’s expected to be a four-year deal with three guaranteed years and WBD having the option to extend the contract by another year. The number of $170 million a year that’s been floated is ‘apparently in the ballpark’ according to Ourand.

The deal with see AEW shows airing on TNT, TBS, and TruTV twice a week. It’s part of a strategy from WBD CEO David Zaslav to make the latter two networks more valuable and sport-oriented. This comes after WBD lost the NBA media rights bid to Amazon.

The report makes no mention of the highly anticipated Max streaming deal but they note that AEW is also pitching another separate package to broadcast channels. Though there is no timetable for when the company will start pushing that deal.

This is in reference to the company trademarking ‘AEW: Shockwave’ for a new entertainment show which is rumored to be airing on Fox after SmackDown left the network to return to USA.

The current AEW TV deals are believed to be somewhere in the neighborhood of $70 million per year so if true, the new numbers would be a huge success for Tony Khan’s promotion.

• Tony Khan Teases Creating A Shockwave After Latest Trademark Filing

All Elite Wrestling has received a substantial tax credit from the state of Ohio, in a move that could see AEW establish itself in the Buckeye State. This week, Ohio Governor Mike DeWine announced over $35 million in state tax credits for film, television, and Broadway projects. Of the 17 entities that will benefit, AEW is the only wrestling promotion listed and will receive $1.275 million in tax credit. In a statement, Governor DeWine shared his excitement for what’s to come.

“Ohio is an ideal location for entertainment production; we offer big city backdrops, small town appeal, and everything in between. We’re happy to welcome these productions – and the economic impact they’ll bring – to Ohio.” 

This news for AEW comes at an interesting time given that WWE are mere days away from hosting its annual SummerSlam event in Cleveland. Shortly before WWE announced that the Biggest Party of the Summer was coming to the city, the promotion received $1.68 million in tax credits to WWE through the state’s Motion Picture Tax Credit program.

AEW and Ohio

All Elite Wrestling first arrived in Cleveland, Ohio for its 17th episode of Dynamite that took place in January 2020. The company returned in September 2023 to host its 13th episode of Collision. Several names from AEW call Ohio home include former World Champion Jon Moxley, former TNT Champion Wardlow, and the unfortunately injured Shane Taylor.

AEW has brought a mainstream alternative to WWE across the United States and beyond and Ohio could be the home of a future AEW event soon judging by this tax credit incentive. Stay tuned to SE Scoops for all the latest on AEW and where its future events will take place.

WWE is on the hunt for a new Vice President of Business and Legal Affairs in the latest change to the promotion’s behind-the-scenes dynamic. The promotion recently posted an opening for a ‘Vice President, Business & Legal Affairs – Talent Relations & Talent Development’ in an on-site role in Stamford, CT. A role summary reads as follows:

“Attorney position involved in all legal aspects of Talent Relations and Talent Development for World Wrestling Entertainment, LLC (“WWE”), primarily responsible for negotiation, contract drafting, risk management, legal strategies and policies relating to all talent agreements.”

The ideal candidate will have at least five years of experience as a lawyer with experience in matters relating to media, sports, talent agency, TV production and/or live events. A law degree from a U.S.-based law school is also a must, and they must be admitted to practice law in at least one U.S. jurisdiction 

The role of VP of Talent Relations was previously held by John Laurinaitis, who replaced Jim Ross in the role in June 2004. Laurinaitis himself was replaced in the role by Paul ‘Triple’ Levesque in 2012 but returned in March 2021. He was removed from his post in June 2022 due to the investigation into the Vince McMahon ‘hush money’ scandal and was let go by the company on August 8.

WWE seeking a new Vice President, Business & Legal Affairs – Talent Relations & Talent Development marks just the latest shift to the company’s corporate offices. In April 2024, four names exited the company, including Sue Aitchison who had been with the promotion since 1986. These changes came shortly after the departure of Kevin Dunn who has since been replaced by Lee Fitting as Head of Production.

In a significant shift in sports broadcasting, the NBA has chosen Amazon Prime Video over Warner Bros. Discovery (WBD) for its long-term media rights deal. Despite WBD’s attempt to match Amazon’s impressive $1.8 billion per year offer, the NBA selected Amazon to help maximize the reach and accessibility of its games.

An official statement from the NBA reads, “Warner Bros. Discovery’s most recent proposal did not match the terms of Amazon Prime Video’s offer and, therefore, we have entered into a long-term arrangement with Amazon.”

The NBA’s new arrangement with Amazon is designed to enhance the fan experience by complementing the existing broadcast, cable, and streaming packages under Disney and NBCUniversal arrangements. The league emphasized that all three partners have committed substantial resources to promote the NBA and improve fan engagement.

Expressing gratitude towards their previous partner, the NBA stated, “We are grateful to Turner Sports for its award-winning coverage of the NBA and look forward to another season of the NBA on TNT.”

What This Means For AEW

This move has broader implications beyond the NBA. Warner Bros. Discovery, which is also the media rights partner for All Elite Wrestling (AEW), is in the late stages of negotiating a new deal with the wrestling promotion. With the NBA deal off the table, WBD frees up substantial resources, which could be advantageous for AEW and the terms of their next media rights deal. Stay tuned to SEScoops for further updates on AEW’s next TV deal.

All-Elite Wrestling and Warner Bros. Discovery have an agreement in principle to keep AEW on Turner networks for the next several years.

According to sources in the television industry, AEW and WBD’s deal would add AEW content to the MAX streaming platform, including pay-per-views. It’s unknown how much AEW would earn moving PPVs to streaming.

Two sources emphasized the deal was an agreement in principle only and on paper, but could change as both sides get closer to signing off, but there is an agreement on paper.

An official announcement of an extension could happen within the next several weeks. Garrett Gonzalez and Dave Meltzer corroborated the report on Saturday’s Wrestling Observer Radio.

Exact numbers on the deal weren’t available but were said to be on “the middle to high side” of what the two groups were negotiating.

AEW’s exclusive negotiation window with WBD ended on July 21.

Key Points:

• WWE President Nick Khan and TKO executives Ari Emanuel and Mark Shapiro attended Michael Rubin’s lavish July 4th White Party in the Hamptons

• The event, hosted by Fanatics CEO Rubin, featured A-list celebrities and is significant due to Fanatics’ lucrative merchandise deals with WWE and UFC

WWE President Nick Khan and TKO executives Ari Emanuel and Mark Shapiro joined a host of A-list celebrities at Fanatics CEO Michael Rubin’s annual July 4th White Party in the Hamptons.

The star-studded event, held at Rubin’s $50 million oceanfront mansion in Bridgehampton, saw attendees adhering to an all-white dress code. Notable guests included Kim Kardashian, Tom Brady, Jake Paul, Emily Ratajkowski, and Megan Fox. The party featured performances by Mary J. Blige and a fireworks display.

Rubin, whose company Fanatics has lucrative merchandise partnerships with both WWE and UFC, has turned this into a yearly tradition. The gathering highlights the close business relationships between Fanatics and major sports entertainment brands like WWE and UFC under the TKO umbrella.

Why Fanatics CEO Michael Rubin Loves WWE

Michael Rubin has good reason to invite Nick Khan, Ari Emanuel and Mark Shapiro to his epic Hamptons gathering. Back in April, Rubin called WWE’s growth and potential “absolutely insane” and said the “insatiable demand” for WWE merchandise leaves the world’s top sports leagues in the dust.

Fanatics works with the NFL, NCAA, MLB, NASCAR and countless other leagues, but Rubin couldn’t contain his excitement about WWE.

“The biggest growth sport in my mind Well, are we looking at percents, dollars? What’s wild, I’ll tell you honestly, what’s going on with WWE is insane. If I look at the growth in our WWE business, and it’s a big business already, it’s absolutely insane.”

“NFL is a multi-billion dollar business. Baseball is a multi-billion dollar business. We look collectively within our overall business, if you talk about growth percent, what’s going on with WWE is spectacular.”

Read more about Michael Rubin, the billionaire entrepreneur and philanthropist who founded Fanatics.

Tony Khan has confirmed that the third Forbidden Door PPV from the UBS Arena in New York was a huge success for the company.

The AEW president took part in the post Forbidden Door 2024 media scrum where he talked about things such as the upcoming Wrestle Dynasty PPV from Tokyo Dome which will be a joint show hosted by AEW, NJPW, and CMLL.

During the press conference, Khan also touted the success of the latest AEW PPV. He confirmed that the show drew a million-dollar gate for the third consecutive time:

“What a huge success this PPV has been. This is our third Forbidden Door, what a great partnership. Tonight was not only a great PPV, also a great live event here. Like we said over 11,000 fans here at UBS arena paid and over a million dollars live gate, really really, special. Third straight year with over 11,000 fans and over a million-dollar live gate, which is pretty cool too.”

• Watch: What Happened With Will Ospreay After Forbidden Door 2024 Went Off Air

Tony Khan On Super Heavyweight Championship

One interesting question Tony Khan was asked during the scrum was the potential of adding a ‘meaty super heavyweight championship’ after the match between Samoa Joe and Jeff Cobb at the PPV.

The AEW official mentioned how we’ve seen a lot of ‘meat moments’ in AEW and fans can chant ‘meat’ whenever they want to. On the potential of a title exclusive for the big men, Khan said that such matches are always exciting:

“There are a lot of championships in wrestling, but certainly any time we can get the big men fighting, I love it. Even if we’re not ready for a championship, those matches are exciting and we’ve seen people get engaged when those big guys start fighting and they love chanting ‘meat,'”

Apart from this, Tony Khan also discussed the upcoming Brodie Lee tribute shoes and more. You can check out the full Forbidden Door 2024 media scrum below:

WWE operates on many layers, because there is a complicated business world behind the sports entertainment lights. Nick Khan has been responsible for ushering WWE into a new era, but he is now selling out his remaining shares.

It was revealed on Friday that McMahon is selling up to 8.02 million shares he owns, per Sportico. The shares Vince McMahon has listed for sale are valued at over $776 million, based on TKO’s closing price of $96.76 on Friday. He is not the only person who is unloading a ton of stock, because Nick Khan is also listing all of his remaining TKO shares.

WWE president Nick Khan is also listed as a seller in the prospectus. He plans to sell his entire stake of 234,424 shares, including restricted stock units he has accumulated over time.

Despite these sales, Khan will continue in his current role at the company, as confirmed by a source familiar with the transaction who wished to remain anonymous and was not authorized to speak publicly on his behalf.

It’s important to understand that the filing only makes these shares eligible for sale; it doesn’t necessarily mean they will be sold. However, in the corporate world, such filings typically precede the actual sale of the shares soon after. Generally, in the business sector, when shares are listed like this, they tend to be sold.

Nick Khan’s Life Prior To WWE

Before joining WWE, Khan served as Co-Head of Television at CAA, where he represented top figures and organizations in sports media, negotiating media rights deals worth billions of dollars. Khan came on board at WWE in 2020 and played a pivotal role in driving the company to achieve record revenue and profitability.

He started his career as a practicing attorney, so he understands the intricacies of contract talks. Nick Khan and The Rock have also been friends since childhood, giving another strong connection to the pro wrestling business.

It will be interesting to see what his next move is, especially if he sells all of his stock, but remains with the company.

SEScoops will have more on this still-developing story as additional information is made known.

Vince McMahon is selling his remaining shares in TKO Group Holdings, marking the end of his over 50-year association with the pro wrestling business.

It was revealed in a prospectus on Friday that McMahon might sell up to 8.02 million shares he owns, per Sportico. These shares are valued at more than $776 million, based on TKO’s closing price of $96.76 on Friday.

It’s important to note that the filing simply makes the shares eligible for sale and does not guarantee that they will be sold. However, in the corporate world, such filings generally lead to the actual sale of the listed shares shortly thereafter. That being said, in the business world, shares put up like this usually sell.

McMahon has been inching toward a full departure from WWE for quite some time. Before the announcement on Friday that he might sell all his TKO stock, McMahon had sold $1.365 billion of TKO stock since November. If he sells his remaining shares at market value, he will have made over $2 billion from TKO stock in six months.

If you’re wondering if Vince will start a new pro wrestling company, that doesn’t seem to be in the cards. Dave Meltzer of the Wrestling Observer Newsletter reports, while Vince is interested in pursuing new business opportunities in the future, starting a new wrestling promotion is not on his agenda. The general consensus in the wrestling community is that it would be impractical for him to start from scratch and compete against an established giant like WWE.

McMahon isn’t the only person selling all of their TKO stock, because WWE President Nick Khan is doing the same.

Vince McMahon’s WWE Exit

McMahon has been with WWE for decades, first entering the company in the 1960s. After taking ownership from his father, Vince led the company into a global superpower. Bill Simmons’ upcoming Netflix docuseries will undoubtably tell that story in full.

In 2022, McMahon resigned from WWE after it was revealed that the company had made payments to settle sexual misconduct claims against him. However, as the main shareholder, he reappointed himself as chairman at the end of the year to help sell the company. In September, Endeavor Group Holdings, the company that owns UFC, bought WWE and formed a new publicly traded company called TKO.

McMahon resigned from his position as executive chairman of TKO in January following a sex trafficking lawsuit that accused him and other executives of sexual coercion and other serious acts. Slim Jim pulled their sponsorship just prior to the 2024 Royal Rumble premium live event, causing TKO CEO Ari Emanuel and TKO President and COO Mark Shapiro to urge McMahon’s resignation. 

TKO Group Holdings was created after Endeavor Group Holdings acquired WWE the previous year.

Dwayne Johnson was awarded 96,558 shares of TKO Group Holdings Class A common stock on Sunday, April 7, the day after returning to the ring at WrestleMania 40. The shares are valued at approximately $9.4 million.

According to a new financial filing, the previously restricted stock units vested upon “completion of certain services described” in his Independent Contractor Services and Merchandising Agreement dated January 22, 2024. He joined TKO’s 13-person Board of Directors the following day.

That agreement allows WWE to use The Rock’s name, image and likeness for up to ten years in exchange for approximately 400,000 shares of TKO stock currently valued at approximately $39 million.

According to Sportico, the first 25% of shares were awarded in January when the deal was completed. The next 25% will be awarded at the end of the year. Another 25% distributed monthly throughout 2025 and the remaining 25% was the completion of the ‘certain services.’

WWE is in a new era under Triple H, and that means the old guard is becoming a thing of the past. Vince McMahon ran the company for decades, but he will soon have even less of a stake in the business. 

New filings indicate that TKO and Endeavor are in the process of acquiring shares from Vince McMahon. 

Through separate agreements, Endeavor is set to purchase 1,642,970 shares for a sum of $142.6 million, while TKO is poised to acquire an additional 1,853,724 shares for approximately $150 million. This amalgamation of transactions amounts to a grand total of roughly $293 million.

Upon the completion of these deals, which are slated to be finalized on Tuesday and Wednesday respectively, Vince McMahon will retain ownership of 8,021,405 TKO shares. A straightforward calculation reveals that post-transaction, Vince’s stake in TKO will go down to around 4.7%.

NEW FILING: TKO and Endeavor are buying shares from Vince McMahon.

In two agreements, Endeavor is buying 1,642,970 shares for $142.6M and TKO is buying an additional 1,853,724 for about $150M, for a total of about $293M.

By my count, after the transactions close on Tuesday and… pic.twitter.com/ibVQDvni4H

— Brandon Thurston (@BrandonThurston) April 8, 2024

Vince McMahon’s TKO Stock Sell-Off

Vince McMahon has unloaded a lot of WWE stock in recent memory. McMahon sold even more TKO Stock at the end of March, as he unloaded 3,484,006 more shares. This sale added to the 5,350,000 shares he sold in early March.

McMahon resigned from the company after Janel Grant’s lawsuit went public. Slim Jim pulled their sponsorship just before the 2024 Royal Rumble event, and that was the final nail in his proverbial coffin.

Ultimately, McMahon was urged by TKO CEO Ari Emanuel and TKO President and COO Mark Shapiro to resign. Now, Vince is no longer an active part of the company, and it appears that he will have even fewer shares soon enough.

Endeavor, the parent company of TKO Group Holdings/WWE is to be taken private and will see all shares acquired by private equity firm Silver Lake. 

As part of the deal, Endeavor stockholders will receive $27.50 per share in cash, representing a premium of 55% to the closing price of $17.72. This number was before Silver Lake said in October 2023 that they were working on a proposal to take the company private. 

What This Means for TKO

Endeavor has said that it would not consider a sale of its majority interest in TKO Group Holdings, which consists of both WWE and the UFC. TKO is not party to this transaction and will remain a publicly traded company, the companies said on Tuesday.

While TKO is not expected to be directly involved with this move, the company is seeing a benefit from the change. After news of Endeavor’s privatization was announced, stock in the WWE company rose significantly. It had been trading at $86.66 a share before the news broke and rose to $90.78 a share within 90 minutes of the announcement. 

TKO Group Holdings

TKO was officially launched in September 2023. It was announced back in April 2023 that Endeavor was to acquire WWE as part of a historic $9.3 billion deal. The merger of WWE and UFC into TKO did not come without casualties as over 100 employees were let go last year in efforts to synchronize the two sports promotions. WWE would host its first wave of talent releases post-TKO launch that same month. 

WWE was removed from WWE and the company is doing their best to wash him from their history. This all stems from Janel Grant’s lawsuit going public, and he resigned from his role in WWE shortly after that. Now, he is getting out of the TKO business even more by selling off more shares.

Vince McMahon is selling even more TKO Stock as he just unloaded 3,484,006 more shares. This sale adds to the 5,350,000 shares he sold in early March.

McMahon Sells More TKO Stock

Vince McMahon’s mass selloff of TKO Stock continues as he unloaded 3,484,006 shares, as revealed in an SEC filing released by TKO today.

The filing details McMahon’s sale agreement with an unaffiliated bank, obligating him to deliver up to 3,484,006 shares of TKO’s Class A common stock to settle the agreement.

McMahon and the bank amended the agreement on March 1, 2024. The physical settlement, divided into 15 parts, concluded between March 5, 2024, and March 25, 2024, resulting in McMahon receiving approximately $100 million.

How Much TKO Stock Vince McMahon Has Left

In early March, Vince McMahon also sold 5,350,000 TKO shares at $77 each, generating $411,950,000 from the transaction

Despite the recent sales, McMahon still retains ownership of roughly 11.5 million shares of TKO Group, indicating his continued interest in the company’s performance and future prospects.

He still does not have enough stock to be able to arrange any sort of takeover like he did after his first retirement. We will have to see if WWE continues avoiding any mention of Mr. McMahon on television.

For what it’s worth, TKO Group Holdings stock has shot up in recent memory. Many attribute that rise in value to their impending Netflix deal.

SEScoops will have more of this story, and so much more. Please keep checking back throughout the day for more headlines.

WWE is celebrating a boom in popularity right now, and their parent company, TKO is raking in the cash. Some believe that RAW’s new Netflix deal has given a huge surge for the company’s stock price.

TKO Group Holdings experienced a significant surge of over 7% in mid-day trading, reaching around $86 per share. Bank of America raised TKO’s price target, attributing the optimism to the company’s recent partnership with Netflix.

TKO’s Stock Price Surge

On Monday, Citi reiterated its Buy rating on TKO Group Holdings (NYSE: TKO) and raised the stock price target to $130 from $125. This adjustment came after TKO Group’s recent deal with Netflix (NASDAQ:NFLX), which didn’t cause the expected increase in the company’s share price.

Citi’s analysis identifies three factors impeding the stock’s performance: the potential EDR transaction, the ongoing UFC lawsuit, and McMahon’s share sales. Despite these challenges, Citi sees a favorable risk-reward balance for TKO Group, with the current share price of around $80 offering significant upside potential to their $130 bull case scenario and limited downside to their $65 bear case.

Wednesday morning saw TKO trading up over 7%, reaching around $86 by mid-day. Bank of America has also raised its price target for TKO, attributing the increase to optimism surrounding the Netflix deal.

This is certainly a good sign for the company as they round the corner into the road to WrestleMania 40, a time when they historically see another surge in business.

Vince McMahon’s Resignation From WWE

Vince McMahon was removed from power after Janel Grant’s lawsuit exposed a number of heinous allegations, including sex trafficking and assault. He resigned from his position with the company after Slim Jim pulled their sponsorship prior to the 2024 Royal Rumble event.

Since McMahon’s departure, WWE has continued to grow, and their new Netflix deal is a sign of that. Only time will tell where RAW goes from November to December 2024, as USA Network and Netflix’s deal has a three-month gap. They will certainly cash in with a huge Netflix deal once 2025 starts.

SEScoops will have more on this story, and many more, as we continue down the road to WrestleMania 40. For more on this story, and so many more headlines, please keep checking back throughout the day.

Vince McMahon is no longer officially associated with WWE, a company he boosted into an internal publicly traded company. He recently sold a ton of stock, but what is his standing in the company now?

TKO disclosed today that Vince McMahon sold 5,350,000 TKO shares at $77 each, generating $411,950,000 from the transaction. According to the filing, McMahon retains ownership of 15,002,105 shares. As of today’s closing price of $81.39 per share, McMahon’s total investment in TKO is valued at $1,221,021,326.

McMahon’s Big Pay Day

Vince McMahon’s association with WWE came to an abrupt turning point following his resignation from his role within the company. Now, he is cashing in after leaving the company he helped build and merge into a global conglomerate.

In a recent disclosure, it was revealed that McMahon opted to sell a substantial portion of his TKO shares, totaling an estimated $412 million. This strategic move not only serves to enhance McMahon’s financial standing but also raises a lot of questions about how he will spend that money.

With the sale of 5,350,000 shares, McMahon’s remaining stake in TKO now stands at around 15 million shares, constituting approximately 9% of the total outstanding TKO stock. So, he doesn’t own enough of the company to perform any kind of takeover in the future, as he did after his first “retirement” when the story first broke that he had a ton of NDAs and hush money agreements floating around.

Vince McMahon’s Resignation From WWE

Vince McMahon was forced to resign from WWE after Janel Grant’s lawsuit went public, along with the heinous allegations against him. The minute Slim Jim pulled their Royal Rumble in the eleventh hour before the big event, WWE knew they couldn’t have that slippery slope.

TKO CEO Ari Emanuel and TKO President and COO Mark Shapiro reportedly “urged” Vince to step down, and leave the company. Not long after his resignation was announced, Slim Jim returned to sponsor the Royal Rumble, and they even got an advertisement as part of LA Knight’s entrance during the show.

Vince McMahon has since been removed from WWE content to the best of their ability. His face was even blurred during cut scenes in WWE 2K24.

SEScoops will have more updates on this story, and so much more in the coming months. Keep checking back for more details on the stories you need.

Mark Shapiro has once again reiterated that Vince McMahon is gone from TKO Group Holdings and that he will not return. 

While McMahon was able to force his way back into WWE in January 2023, his most recent resignation happened under much different circumstances thanks to the launch of TKO Group Holdings last September. 

Mark Shapiro on Vince McMahon

Speaking at the Morgan Stanley conference, TKO’s COO Mark Shapiro addressed McMahon’s departure and his recent offloading of TKO stock. Shapiro made it clear that TKO did not participate in the sale. Shapiro added that McMahon does not work for TKO, does not go to the offices and is not coming back to the company. 

Plans for Branding

Over the past year, WWE has seen an increase in branding usage on camera at WWE events. During the conference, Shapiro said that “not to criticize Vince McMahon” but he believes WWE didn’t utilize enough branding opportunities in arenas. UFC, the other half of TKO, uses arguably too many, according to Shapiro, who said that WWE will continue to use sponsors on WWE ring assets. 

WWE RAW & Netflix

In January 2025, Monday Night Raw will move to Netflix in a blockbuster deal that will mark the end of WWE’s flagship show on broadcast television. Shapiro said that “not in my wildest dreams” did he expect Netflix for the Raw deal, and that the conversation was originally about WWE NXT. Shapiro credits WWE President Nick Khan and TKO CFO Andrew Schleimer for negotiating the deal.

What’s to Come? 

Shapiro was pleasantly surprised by the buzz that this year’s Royal Rumble and Elimination Chamber events made. Looking ahead, he said fans can expect celebrities from the William Morris-Endeavor (WME) agency at WrestleMania. Partnering with Fanatics for WWE World is going well, and can be considered a blueprint for future projects.

Vince McMahon’s story with WWE may be over after he resigned from his position. That being said, the company still made him a very rich man, with the ability to cash out his massive stockpile of assets, and he decided to cash in on some of those options today.

McMahon recently sold 5,350,000 shares of TKO, worth around $412 million. It’s unclear why he needs the money, but he’s certainly getting a nice windfall of cash from this exchange.

Vince McMahon Unloading Stock

In a recent filing, it has been disclosed that Vince McMahon has sold a significantly large portion of his shares in the company. The filing reveals that McMahon has divested 5,350,000 shares of TKO, amounting to a total value of approximately $412 million.

Following this transaction, McMahon’s remaining stake in TKO stands at around 15 million shares, which corresponds to approximately 9% of the total outstanding TKO stock. This move indicates a substantial reduction in McMahon’s ownership interest in the company, although he still retains a significant portion of TKO shares.

Vince McMahon still has a ton of stock, but it’s not enough where he can re-insert himself into the WWE fold as he did before. The fact that he is selling even more stock would also give an idea that he has no intention to come back in the same way.

NEW FILING: Vince McMahon sells 5,350,000 TKO shares, a value of $412 million.

After the transaction, he has about 15 million shares, or about 9% of all TKO stock. pic.twitter.com/SropbXk5Dg

— Brandon Thurston (@BrandonThurston) March 5, 2024

Mr. McMahon’s WWE Exit

McMahon resigned from his position with the company after Janel Grant’s lawsuit included damning allegations of sex trafficking and so much more. Now, we will have to see if anything happens with that lawsuit, or if they decide to settle out of court.

Vince McMahon helped build WWE into what it became today, but he no longer has an active hand in the company’s product. It remains to be seen if he will hold onto every bit of TKO stock he has left, but he’s certainly not opposed to selling some of it.

SEScoops will have more updates on this story as they are available. 

Dwayne “The Rock” Johnson now officially owns the rights to his iconic wrestling persona, according to the WWE 2023 Earnings release. The announcement showed the transfer of intellectual property from WWE to Johnson’s affiliates.

Per an IP Assignment Agreement (via PWInsider), WWE assigned ‘The Rock’ trademark along with associated trademarks, service marks, ring names, taglines, and other related intellectual property assets to Johnson’s affiliates.

A search of the US Patent & Trademark Office database shows marks such as ‘The Rock’ are now owned by a Florida-based entity called DJIP, LLC.

According to a new SEC filing, Johnson’s new IP includes the following nicknames and catchphrases:

Names:

• The Rock
• Rocky Maivia
• Team Corporate
• Rock Nation
• The Nation
• Roody Poo
• Candy Ass
• Jabroni
• The Samoan Sensation
• The Blue Chipper
• The Brahma Bull
• The People’s Champion
• The Great One
• The Most Electrifying Man in Sports and Entertainment

Catchphrases:

• If you smell what The Rock is cooking
• Know Your Role and Shut Your Mouth
• Team Bring It
• Just Bring It
• The People’s Elbow
• Rock Bottom
• Finally, The Rock has come back to …
• It doesn’t matter what…
• Blue Hell
• The millions… (and millions)
• Rockpocalypse
• Project Rock
• The most electrifying man in sports and entertainment

Additionally, WWE entered into an Independent Services Contractor and Merchandising Agreement with Johnson and his affiliates, wherein Johnson agreed to provide promotional services to WWE.

Under the terms of the agreement, Johnson will license the assigned IP and his name and likeness to WWE for use in certain licensed products related to professional wrestling for up to 10 years. In exchange for his services and the IP licenses, Johnson received restricted stock units worth $30,000,007 in Class A common stock.

The Johnson Equity Award will vest in stages: 25% immediately, 25% upon completion of specified services, 25% by December 31, 2024, and the remainder in equal monthly installments from January 31, 2025, to December 31, 2025.

Cashing in on his brands

Prior to this agreement, Johnson received annual royalties from WWE for his appearances in WWE-produced content, merchandise, and services, totaling approximately $491,000 for the year ended December 31, 2023. 

Following the agreement, Johnson will continue to receive annual royalties from WWE and will also earn royalties from licensed products utilizing the assigned IP and his intellectual property rights, as outlined in the Johnson Services Agreement.

This comes after Johnson was appointed to TKO Group Holdings Board of Directors in January. He said at the time:

“My grandfather, High Chief Peter Maivia, and my dad, Rocky ‘Soulman’ Johnson, would’ve never thought this day would come. Which is why I’m very humbled to have a seat at the table that has decades of history and family legacy for me. A table that my family helped to build. Being on the TKO Board of Directors, and taking full ownership of my name, ‘The Rock’, is not only unprecedented, but incredibly inspiring as my crazy life is coming full circle.”

TKO Group Holdings is not in contact with former Chairman Vince McMahon, according to TKO COO Mark Shapiro.

McMahon stepped down from WWE one month ago due to the shocking allegations made against him in Janel Grant’s lawsuit. McMahon has claimed that the litigation is rife with fabrications and has claimed he is completely innocent. Former WWE executive John Laurinaitis, who is named in the suit, has claimed he is a victim, not a predator, in this situation.

Mark Shapiro On Vince McMahon

During TKO’s recent 2023 fourth quarter earnings call, Mark Shapiro was asked about the McMahon situation and a potential impact on TKO. Shapiro made clear that TKO has continued to distance itself from the 78-year-old McMahon.

“He’ll do whatever he’s going to do, and we’re all on the sideline. We’ll have a look, we’ll see. We have no idea on timing. We’re not having any discussion with him. He’s given us no point of view on his motive or his plans to sell or not sell, or if he does, how much. So, we’re going to wait around and find out just like you.”

Shapiro did not specifically address the allegations against McMahon. Ari Emanuel, the CEO of both Endeavor and TKO Group Holdings, did not comment on McMahon. 

What’s Next for TKO?

With McMahon gone, Ari Emanuel has replaced the 78-year-old as the Executive Chair of TKO. Emanuel already serves as the company’s CEO. Steven R. Koonin has been appointed the Lead Independent Director of the McMahon allegations and how it relates to TKO. Both appointments came into effect as of February 22. 

H/T – Deadline

TKO has given a clear statement regarding the departure of Vince McMahon who despite his exit, is said to have a significant amount of voting power. 

McMahon stepped down from WWE one month ago due to the shocking allegations made against him in Janel Grant’s lawsuit. McMahon has claimed that the litigation is rife with fabrications and has claimed he is completely innocent. Former WWE executive John Laurinaitis, who is named in the suit, has claimed he is a victim, not a predator, in this situation.

TKO Group Holdings Comments

In the 2023 Earnings filing, TKO Group Holdings had the following to say about McMahon in their “Legal Proceedings” division of the filing: 

“Vincent K. McMahon, who served as Executive Chair of the Company’s Board of Directors until January 26, 2024, controls a significant portion of the voting power of the issued and outstanding shares of the Company’s common stock. 

Mr. McMahon has agreed to make future payments to certain counterparties personally. In accordance with the SEC’s Staff Accounting Bulletin Topic 5T, Miscellaneous Accounting, Accounting for Expenses or Liabilities Paid by Principal Stockholders (“Topic 5T”), the Company concluded that these amounts should be recognized by the Company as expenses in the period in which they become probable and estimable.

In connection with the acquisition of WWE, the Company assumed $3.5 million of liabilities related to future payments owed by Mr. McMahon to certain counterparties, of which $2.0 million was paid directly by Mr. McMahon during the period of September 12, 2023 through December 31, 2023.

“During the period of September 12, 2023 through December 31, 2023, the Company recorded $3.5 million of expenses associated with payments made directly by Mr. McMahon to certain counterparties. These costs are included within selling, general and administrative expenses in our consolidated statements of operations.

Additionally, during the period of September 12, 2023 through December 31, 2023, the Company recorded $3.5 million of costs associated with payments made directly by Mr. McMahon related to WWE’s global headquarters lease. These costs are included within finance lease right-of-use assets, net in our consolidated balance sheets. These payments are considered non-cash capital contributions and are included as a component of principal stockholder contributions in our consolidated statements of stockholders’/members’ equity.

“As of December 31, 2023, total liabilities of $1.5 million are included within accrued expenses in our consolidated balance sheets related to future payments owed by Mr. McMahon to certain counterparties.

What’s Next for TKO? 

With McMahon gone, Ari Emanuel has replaced the 78-year-old as the Executive Chair of TKO. Emanuel already serves as the company’s CEO. Steven R. Koonin has been appointed the Lead Independent Director of the McMahon allegations and how it relates to TKO. Both appointments came into effect as of February 22. 

The agreement for The Rock to battle Roman Reigns at WrestleMania was finalized weeks prior to Cody Rhodes winning the Royal Rumble. This was not a deal they made public, but it was part of his appointment to TKO’s Board of Directors.

The Rock’s Big WrestleMania 40 Deal

Last month, The Rock was appointed to the TKO Board of Directors. As a component of the arrangement, he acquired complete ownership of the “The Rock” name and received $30 million in company stock.

Dave Meltzer noted on Wrestling Observer Radio, that The Rock wrestling Reigns at WrestleMania was also part of the agreement. This deal was made on January 3rd, and that begs the question as to why WWE still booked Cody Rhodes to win the 2024 men’s Royal Rumble match.

When (Rock) made the deal on January 3 to come in (facing Roman at WrestleMania) was part of the deal. Why Cody Rhodes won the Royal Rumble is a question that I cannot answer because nobody will answer it for me.

Apart from Nick Khan and Ari Emanuel, very few individuals, if any, were informed about the arrangement for Rock to challenge Reigns at WrestleMania. The prevailing sentiment backstage during the Royal Rumble was that it would be Rhodes vs. Reigns.

I reported on January 28th that, “The only people who really know what is happening with Rock are the people at the very top of the company, and they are all playing it very close to the vest.” This was after Cody Rhodes won his second consecutive Royal Rumble match and punched his ticket to WrestleMania 40.

The only people who really know what is happening with Rock are the people at the very top of the company, and they are all playing it very close to the vest.

— Aaron (@AaronVarble) January 28, 2024

WWE Will Use The Rock Controversy

WWE now intends to incorporate the negative response to Rhodes being excluded from the WrestleMania main event into the storyline. Dave Meltzer continued to explain that everything played out in this way, but there is no way to tell how the storyline will advance from this point on.

(It) played out the way they wanted it to play out. The plan as of Friday night was Seth Rollins and Cody Rhodes and we’ll see how it plays out because now they’re trying to turn it into a story and we’ll see how the story goes.

The Only Way WWE Would Change WrestleMania Main Event Plan

I previously reported that The Rock taking Cody Rhodes’ spot at WrestleMania was seen as a “power play.” When inquiring if this situation resembles his attempt to enter the DC Cinematic Universe with Black Adam, where he wanted to take control of the operation, I was informed that it’s a “great analogy.”

WWE is also well aware about fan backlash. It has become impossible to overlook at this point, with USA Today, TMZ, and other outlets running stories about fans being upset over The Rock taking Cody Rhodes’ spot against Roman Reigns at WrestleMania 40.

When inquiring whether the fan backlash could alter the prospective WrestleMania plans, the response was, “there’s no chance in hell.” The only thing that could change the direction for WrestleMania’s main event at this point is Dwayne Johnson changing his mind.