Are Vince McMahon’s days at TKO-Holdings numbered? While Vince McMahon is the epitome of a karma Houdini, his ability to slip out of trouble could be over. Let’s look at Vince’s current situation and why appears that TKO-Holdings may ask Vince to step down.

Back in October, WrestleLamia raised the question “Is Vince McMahon Being Put Out to Pasture?” We examined Mr. McMahon’s removal from creative despite Ari Emanuel’s previous statement that he wanted McMahon in creative as long as Vince wanted.

We also noted that Ari Emanuel might feel McMahon is better utilized in other areas such as negotiating TV deals and sharing his contacts in the political and entertainment field. Finally, we suggested the possibility of Vince serving largely as a figurehead, a familiar face who presents a feeling of stability.

Vince McMahon's Potentially Precarious Position

However, this could all change because McMahon is under federal investigation and TKO-Holdings is acknowledging how McMahon could negatively impact the company. TKO-Holdings recently issued this statement:

“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.”

This followed a statement filed by the WWE earlier this year that noted:

As previously disclosed on June 17, 2022, a Special Committee of the Board of Directors was formed on June 15, 2022 to investigate allegations of misconduct by Vince McMahon. As previously disclosed, the Special Committee investigation was completed during the fourth quarter of 2022. However, related government investigations remain ongoing. On July 17, 2023, federal law enforcement agents executed a search warrant and served a federal grand jury subpoena on Mr. McMahon. No charges have been brought in these investigations. The Company has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters. Fully consistent with prior expectations, the Company and Endeavor expect their transaction to be closed in the second half of 2023. Additional information with respect to this item may be found in Note 18, Commitments and Contingencies, to the Consolidated Financial Statements.”

TKO-Holdings' statement concerning McMahon's potential negative impact on the company raises questions why TKO-Holdings would keep someone who is such a liability on its board. Is this TKO-Holdings way of beginning the process of removing him? If not, how would shareholders react if McMahon is indicted and TKO's stock drops? This could lead to a shareholder suit by stockholders alleging TKO ignored its duty to remove a potential risk.

McMahon Sells a Portion of His Shares

McMahon recently sold a sizable portion of his shares in TKO-Holdings. Dave Meltzer recently speculated about this in the 13 November Wrestling Observer Newsletter, noting that the sale won’t affect McMahon’s position as Chairman of the Board:

McMahon has to maintain seven million shares to keep his position as Chairman of the Board of Directors, and even when his sale goes through, at 20.44 million shares, he is comfortably above that threshold.

H/T Wrestling Observer Newsletter

There has been speculation about why McMahon sold his stock, particularly since TKO-Holdings’ value has dropped significantly since the company went public. Why wouldn't McMahon wait for the stock's value to rise? Does he have any reason to believe it's going to drop?

The stock sale will likely invite more discussion about McMahon and what TKO-Holdings thinks about his position as Chairman of the Board.

Is TKO Laying the Groundwork for McMahon's Exit?

TKO-Holdings appears to be laying the groundwork so it can justify requesting Vince McMahon to resign if he is charged by the federal government. At this point, there is no information on what information the federal government has and what they are trying to prove. McMahon may have a good idea and if so, TKO-Holdings likely does also.

However, McMahon finds himself in a different situation in that he is only part of the empire that is TKO-Holdings. McMahon is not indispensable. Ari Emanuel showed how he reportedly dealt with McMahon as a liability in creative by giving Triple H full authority and moving Vince to a different role. Emanuel did this despite previous comments that Emanuel wanted McMahon in creative as long as Vinnie Mac was working in TKO-Holdings.

The big question now is whether TKO-Holdings will wait to what happens with the federal government's investigation into McMahon or it opts to strongly suggest he consider returning to retirement.

Mr. McMahon's Achievements and Setbacks

If Vince McMahon is forced to resign (or more likely, decides that retirement wasn’t so bad and “retires”), you’ve got to say he’s had a good run. He managed to turn the National Wrestling Alliance into an indie circuit, put the American Wrestling Association out of business, and more importantly, transformed the WWF from a regional territory into a global entertainment empire. However you may feel about his personal life, his business dealings have been impressive.

All the while, he’s dodged various allegations (not to mention made some out-of-court settlements with convenient nondisclosure agreements) and dealt with setbacks including the XFL (twice), the World Bodybuilding Federation, and other business ventures. Vince and the WWE were successful in getting a potentially financially crippling lawsuit dismissed (the class action lawsuit alleging the WWE downplayed the dangers of concussions). Most of all, Vince successfully fought off the federal government’s attempt to nail him for steroid distribution. When you take this all into consideration, is it any surprise Vincent Kennedy McMahon has a reputation for being bulletproof.

McMahon may walk away from the current federal investigation without a scratch or he may be in for the fight of his life. Whatever happens, expect him to face it with the same tenacity he's displayed throughout his career. The only difference is that he may not be doing so with a corporation behind him.

Do you think TKO-Holdings is preparing to give Vince an early retirement?