Federal Authorities Issue Subpoena to WWE CEO Vince McMahon and Execute Search Warrant

Last month, federal law enforcement agents executed a search warrant on Vince McMahon, the boss of World Wrestling Entertainment (WWE), and served him with a federal grand jury subpoena. The company disclosed this information on Wednesday.

This action signifies an escalation in the ongoing investigation into allegations that McMahon paid millions of dollars to women who had accused him of sexual misconduct over the years.

On Wednesday, WWE also announced that McMahon had gone on medical leave after undergoing major spinal surgery.

McMahon’s leave began on July 21, and although he will remain on medical leave until further notice, he will still continue to serve as the Executive Chairman of WWE, according to the company’s quarterly report submitted to the Securities and Exchange Commission.

When asked for comment, the company stated that it believes the subpoena and search warrant are a continuation of the investigation that started last summer. WWE has been fully cooperative and understands the government’s need for a thorough process.

In a separate statement, McMahon told CNBC that he has always denied any intentional wrongdoing and is confident that the government’s investigation will conclude without finding any evidence of wrongdoing.

Earlier in April, WWE reached an agreement to merge with rival UFC in order to create a new publicly traded company under the control of Endeavor Group.

Both WWE and Endeavor expect the deal to be finalized in the second half of this year, as stated by WWE on Wednesday.

The search warrant and subpoena on July 17 marked the one-year anniversary of the news that federal prosecutors and the SEC were investigating WWE and McMahon for their payments to women.

In the SEC filing on Wednesday, WWE stated that it has received legal demands, both voluntary and compulsory, for documents from federal law enforcement and regulatory agencies in relation to the investigation and related matters.

Linda McMahon, Vince McMahon’s wife who previously served as CEO of WWE, was a member of former President Donald Trump’s Cabinet as the administrator of the U.S. Small Business Administration.

The disclosure of Vince McMahon’s federal search warrant and grand jury subpoena came just a day after Trump, a long-time friend of McMahon’s, was indicted by a federal grand jury in Washington, D.C., on serious felony charges related to his attempts to overturn the results of the 2020 presidential election.

During the three and six months ending on June 30, WWE incurred expenses of $5.3 million and $7.1 million, respectively, related to costs incurred in connection with a separate investigation conducted by a special committee established by the company’s board.

McMahon has agreed to reimburse WWE for all reasonable costs associated with the special committee’s work, and to date, he has already paid approximately $17.4 million to cover these costs. The filing does not specify if McMahon will need to reimburse WWE further.

The company stated that the Special Committee investigation was concluded in the fourth quarter of 2022, but related government investigations are still ongoing.