The influence and impact of Vince McMahon on the WWE industry have been immense, shaping pro wrestling into a household name. His genius has played a pivotal role in the industry’s evolution. However, his career is marred by numerous controversies, and the latest involves serious allegations from Janel Grant, leading to his resignation. The repercussions are evident as the shares for the TKO company, housing UFC and WWE, have experienced a noticeable decline.
Last year, TKO was established as a media conglomerate, resulting from the merger of WWE and UFC’s parent company, Zuffa. The company boasts a combined net worth exceeding $10 billion, with Mr. McMahon being a significant contributor to that value. However, shortly after his resignation, the company’s shares experienced a substantial decline.
In just five days, the company’s shares, which were initially valued at $95.42 USD, dropped to $86.54 USD—a significant decrease of approximately $10, highlighting the magnitude of the downfall.
TKO shares closed down 1% today.
The stock began falling around 2 pm ET, then TKO and Endeavor both climbed in the last 20 minutes before the market closed. pic.twitter.com/wMfIPvUFi7
— Brandon Thurston (@BrandonThurston) January 26, 2024
Recently, TKO shares experienced a substantial surge in a single day after The Rock joined the board, and WWE secured a significant deal with Netflix for the red brand. The shares, which were initially valued at $77.41, witnessed a jump of almost $20, reaching up to $95.42. However, the share has gradually seen a decline since then, and it will be interesting to observe how much further it may fall after McMahon has resigned.
Why Did Vince McMahon Resign TKO?
Janel Grant, a former WWE employee hired by McMahon in 2019 as an administrator-coordinator in the company’s legal department, faced various types of abuse during her working time, as per recent lawsuits. Grant has accused McMahon of personal abuse, trafficking her to other WWE employees, and requesting personalized sexual content for a former WWE star he aimed to re-sign.
Grant signed a $3M nondisclosure agreement with McMahon but received only $1M, leading her to violate the agreement. Following her allegations, McMahon decided or was forced to step down from his position. Subsequently, WWE President Nick Khan issued the email to WWE employees, which states the following:
“I wanted to inform you that Vince McMahon has tendered his resignation from his positions as TKO Executive Chairman and on the TKO Board of Directors. He will no longer have a role with TKO Group Holdings or WWE”
WWE President Nick Khan has issued the following email to WWE Employees:
“I wanted to inform you that Vince McMahon has tendered his resignation from his positions as TKO Executive Chairman and on the TKO Board of Directors. He will no longer have a role with TKO Group Holdings… pic.twitter.com/AfsOJiypYh
— Wrestle Ops (@WrestleOps) January 27, 2024
McMahon stepped down, vehemently denying Grant’s allegations. The case’s progression will determine if the WWE co-founder returns to his position.
